Sector Rotation
> Sector Rotation Fund
How Have Sector Rotation Funds Performed?
There are literally hundreds of specialty mutual
funds
available for investors that want to focus in on tactical asset
allocation and sector rotation strategies inside their investment
portfolios. Jump onto any mutual fund screener to find some
of
these popular sector rotation funds, but you might want to do your
research before you invest.
What we found was many of the sector rotation funds failed to
outperform the market index over time, and had more than twice the
expense fee costs of Exchange Traded Funds. If your
considering a
sector rotation fund you need to do your homework carefully.
DIY Sector Rotation Fund Investing
Why pay high fees, subject
yourself to below average returns, and get boxed in with minimum
holding periods and investment amounts? We are convinced that
almost anyone can generate better returns that most of the
professionally managed sector rotation funds with a little research and
a few hours per month. Our preferred investment vehicle is
Sector
ETFs, but with a little more homework and research you could still
design an acceptable sector rotation strategy using sector mutual
funds. Let's explore some of the most popular sector fund
providers now.
Fidelity Sector Funds
Fidelity offers a group of sector mutual funds that can be used as
decent vehicles for sector rotation. Now there are still a
few
downsides to using these sector mutual funds over similar ETFs, namely
the minimum holding periods, minimum investment amounts, short-term
trading penalties, and higher expense ratios. You can check
out Fidelity Sector Funds here.
Pay close attention to hold periods, penalties, and expense
fees when doing your investor homework.
Rydex Sector Funds
Rydex is another fund company that offers a selection of sector mutual
funds. You can check out Rydex Sector Funds here.
Rydex also carries a larger stable of sector ETFs which is
another sound strategy to condider for sector rotation investing
strategies.
Up next: Why Sector Rotation ETF
Funds are Better Choices for Sector Rotation
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