Sector leadership changes, but the challenge is distinguishing a durable rotation from everyday market noise. That is the idea behind ETFSector.com’s new TopN Sector Selection Models, a family of systematic strategies designed to concentrate exposure in the strongest areas of the S&P 500.
The five strategies—Top 3, Top 5, Top 7, Top 8 and Top 10—rank all eleven S&P 500 sectors each trading day using relative strength, then translate those rankings into portfolios on a disciplined quarterly rebalance schedule. They share the same underlying selection framework but offer different degrees of concentration and active risk, allowing investors to choose how far they want to deviate from the broad index.
