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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

A monthly, momentum-based sector rotation strategy that buys the top-3 performing sector ETFs (out of 11) with equal weights and rebalances every month.
NutHow it works
Each month, evaluate 11 sector ETFs (Energy to Consumer Discretionary). Measure each ETF’s performance over the prior 200 trading days. Pick the three best performers. Invest an equal amount in those three ETFs and hold until the next month, then repeat.
CheckmarkValue prop
Out-of-sample, this monthly momentum sector-rotation buys the top 3 ETFs, delivering ~14.9% annualized return, Sharpe ~0.91, drawdown ~19% vs ~22% for the S&P, and beta ~0.79—more efficient growth than the S&P 500.
1M
3M
6M
YTD
1Y
3Y
Max
www.composer.trade
Performance
Compared to selected benchmarks
AlphaBetaR2R
SPY
0.010.870.780.88
Performance Metrics
Cumulative ReturnAnnualized ReturnTrailing 1M ReturnTrailing 3M ReturnSharpe Ratio
SPY
696.56%10.58%-2.02%-1.16%0.62
Pick the Trending Sector
622.79%10.06%-3.09%-1.94%0.6
Initial Investment
$10,000.00
Final Value
$72,279.47
Regulatory Fees
$49.14
Total Slippage
$313.37
Invest in this strategy
OOS Start Date
Feb 13, 2022
Trading Setting
Monthly
Type
Stocks
Category
Momentum, sector rotation, etfs, systematic investing, diversified sectors
Tickers in this symphonyThis symphony trades 11 assets in total
Ticker
Type
VAW
Vanguard Materials ETF
Stocks
VCR
Vanguard Consumer Discretionary ETF
Stocks
VDC
Vanguard Consumer Staples ETF
Stocks
VDE
Vanguard Energy ETF
Stocks
VFH
Vanguard Financials ETF
Stocks
VGT
Vanguard Information Technology ETF
Stocks
VHT
Vanguard Health Care ETF
Stocks
VIS
Vanguard Industrials ETF
Stocks
VNQ
Vanguard Real Estate ETF
Stocks
VOX
Vanguard Communication Services ETF
Stocks

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 toVDE, VAWandVIS. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Pick the Trending Sector" has returned 12.93%. 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, and options.