At the beginning of each quarter, we rank each of the eleven sectors from best to worst with our Sector Ratings Report. These rankings are forward-looking and indicate how each sector should perform going forward.
This analysis is available to Professional and Institutional members and enables investors to better allocate capital by identifying which funds to buy and which funds to avoid. More reliable & proprietary fundamental data, as shown in The Journal of Financial Economics, provides a new source of alpha and drives our research. Our Robo-Analyst technology[1] empowers our unique ETF and mutual fund rating methodology, which leverages our rigorous analysis of each fund’s holdings.[2]
Some of the best funds include Invesco Dynamic Energy Exploration & Production ETF (PXE), iShares U.S. Home Construction ETF (ITB), Schwab Health Care Fund (SWHFX), and Fidelity Banking Portfolio (FSRBX). Some of the worst funds include Rydex Financial Services Fund (RYFNX), Rydex Retailing Fund (RYRTX), Simplify Volt Cloud and Cybersecurity Disruption ETF (VCLO), and Global X Genomics & Biotechnology ETF (GNOM).
Last quarter’s Sector Ratings can be found here. Last quarter’s Sector Recap is available here.
The following are our sector analyses for the second quarter of 2023.
- Basic Materials
- Consumer Cyclicals
- Consumer Non-cyclicals
- Energy
- Financials
- Healthcare
- Industrials
- Real Estate
- Technology
- Telecom Services
- Utilities
This article was originally published on April 14, 2023.
Disclosure: David Trainer, Kyle Guske II, and Italo Mendonça receive no compensation to write about any specific stock, sector, style, or theme.
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[1] Harvard Business School features the powerful impact of our research automation technology in the case New Constructs: Disrupting Fundamental Analysis with Robo-Analysts.
[2] See how our models and financial ratios are superior to Bloomberg and Capital IQ’s (SPGI) analytics in the detailed appendix of this paper.