Telegram

ETF Current Outlook

ETF Driven Strategy

September Outlook


Tickers on this report: $XLF

Intra-Month Update August 8

We will be adjusting our FSI Sector Allocation weights to reflect Tom Lee's August 10th upgrade of the Financial Sector to overweight from neutral. We believe the accelerated timetable for Fed tapering and a reversal of the downward trend in rates removes the primary headwind that the sector has recently faced. In line with IHME, we believe there will be a limited resurgence of COVID-19, and financials will rejoin the other Epicenter sectors in leading the broader market's gains. You can see the resulting changes below.

Delta wave might be the 'final wave' in 2021. Upgrading Financials from N to OW

Initial August Outlook

After some consideration, we are adjusting our ETF Sector Allocation product to be updated quarterly rather than monthly. We believe that by rebalancing this product every quarter rather than monthly, we can increase returns by circumventing taxes that can otherwise undermine performance. The ETF Sector Allocation product was created for investors whose performance is tied to a benchmark, so every piece of outperformance helps. The goal of the product is to outperform the S&P 500 while taking on minimal additional risk.

While this will be the policy in the future, we will also reserve the right to adjust allocations on an intra-quarter basis if there are exceptional circumstances. In addition to this change in the product, we will be adjusting allocations to reflect Tom’s downgrade of the Financial Sector to Neutral ($XLF). The extra weighting freed up by the Financial sector will be redistributed evenly to the remaining sectors that have an above-market weighting.

You are trying to access FSI member-only content.
You need to have an active subcription in order to read this article.
If you are already a member at FSInsight, please Sign In here. If you don’t have a subscription to FSInsight yet, you can sign up below.

Choose one of our yearly plans to save nearly 15%

We accept crypto via BitPay for yearly subscriptions.
    • Macro
      FSI Macro
      from
      $
      199
      /mo
      billed anually
      Get access to all the macro research on FSInsight

        Tom Lee's First Word

        Tom Lee’s Equity Strategy

        Stock Lists

        ETF Sector Allocation

        Wall Street Whispers

        Signal From Noise

        Technical Analysis

        US Policy

        Fed Watch

        Live Webinars with Q&A

      First Month Free!
    • Crypto
      FSI Digital Assets
      from
      $
      99
      /mo
      billed anually
      Get access to all the crypto research on FSInsight

        Crypto Daily

        Crypto First Word from Tom Lee

        Crypto Blasts

        Crypto Weekly

        Crypto Technical Analysis

        Bitcoin Valuation

        Bitcoin Misery Index

        Live Webinars with Q&A

        -

        -

      First Month Free!
    • Macro + Crypto
      FSI Pro
      from
      $
      249
      /mo
      billed anually
      Get access to all the exclusive research on FSInsight

        Looking at code?

        I am hidden!

        -

        FSI Macro

        +

        FSI Digital Assets

        Designed by

        HANGAR115

        -

        -

      First Month Free!
FSInsight logo
150 East 52nd St, 3rd Floor, New York, NY 10022

Subscribe to our Free Weekly Report

An institutional-grade report delivered to your inbox every week.

© 2021 FSInsight. All rights reserved. Developed by HANGAR115.

Illustrations by Karl Wimer.