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Symphonies
Pick the Trending Sector
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

Monthly sector-rotation: ranks 11 Vanguard sector ETFs by their last ~200-day performance, buys the top 3 equally, and rebalances monthly to ride trends. Simple, concentrated, and can change holdings as leadership shifts.
NutHow it works
Once a month, it checks how each of 11 US stock sectors has performed over the last ~200 days. It then buys the top 3 sectors equally and sells the rest. ETFs used: VGT Tech; VDE Energy; VHT Health Care; VFH Financials; VIS Industrials; VAW Materials; VCR Consumer Discretionary; VDC Consumer Staples; VPU Utilities; VNQ Real Estate; VOX Communication Services.
CheckmarkValue prop
Out-of-sample edge: 14.91% annualized return vs SPY 13.99%; Sharpe ~0.90 vs ~0.81; max drawdown ~19.0% vs ~22.1%. A monthly top-3 sector rotation aims for stronger, smoother performance than the S&P 500.

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Invest in this strategy
OOS Start Date
Feb 13, 2022
Trading Setting
Monthly
Type
Stocks
Category
Sector rotation, momentum, trend following, us equities, etfs, monthly rebalance
Tickers in this symphonyThis symphony trades 0 assets in total
Ticker
Type

FAQ

A Composer symphony is an automated trading strategy that executes trades based on parameters of your choice. Some symphonies are similar to holding one ETF in normal conditions and rotating to a different ETF when market conditions shift, for example a 5% drop in the S&P 500, while others use complex rules with dozens of triggers. However, complex doesn’t always mean better. A simple, well-structured symphony can be just as effective as an intricate one. Learn more about how symphonies work here.

"Pick the Trending Sector" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Pick the Trending Sector" is currently allocated toVOX, VPUandVGT. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Pick the Trending Sector" has returned 14.91%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Pick the Trending Sector" is 19.02%. The maximum drawdown measures the largest peak-to-trough decline. It's an important metric to evaluate risk and the strategy's behavior during market stress.

To invest in "Pick the Trending Sector", simply click the Invest button on this page. You'll need to open an account with Composer if you don't have one yet, then you can start investing. Composer will automatically execute the trades for you based on the strategy's rules. Composer also supports trading individual stocks, ETFs, crypto, and options.