Sector Rotation ETF Aims to Shield Investors From Volatility

The video discusses a sector rotation ETF designed to outperform the S&P 500 in a rising market and protect investors during declines. It employs a sector rotation strategy, focusing on undervalued industries. The fund is actively managed, primarily in the US, with a focus on financials, biotech, software, and computers. It holds funds from multiple issuers, including State Street and Vanguard. Despite its goals, the ETF has underperformed compared to the S&P 500 since its launch in 2017. It has $480 million in assets, a 65 basis point expense ratio, and a Bloomberg green light with a warning for active management.

What is the primary mission of the sector rotation ETF?

• To outperform the S&P 500 in a declining market

• To maintain a fixed allocation across all sectors

• To outperform the S&P 500 in a rising market and protect during declines

• To invest solely in technology stocks

Which industries does the sector rotation ETF primarily focus on?

• Healthcare and pharmaceuticals

• Real estate and construction

• Financials, biotech, software, and computers

• Energy and utilities

How does the sector rotation ETF differ from other ETFs?

• It has a fixed expense ratio

• It focuses exclusively on emerging markets

• It holds funds from multiple issuers

• It invests only in US-based companies

Since its launch, how has the sector rotation ETF performed compared to the S&P 500?

• It has matched the performance of the S&P 500

• It has shown no correlation with the S&P 500

• It has trailed the S&P 500

• It has consistently outperformed the S&P 500

What is the expense ratio of the sector rotation ETF?

• 100 basis points

• 50 basis points

• 65 basis points

• 80 basis points