ETF Sector Investing by Leslie N. Masonson
Are you interested in learning more about using exchange traded funds (ETFs) in your trading? Leslie N. Masonson, an active ETF trader, is president of Cash Management Resources, a financial consulting firm that focuses on ETF strategies. He is the author of Buy—Don’t Hold: Investing With ETFs Using Relative Strength To Increase Returns With Less Risk; and All About Market Timing, as well as Day Trading On The Edge. His website is www.buydonthold.com, where he writes a weekly blog. To submit topics for future columns, reach him at firstname.lastname@example.org.
First, some background. Sector investing came into its own when Fidelity Investments introduced five Fidelity Select sector mutual funds in 1981. This was expanded over the years—28 funds introduced in the 1980s and six thereafter—to the current 39 no-loads. A few of these funds were usually in the top rankings of actively managed mutual funds for many five- and 10-year performance periods. These included technology, energy, software, and biotechnology sectors ...