The market rotation model is a tactical asset allocation system that uses the well-documented momentum effect. We have several variations of this model. One, the Major Market Rotation System, ranks eight major markets, while the Minor Market Rotation System ranks twenty-three. The last variation, iShares / Fidelity ETF Market Rotation ranks several markets that correspond to ETFs that can be traded for free through Fidelity Investments.
| Market/Sector | ETF | ETF Ticker | Rank | Sum | 13 Wk | 26 Wk | 52 Wk |
|---|---|---|---|---|---|---|---|
| Small Cap Stocks | iShares Russell 2000 Index Fund | IWM | 1 | 51.5 | 3.1 | 19.7 | 28.8 |
| Large Cap Stocks | iShares Core S&P 500 ETF | IVV | 2 | 44.8 | 4.7 | 16.2 | 23.9 |
| International Stocks | iShares MSCI EAFE Index Fund | EFA | 3 | 32.7 | -0.1 | 7.8 | 25 |
| Real Estate | iShares Cohen & Steers Realty Majors Index Fund | ICF | 4 | 16.9 | -0.2 | 7.5 | 9.6 |
| Short Term Treasuries | iShares Barclays 1-3 Year Treasury Bond Fund | SHY | 5 | 0.4 | 0 | 0.1 | 0.3 |
| Commodities | PowerShares DB Commodity Index Fund | DBC | 6 | -2.8 | -4 | -4.5 | 5.8 |
| Emerging Markets | Vanguard FTSE Emerging Markets ETF | VWO | 7 | -11.9 | -7.8 | -7.9 | 3.9 |
| Long Term Treasuries | iShares Barclays 20+ Year Treasury Bond Fund | TLT | 8 | -15.5 | -1 | -6.7 | -7.8 |
| Gold | iShares Gold Trust | IAU | 9 | -45.4 | -12.7 | -18 | -14.7 |
As of: June 15, 2013
| Market/Sector | ETF | ETF Ticker | Rank | Sum | 13 Wk | 26 Wk | 52 Wk |
|---|---|---|---|---|---|---|---|
| Middle East | Market Vectors Gulf States Index ETF | MES | 1 | 76.6 | 15.9 | 27.6 | 33.1 |
| Small Cap U.S. Stocks | iShares Russell 2000 Index Fund | IWM | 2 | 51.5 | 3.1 | 19.7 | 28.8 |
| Large Cap U.S. Stocks | iShares Core S&P 500 ETF | IVV | 3 | 44.8 | 4.7 | 16.2 | 23.9 |
| Japan | iShares MSCI Japan Index Fund | EWJ | 4 | 41.1 | 2.1 | 16.9 | 22.2 |
| Europe | Vanguard FTSE Europe ETF | VGK | 5 | 37 | 1.5 | 7.5 | 28 |
| International Small Cap | iShares MSCI EAFE Small Cap Index Fund | SCZ | 6 | 35.2 | -1 | 9.8 | 26.4 |
| Japan Small Cap | SPDR Russell/Nomura Small Cap Japan ETF | JSC | 7 | 28.1 | -1.4 | 12.2 | 17.2 |
| Real Estate | iShares Cohen & Steers Realty Majors Index Fund | ICF | 8 | 16.9 | -0.2 | 7.5 | 9.6 |
| Energy | PowerShares DB Energy Fund | DBE | 9 | 16.7 | -1.4 | 4 | 14 |
| High Yield Bonds | SPDR Barclays High Yield Bond ETF | JNK | 10 | 11.5 | -0.6 | 1.8 | 10.3 |
| Emerging Markets Small Cap | SPDR S&P Emerging Markets Small Cap ETF | EWX | 11 | 10.8 | -4.6 | 1.3 | 14.1 |
| Short Term Corporate Bonds | iShares Barclays 1-3 Year Credit Bond Fund | CSJ | 12 | 2.7 | 0.1 | 0.6 | 2 |
| Canada | iShares MSCI Canada Index Fund | EWC | 13 | 1.4 | -4.5 | -2.6 | 8.6 |
| Short Term Treasuries | iShares Barclays 1-3 Year Treasury Bond Fund | SHY | 14 | 0.4 | 0 | 0.1 | 0.3 |
| Australia | iShares MSCI Australia Index Fund | EWA | 15 | 0.2 | -13.5 | -3.1 | 16.8 |
| International Treasury Bonds | SPDR Barclays International Treasury Bond ETF | BWX | 16 | 0 | 0 | 0 | 0 |
| Africa | Market Vectors Africa Index ETF | AFK | 17 | -3.1 | -6.1 | -5 | 8.1 |
| Emerging Market Debt | iShares JPMorgan USD Emerging Markets Bond Fund | EMB | 18 | -3.3 | -2.5 | -5 | 4.2 |
| Asia | iShares S&P Asia 50 Index Fund | AIA | 19 | -10.6 | -6.9 | -9.6 | 5.9 |
| Long Term Treasuries | iShares Barclays 20+ Year Treasury Bond Fund | TLT | 20 | -15.5 | -1 | -6.7 | -7.8 |
| Agriculture | PowerShares DB Agriculture Fund | DBA | 21 | -16.8 | -3.3 | -11 | -2.5 |
| Latin America | iShares S&P Latin America 40 Index Fund | ILF | 22 | -25.4 | -11.2 | -10.3 | -3.8 |
| Base Metals | PowerShares DB Base Metals Fund | DBB | 23 | -28.6 | -6.7 | -13.6 | -8.2 |
| Precious Metals | PowerShares DB Precious Metals Fund | DBP | 24 | -55 | -15.4 | -21.7 | -17.9 |
As of: June 15, 2013
| Market/Sector | ETF | ETF Ticker | Rank | Sum | 13 Wk | 26 Wk | 52 Wk |
|---|---|---|---|---|---|---|---|
| Small Cap | iShares Russell 2000 Index Fund | IWM | 1 | 51.5 | 3.1 | 19.7 | 28.8 |
| Large Cap | iShares Core S&P 500 ETF | IVV | 2 | 44.8 | 4.7 | 16.2 | 23.9 |
| International Small Cap | iShares MSCI EAFE Small Cap Index Fund | SCZ | 3 | 35.2 | -1 | 9.8 | 26.4 |
| International Stocks | iShares MSCI ACWI Index Fund | ACWI | 4 | 30.7 | 0.9 | 8.8 | 21 |
| Investment Grade Corporate Bonds | iShares iBoxx $ Investment Grade Corporate Bond Fund | LQD | 5 | 0.4 | -1.1 | -1.8 | 3.4 |
| Broad Bond | iShares Core Total U.S. Bond Market ETF | AGG | 6 | -1.5 | -0.7 | -1.1 | 0.4 |
| Emerging Market Debt | iShares JPMorgan USD Emerging Markets Bond Fund | EMB | 7 | -3.3 | -2.5 | -5 | 4.2 |
| Emerging Markets | iShares MSCI Emerging Markets Index Fund | EEM | 8 | -14.2 | -8.1 | -8.8 | 2.7 |
| Treasury Inflation Protected Securities | iShares Barclays TIPS Bond Fund | TIP | 9 | -14.4 | -4.5 | -5.9 | -4 |
As of: June 15, 2013