Exchange Traded Fund Timing And Rotation

Exchange Traded Funds (ETFs) now cover almost every possible market sector - from industrial sectors to country and regional sectors. Such breadth of choice allows for the creation of ETF rotation strategies that should allow an investor to get greater return by moving to the "hot" sectors no matter what the current market conditions are.

Broad Market ETFs


Index ETFs were introduced about 20 years ago to track the broader stock market indexes such as the famous Dow Industrials and the index tracking etf, SPY which tracks the S&P 500 Index. These exchange traded funds generally follow the major indexes and are fairly less volatile (move less in each direction) than other more specific sector and country ETFs.

Exchange Traded Funds that Track More Specific Sectors of the Market

Sector rotation strategies are now practicable because of the number of specific sector ETFs that are now available. Exchange Traded Funds cover almost every conceivable sector of the economy, from transportation, to energy and gold. These ETFs are specific enough to ensure that at least some of the market segments will move up no matter what phase of the economic cycle the economy is in. Thus, sector rotation strategies that can give great returns are now possible without investing in individual stocks.

Of course, the more narrow the segment, the more important it is to use a strategy that finds the outperforming sectors in time to get the benefit of the sector's performance.

Country or Region ETFs

The last type of ETF that is useful for creating sector rotation strategies are the country or region specific ETFs. These country specific ETFs allow the investor to devise a rotation strategy that moves into the "hot" region and then out again when another region is poised to outperform.

ETF Rotation Strategies - the Possibilities are Limitless!

With all the exchange traded fund possibilities for the creative investor to look to - there never has been a better time to use ETFs to devise market outperforming rotation strategies.
By: Martin Williams
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Information provided by a leading expert in the creation of mechanical timing systems for the one of the longest running authorities in timing systems, Timing-Signals.Com,, supplying ETF rotation strategies and mechanical timing signals for exchange traded funds (ETFs) and the federal employees TSP at Exchange Traded Fund Timing