The Technology Select Sector SPDR (NYSEArca: XLK) and the Financial Select Sector SPDR (NYSEArca: XLF) have been two of the sturdier performers at the sector level as 10 -year Treasury yields have recently jumped. Additionally, XLF and XLK give DWAT a bit of a value tilt because financials and technology are two of the more attractively valued sectors relative to the S&P 500. [High Beta ETFs Time to Shine]
Conversely, DWAT does not hold richly valued consumer staples, energy or utilities sector ETFs. DWAT has another advantage that makes the ETF worth considering if equity markets retreat: The fund can also invest up to 30% in inverse U.S. equity exposure in the event of a prolonged market drawdown,” according to a statement issued by ArrowShares.
The Vanguard Mid-Cap Value ETF (NYSEArca: VOE) and the Materials Select Sector SPDR (NYSEArca: XLB) were DWAT holdings when the ETF first came to market, but DWAT has since parted ways with those funds.
Arrow DWA Tactical ETF
