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Top 3 Sector Rotation

for period ending May 31, 2018
 
This portfolio recipe is provided by VizMetrics.
t.srt3 is the Recipe ID for this portfolio recipe. This Recipe ID appears in the scatterplots below and on the Summary Page showing all portfolio recipes. You can invest in this portfolio recipe using the Recipe Ingredients listed below at FolioInvesting.com or your favorite brokerage. See How to Invest (below) for more details on how buy this portfolio recipe.
 
Use this page to find a high return, lower risk portfolio recipe using the Choose – Invest – RebalanceTM process
 

How to Choose

Risk vs. return for t.srt3:   The scatterplots below show the best portfolio recipes as dots closest to the green smiley the at top left of each scatterplot. The yellow dot shows the total return and risk for this portfolio recipe. The risk is measured by maximum loss over each period. Any dot closer to the top left corner has shown better performance using this metric.

For more metrics (Total Return, Risk and Volatility, Correlation) scroll down on this page. The Summary Page compares all portfolio recipes.
Maximum Drawdown vs. Annual Return
t.srt3Peer group recipesAll other recipesS&P 500 (SPY)U.S. Bonds (BND)Balanced (60% Equity / 40% Bonds)
The location of t.srt3 and the identities of all the portfolios on the 3, 5, 7, and 10 year graphs are available to subscribers only. Upgrade your subscription. Only $15 per month. Cancel anytime.
 
Description   Top 3 Sector Rotation gives investors access to a dynamic portfolio that uses an asset allocation algorithm that chooses U.S. sector mutual funds (from Fidelity) to invest in based on recent returns. This portfolio recipe uses mutual funds and uses a dynamic sector allocation algorithm which buys up to 3 sector funds out of 38 possible Fidelity Select Sector funds. The algorithm buys the 3 top-ranked funds based on the 3-, 6-, and 12-month return, and sells when the asset falls out of the Top 3..

Category   Tactical: DIY. This portfolio recipe is tactical (dynamic) and do-it-yourself.

Ingredients used   This portfolio recipe invests in up to three mutual funds chosen from a set of 38 Fidelity Select Sector funds..

Peer Group   Tactical: DIY

You can see how this recipe has performed compared to its peers by clicking on any "Rank: Group" link in the Compare sections, below.

Methodology   This portfolio recipe is created using an algorithm that chooses up to three sector funds at a time. The Top 3 Sector Rotation uses a tactical (also called "dynamic" or "active") asset allocation approach. This portfolio recipe is allowed to choose from a set of 38 sector funds that represent the major industrial sectors. The steps to create this portfolio are as follows:
  1. VizMetrics calculates a momentum score based on the 3-, 6-, and 12-month total return for each of the sector mutual funds.
  2. VizMetrics chooses the Top 3 funds in the list to invest in during the upcoming month.
  3. VizMetrics repeats the ranking the next month.
  4. VizMetrics chooses a new fund only if the current fund has fallen out of the Top 3 in the ranking. Otherwise the current fund is kept for another month.
Cost   Access to this portfolio recipe is included at no extra charge as part of your VizMetrics Investor subscription. You can invest in this portfolio recipe using the Recipe Ingredients listed below at FolioInvesting.com or your favorite brokerage. This portfolio works with the Folio Unlimited Plan at FolioInvesting.com which allows you to purchase and rebalance all the underlying ETFs in one simple transaction. See How to Invest, below.
 

How to Invest

Recipe ingredients for this portfolio recipe appear on this page only if you have subscribed to VizMetrics Investor. Upgrade your subscription to see the full list of recipe ingredients and % allocation to each ingredient.

Once you have subscribed to VizMetrics Investor, you can invest using this portfolio recipe at FolioInvesting.com. Buy and rebalance with just a few clicks.

Or you can also use the recipe ingredients on this page to invest at your favorite brokerage. For details on how to invest using this portfolio recipe, see How to Invest in a tactical portfolio
 

How to Rebalance

Update frequency:   The recipe for this portfolio can change monthly. In other words, the ingredients and percentage allocation to each ingredient can change at the beginning of each month. Therefore, this portfolio requires a few minutes each month to buy or sell the ingredients to match the updated portfolio recipe.

Where to get the recipe updates&nsbp;&nsbp;This portfolio recipe is available to VizMetrics Investor subscribers. Upgrade your subscription. After subscribing, the exact recipe (ingredient plus percentage allocation to each ingredient) appears on this page under a new section labelled "Recipe ingredients"Rebalancing steps
If you've invested with this recipe (using the "recipe ingredients for FolioInvesting.com" above), you can quickly rebalance each month using the automated tools at FolioInvesting.com. See How to rebalance your portfolio
If you've invested at another brokerage, you need to update this portfolio each month to adhere to this portfolio's recipe. See How to rebalance your portfolio

Compare: Risk vs. Return

for period ending May 31, 2018
VizMetricsTM Score This is a 0 to 100 score that measures risk-adjusted return
 1 year3 year5 year7 year10 year
t.srt35771859481
Peer Group* average4565758394
60% Equity / 40% Bonds4777839090
Global Equities (ACWI)5264746957
U.S. Equities (SPY)5985909580
U.S. Bonds (BND)2155657594
Ranking: Peer Group*Rank: GroupRank: GroupRank: GroupRank: GroupRank: Group
Ranking: All RecipesRank: AllRank: AllRank: AllRank: AllRank: All
Downside Deviation vs. Annual Return
t.srt3Peer group recipesAll other recipesS&P 500 (SPY)U.S. Bonds (BND)Balanced (60% Equity / 40% Bonds)
The location of t.srt3 and the identities of all the portfolios on the 3, 5, 7, and 10 year graphs are available to subscribers only. Upgrade your subscription. Only $15 per month. Cancel anytime.
Standard Deviation vs. Annual Return
t.srt3Peer group recipesAll other recipesS&P 500 (SPY)U.S. Bonds (BND)Balanced (60% Equity / 40% Bonds)
The location of t.srt3 and the identities of all the portfolios on the 3, 5, 7, and 10 year graphs are available to subscribers only. Upgrade your subscription. Only $15 per month. Cancel anytime.
M-squared
 1 year3 year5 year7 year10 year
t.srt3-2.9%-2.1%-2.3%-0.6%0.1%
Peer Group* average-3.8%-2.8%-3.5%-2.1%3.9%
60% Equity / 40% Bonds-0.1%0.2%0.5%1.1%2.3%
Global Equities (ACWI)-1.8%-3.2%-4.3%-5.8%-4.7%
U.S. Equities (SPY)0.0%0.0%0.0%0.0%0.0%
U.S. Bonds (BND)-19.2%-7.7%-7.6%-4.5%4.6%
Ranking: Peer Group*Rank: GroupRank: GroupRank: GroupRank: GroupRank: Group
Ranking: All RecipesRank: AllRank: AllRank: AllRank: AllRank: All
Alpha
 1 year3 year5 year7 year10 year
t.srt3-0.3%-0.7%1.5%2.8%2.8%
Peer Group* average0.4%1.0%1.9%3.3%6.0%
60% Equity / 40% Bonds0.2%0.2%0.5%0.8%1.6%
Global Equities (ACWI)-1.1%-2.8%-3.6%-5.7%-5.1%
U.S. Equities (SPY)0.0%0.0%0.0%0.0%0.0%
U.S. Bonds (BND)-1.4%0.8%1.6%2.6%3.2%
Ranking: Peer Group*Rank: GroupRank: GroupRank: GroupRank: GroupRank: Group
Ranking: All RecipesRank: AllRank: AllRank: AllRank: AllRank: All
Sharpe
 1 year3 year5 year7 year10 year
t.srt31.150.811.031.080.64
Peer Group* average1.050.730.910.950.86
60% Equity / 40% Bonds1.451.011.291.220.76
Global Equities (ACWI)1.260.710.850.640.35
U.S. Equities (SPY)1.450.991.241.120.63
U.S. Bonds (BND)-0.700.260.500.730.89
Ranking: Peer Group*Rank: GroupRank: GroupRank: GroupRank: GroupRank: Group
Ranking: All RecipesRank: AllRank: AllRank: AllRank: AllRank: All

Compare: Total Return

for period ending May 31, 2018
5-year graph t.srt3Global equities (ACWI)U.S. equities (SPY)U.S. bonds (BND)60% Equity / 40% Bonds (s.6040)
Total Return (Compound Annual Growth Rate)
 Year-to-dateMay 20181 year3 year5 year7 year10 year
t.srt35.9%1.8%13.3%9.7%12.8%12.9%9.6%
Peer Group* average1.9%2.1%9.6%6.5%8.1%8.4%9.7%
60% Equity / 40% Bonds0.9%1.9%8.8%7.0%8.5%8.6%7.3%
Global Equities (ACWI)0.3%0.5%12.4%7.8%8.9%7.7%4.9%
U.S. Equities (SPY)1.9%2.4%14.4%10.9%12.9%12.8%9.0%
U.S. Bonds (BND)-1.6%0.7%-0.4%1.4%1.9%2.5%3.6%
Ranking: Peer Group*Rank: GroupRank: GroupRank: GroupRank: GroupRank: GroupRank: GroupRank: Group
Ranking: All RecipesRank: AllRank: AllRank: AllRank: AllRank: AllRank: AllRank: All
Historical Return
 20132014201520162017
t.srt320.2%13.8%5.5%10.5%18.0%
Peer Group* average13.0%12.0%-5.0%8.0%17.5%
60% Equity / 40% Bonds18.1%9.9%0.7%8.8%13.9%
Global Equities (ACWI)22.3%2.4%-2.2%8.4%24.3%
U.S. Equities (SPY)32.3%13.5%1.3%12.0%21.7%
U.S. Bonds (BND)-2.1%5.8%0.6%2.5%3.5%
Ranking: Peer Group*Rank: GroupRank: GroupRank: GroupRank: GroupRank: Group
Ranking: All RecipesRank: AllRank: AllRank: AllRank: AllRank: All

Compare: Risk & Volatility

for period ending May 31, 2018
Maximum Drawdown
 1 year3 year5 year7 year10 year
t.srt3-3.6%-12.3%-12.3%-12.3%-46.5%
Peer Group* average-4.3%-8.5%-11.5%-12.2%-17.9%
60% Equity / 40% Bonds-3.6%-5.1%-5.2%-7.8%-26.7%
Global Equities (ACWI)-5.9%-11.8%-13.4%-18.9%-47.2%
U.S. Equities (SPY)-6.3%-8.5%-8.5%-13.8%-41.8%
U.S. Bonds (BND)-2.3%-3.7%-3.7%-4.0%-4.0%
Ranking: Peer Group*Rank: GroupRank: GroupRank: GroupRank: GroupRank: Group
Ranking: All RecipesRank: AllRank: AllRank: AllRank: AllRank: All
Standard Deviation
 1 year3 year5 year7 year10 year
t.srt311.0%12.5%13.5%13.0%17.4%
Peer Group* average7.8%8.7%9.2%9.6%12.5%
60% Equity / 40% Bonds5.1%6.7%6.6%7.3%10.2%
Global Equities (ACWI)9.1%11.2%11.1%13.2%18.4%
U.S. Equities (SPY)9.4%11.3%11.0%12.3%16.4%
U.S. Bonds (BND)2.3%2.9%3.1%3.0%3.9%
Ranking: Peer Group*Rank: GroupRank: GroupRank: GroupRank: GroupRank: Group
Ranking: All RecipesRank: AllRank: AllRank: AllRank: AllRank: All
Downside Deviation
 1 year3 year5 year7 year10 year
t.srt34.7%7.7%7.4%7.2%11.4%
Peer Group* average4.5%5.4%5.4%5.6%7.4%
60% Equity / 40% Bonds3.0%3.9%3.5%4.0%7.0%
Global Equities (ACWI)5.3%7.0%6.5%8.6%12.9%
U.S. Equities (SPY)5.2%6.4%5.9%6.9%11.3%
U.S. Bonds (BND)1.8%2.0%2.0%1.9%2.1%
Ranking: Peer Group*Rank: GroupRank: GroupRank: GroupRank: GroupRank: Group
Ranking: All RecipesRank: AllRank: AllRank: AllRank: AllRank: All
Beta
 1 year3 year5 year7 year10 year
t.srt30.940.950.870.780.74
Peer Group* average0.610.470.470.390.39
60% Equity / 40% Bonds0.550.600.610.600.63
Global Equities (ACWI)0.930.970.971.051.11
U.S. Equities (SPY)1.001.001.001.001.00
U.S. Bonds (BND)-0.03-0.01-0.01-0.040.01
Ranking: Peer Group*Rank: GroupRank: GroupRank: GroupRank: GroupRank: Group
Ranking: All RecipesRank: AllRank: AllRank: AllRank: AllRank: All

Compare: Correlation

for period ending May 31, 2018
 1 year3 year5 year7 year10 year
to Global Stocks (ACWI)0.750.860.660.690.71
to S&P500 (SPY)0.800.850.720.740.70
to U.S. Bonds (BND)-0.320.030.03-0.040.15
to Commodities (DBC)0.450.250.160.310.48
to Gold (GLD)0.360.010.130.240.13