FSI Sector Allocation

FSI Sector Allocation - October 2023 Outlook

Name: FS Insight
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Please CLICK HERE to download the October sector allocation report in PDF format.

We are pleased to announce the much-anticipated relaunch of the FSI Sector Allocation Strategy, designed to help investors outperform the market in the long run while managing risk exposure.

The new sector allocation model is comprised of two parts*:

Sector ETF Allocation: 85% of sector allocation model. Similar to the previous version of our sector allocation strategy, this is primarily realized through sector ETFs. The new decision-making process consists of three sub-components. (Slide 32) Passive - 50% of the 85% sector ETF allocation replicates the current sector distribution of the S&P 500 index. Strategic - 35% of the 85% sector ETF allocation is determined by the sector ratings of Fundstrat's Head of Research, Tom Lee, and the sector technical rating of Fundstrat's Head of Technical Strategy, Mark Newton. (Slides 33-34) Short-term Momentum - We increase the weighting of the top 3 sectors with the strongest short-term momentum. Conversely, we reduce the weighting of the 3 sectors with the weakest short-term momentum. (Slide 35) Tactical ETF Allocation: 15% of sector allocation model. This portion is new to the model. During each monthly update, we select 5 individu...

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