By Carl Delfeld of the Chartwell ETF Advisor
The ten global exchange-traded funds that make up the S&P Global 1200 are a useful tool for ETF investors since they cover 70% of world equity value. They also allow advisors and investors the flexibility to execute a smart strategy to overweight or underweight global sectors.
So far this year, the best performing global sector has been the iShares S&P Global Healthcare Sector (IXJ) which is down 7.1% while the worst performing global sector has been the iShares S&P Global Technology Sector (IXN) which is down 14.8%. This spread of over 7% is significant but a look at a shorter timeframe highlights why a rotation strategy of shifting into undervalued sectors can pay off.
For the last ten days of January, the iShares S&P Global Materials (MXI) was up 9.1% and the Consumer Discretionary Sector ETF (RXI) was up 8.3%. Meanwhile, during the same ten days, Global Healthcare (IXJ) was down 2.8%.
The Global Consumer Discretionary Sector ETF (RXI) is up 2.24% today in mid-day trading.
The ten global sector ETFs which are listed below have anywhere from 30% to 65% invested in U.S. companies:
iShares S&P Global Consumer Discretionary (RXI)
iShares S&P Global Consumer Staples (KXI)
iShares S&P Global Health Care (IXJ)
iShares S&P Global Energy (IXC)
iShares S&P Global Industrials (EXI)
iShares S&P Global Technology (IXN)
iShares S&P Global Telecommunications (IXP)
iShares S&P Global Utilities (JXI)
iShares S&P Global Materials (MXI)
iShares S&P Global Financials (IXG)
To learn how to receive a copy of Chartwell's Global Sector ETF Investing white paper and for media inquiries, contact Carl Delfeld at 719.264.1503 or go to Chartwell ETF.
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