XRO Guggenheim Sector Rotation Etf

This fund looks to track the Zacks Sector Rotation Index which is comprised of approximately 100 securities selected, based on investment and other criteria, from a universe of the 1,000 largest listed equity companies based on market capitalization. The fund looks to rotate into higher rated sectors and shift exposure out of low rated sectors, potentially beating out the broad market’s performance in the process.

In order to find the best sectors to rotate into and out of, the fund uses a proprietary quantitative methodology using the Zacks 16 ‘expanded sectors’. Potential index constituents include all U.S. equities, domestic exchange-listed ADRs and MLPs that rank as the 1,000 largest based on market capitalization. The sector allocation methodology strives to overweight cyclical sectors prior to anticipated periods of economic expansion and overweight non-cyclical sectors prior to anticipated periods of economic contraction. Exposure for any one sector may range from zero to 45% while no single security can be weighted more than 5% of the total. Thanks to this flexibility and the quarterly rebalancing of the fund, the product can be quite nimble but can often see greater levels of trading activity than other large/mid cap focused ETFs.  For more information on the fund check out XRO’s home page.

 
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