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

About

Own the three S&P 500 sectors with the strongest 2‑month performance, equal‑weighted and rebalanced monthly, using the SPDR sector ETFs (e.g., XLK, XLV, XLF, XLI, XLY, XLP, XLE, XLB, XLC, XLU, XLRE).
NutHow it works
Each month, it checks how much each S&P 500 sector rose over the last ~40 trading days (~2 months). The sectors are: Technology (XLK), Health Care (XLV), Financials (XLF), Industrials (XLI), Consumer Discretionary (XLY), Consumer Staples (XLP), Energy (XLE), Materials (XLB), Communication Services (XLC), Utilities (XLU), Real Estate (XLRE). It buys the 3 that gained the most and splits money equally until next month.
CheckmarkValue prop
Momentum sector rotation: monthly top-3 sector bets. In out-of-sample tests it delivers a lower beta (~0.74), comparable drawdowns (~18.4%), and solid risk-adjusted performance (Sharpe ~1.22) vs SPY’s higher but more correlated 22% return.

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Invest in this strategy
OOS Start Date
Sep 6, 2023
Trading Setting
Monthly
Type
Stocks
Category
Momentum, sector rotation, etf, us large-cap, trend-following
Tickers in this symphonyThis symphony trades 11 assets in total
Ticker
Type
XLB
State Street Materials Select Sector SPDR ETF
Stocks
XLC
State Street Communication Services Select Sector SPDR ETF
Stocks
XLE
State Street Energy Select Sector SPDR ETF
Stocks
XLF
State Street Financial Select Sector SPDR ETF
Stocks
XLI
State Street Industrial Select Sector SPDR ETF
Stocks
XLK
State Street Technology Select Sector SPDR ETF
Stocks
XLP
State Street Consumer Staples Select Sector SPDR ETF
Stocks
XLRE
State Street Real Estate Select Sector SPDR ETF
Stocks
XLU
State Street Utilities Select Sector SPDR ETF
Stocks
XLV
State Street Health Care Select Sector SPDR 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.

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

"Sector Select" is currently allocated toXLB, XLEandXLI. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Sector Select" has returned 20.27%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Sector Select" is 18.41%. 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 "Sector Select", 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.