Sectors can be an efficient tool to help advisors get a leg up on a changing market. In this upcoming webcast, gain insight on navigating sector investing in the late business cycle and how to best diversify an investment portfolio.
On the upcoming webcast, How Sectors Can Help with a Changing Market, Matthew Bartolini, Head of SPDR Americas Research, State Street Global Advisors; Robert Forsyth, III, Head of SPDR Americas Client Enablement Group, State Street Global Advisors; and Colin Ireland, Head of SPDR Americas Institutional & Home Office Strategy, State Street Global Advisors, will explore sector views for the quarter.
Investors who are interested in taking a sector approach to investing in the markets have a number of sector-specific ETF options to choose from, including:
- Communication Services Select Sector SPDR Fund (NYSEArca: XLC)
- Consumer Discretionary Select Sector SPDR ETF (NYSEArca: XLY)
- Consumer Staples Select Sector SPDR Fund (NYSEArca: XLP)
- Energy Select Sector SPDR (NYSEArca: XLE)
- Financial Select Sector SPDR Fund (NYSEArca: XLF)
- Health Care Select Sector SPDR ETF (NYSEArca: XLV)
- Industrial Select Sector SPDR (NYSEArca: XLI)
- Materials Select Sector SPDR (NYSEArca: XLB)
- Real Estate Select Sector SPDR Fund (NYSEArca: XLRE)
- Technology Select Sector SPDR ETF (NYSEArca: XLK)
- Utilities Select Sector SPDR (NYSEArca: XLU)
State Street Global Advisors also recently launched a actively-managed, sector rotation SPDR ETF, the SPDR SSGA US Sector Rotation ETF (XLSR).
The ETF features tactical allocation strategies and are managed by the firm’s Investment Solutions Group (ISG). ISG is comprised of more than 75 strategists, analysts and portfolio managers overseeing more than $266 billion in assets for investors including the world’s leading central banks, sovereign wealth funds and pension funds.
The SPDR SSGA US Sector Rotation ETF seeks to provide capital appreciation by overweighting or underweighting S&P 500 Sector ETFs based on ISG’s sector return forecasts and research, which includes a proprietary, quantitative sector selection model. It’s a tried-and-true strategy that has allowed State Street Global Advisors to thrive and differentiate themselves in the ETF space.
For XLSR, ISG uses the model results derived and applies qualitative judgment to construct a portfolio of sector ETFs that seeks to maximize returns while meeting risk targets. XLSR gives investors the opportunity to utilize a much-needed sector rotation strategy to their core portfolio, especially given the volatility seen during the fourth quarter of 2018.
Financial advisors who are interested in learning more about sector strategies can register for the Wednesday, May 1 webcast here.