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S&P 500 Optimal Sector Weight


Sector Momentum

Existing financial literature documents that sector indices exhibit price momentum. Persistence in sector returns may allow a sector rotation strategy based on momentum to be abnormally profitable over intermediate horizons.

Limited Downside Protection & Volatility Reduction

The dividend and call premium cash flows collected help preserve and grow invested principal by serving as a buffer by offsetting the impact of stock price declines during adverse market conditions.

Enhanced Income with Covered Call Sales

The S&P 500 Optimal Sector Weight Portfolio seeks to optimize the tradeoff between sector upside participation and option premium generation from the collection of dividends and a tactical call option overlay.

Sector Diversification

The S&P 500 Optimal Sector Weight Portfolio is invested in 11 GICS sector ETFs at all times. A dynamic-weighting process is evaluated and applied quarterly, restricting sector under/overweighting to the minimum/maximum weights of the S&P 500 during the preceding ten-year period.


Disclosures 

The portfolios’ principal may diminish due to adverse market conditions. The results reflect the reinvestment of all dividends. Returns are net of all mutual fund and Gyroscope Capital Management Group, LLC, fees and expenses.

Past performance is not indicative of future returns.