There were at least a dozen that did better than IYE over the 5 year time period.
Looking at the 3 year return less than 20% had less than a 6% annualized return. And, only one had a negative return.
IXN is dominated by a small number of companies whose stock is priced at a high p/e, making the market risky.
I think that your strategy is good, but if you almost all your investments in the S&P index, it may reduce your investing flexibiliy.
As noted below I have been using Select sector investing for about 18 months, moving into new sectors based on the performance based model. My annualized return for the period is 22.3%.
Frank
That's very good, can you give some more details about when you shift sectors? Do you move into sectors that are down? Or, do you look for trends?
What's the newsletter?
Also, how has the S&P d>
The newsletter is NoLoad FundX; it is highly ranked by Hulbert, the newsletter ranking newsletter.
They compute a "Fund X score" based on weighted historical performance and classify mutual funds based on risk. The newsletter suggests a balanced portfolio of Class 1, 2 and 3 mutual funds.
In addition they make available online a database that allows you to search for your own portfolio. I search for the top Class 1 mutual funds (most risky) and then pick the top six Fidelity funds from the top 50 Class 1 funds. Typically there are 5 Selects and Latin America.
There is more than market risk in this strategy so I limit it to 10% of my portfolio. Over the past 18 months I was in Energy and Energy Service as gas prices went up and out as gas prices went down. I also was in Latin America the entire time and that has doubled.
I'm not sure our moderators like very specific recomendations like this; this discussion group avoids pushing "get rich quick" schemes. I can reply by PM if necessary.
Frank
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