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Symphonies
Top 3 Sectors Strategy
Today’s Change
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A symphony is an automated trading strategy — Learn more about symphonies here

About

Each quarter, pick the 3 strongest US stock sectors by recent 3‑month performance and split the portfolio equally via sector ETFs. Simple momentum rotation; can concentrate in winners but may whipsaw when leadership changes quickly.
NutHow it works
Every quarter, it checks the last ~90 trading days average price change for 10 US sector ETFs and buys the best 3, split evenly. Sectors: XLK tech (Apple, Microsoft), XLY consumer discretionary (Amazon, Tesla), XLC communications (Alphabet, Meta), XLF financials, XLE energy, XLV healthcare, XLI industrials, XLB materials, XLP staples, XLU utilities. Note: XLC appears twice; most tools ignore duplicates.
CheckmarkValue prop
Out-of-sample evidence shows lower drawdown (16.8% vs 18.8% SPY) and solid risk-adjusted metrics (Calmar ~1.08, Sharpe ~1.25). A quarterly sector-momentum approach aims to capture trends with less downside risk and competitive upside vs the S&P 500.

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Invest in this strategy
OOS Start Date
Nov 17, 2023
Trading Setting
Quarterly
Type
Stocks
Category
Sector rotation,momentum,us equities,etfs,quarterly rebalance
Tickers in this symphonyThis symphony trades 10 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
XLU
State Street Utilities Select Sector SPDR ETF
Stocks
XLV
State Street Health Care Select Sector SPDR ETF
Stocks
XLY
State Street Consumer Discretionary 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.

"Top 3 Sectors Strategy" is currently performing the same as yesterday today. Performance updates in real time during market hours.

"Top 3 Sectors Strategy" is currently allocated toXLV, XLCandXLK. Holdings automatically adjust as market conditions change based on the strategy's rules.

Year-to-date, "Top 3 Sectors Strategy" has returned 16.69%. You can adjust the performance chart above to view returns across different time horizons.

The maximum drawdown for "Top 3 Sectors Strategy" is 16.76%. 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 "Top 3 Sectors Strategy", 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.