I know tomorrow is technically the last day of the month, but barring catastrophe, the Fidelity Sector Fund Rotational System is set to beat the S&P for the month and the year.
I designed the system in early 2010, and watched the out-of-sample performance until February 2012, when I began trading it live.
Here are the results since inception:
These results do not include commissions or slippage for either the Fidelity trades or $SPY. There is no commission or slippage incurred when trading these Fidelity sector funds. There would be an initial commission for the $SPY purchase. Dividends for $SPY and the Fidelity funds are also not included.
For the month the system is up 4.5% while $SPY is up 3%.
The system is currently long the following three funds:
FSAIX (Air Transportation)
FSRFX (Transportation)
FSUTX (Utilities)
The top 5 ranked Fidelity Sector Funds are as follows:
- FSAIX (Air Transportation)
- FSUTX (Utilities)
- FSRFX (Transportation)
- FBMPX (Multimedia)
- FSPCX (Insurance)