Why we upped exposure to utilities and materials

The Island Light Sector rotation strategy was updated for March as part of our regular monthly rebalancing.

The strategy employs an advanced algorithm that seeks to capture market momentum in an optimized portfolio of US sectors, rebalanced monthly.

For this month, we increased our exposure to the US materials and utilities sectors, reduced allocations to financials and eliminated our investment in technology.


We have no investment in the consumer discretionary, consumer staples, energy, healthcare, and industrials sectors.

Relative to the S&P 500 sector weights, we are overweight to utilities and materials.


The following table reflects the performance of our strategy, the S&P and the 9 sector ETFs that comprise our investment universe, through February 27, 2015:


Photo Credit: Ed G via Flickr Creative Commons

The investments discussed are held in client accounts as of March 10, 2015. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.