Friday, January 06, 2017

ETF Returns {Market Sectors}

Below, and again using the performance return capabilities from, are various sector ETFs that are in our investment universe for sector investment strategies. At the right on each chart is the S&P 500 ETF for comparison.  You can double-click on each chart to make it larger for easier viewing.  The year was bifurcated.  Non-cyclical, more defensive names did not do as well as the more cyclical names in the market.  The exception here was the utilities sector {think higher dividends- which corresponds to how ETFs with higher payouts performed in 2016} and the financial sector.  Banks can thank Mr. Trump's election for their outperformance.  Most of their gains came after the election, a theme you'll see in the next chart as well.  Health care took it on the chin again in 2016.  

The more cyclical sectors of the market were the areas that really shined last year.  Again most of their performance came in that explosive rally that occurred after the election.  Energy, the best performing sector last year, began rallying earlier in the year as the price of oil recovered from a disastrous 2015.  

*Performance data comes from the performance chart utility developed by  While we assume their data is correct, we make no claims and cannot be held responsible for the accuracy of these results.

**Long various indices shown above in both client and personal accounts.  Please note these positions can change at any time without notice on this blog or on any other form of communication including written and electronic.