At the beginning of each quarter, we rank each of the eleven sectors from best to worst with our Sector Ratings Report. These rankings are forward-looking and indicate how each sector should perform going forward.
This analysis is available to our Professional and Institutional members and enables investors to better allocate capital by identifying which funds to avoid and which funds to buy. More reliable & proprietary fundamental data, as shown in The Journal of Financial Economics, provides a new source of alpha and drives our research. Our Robo-Analyst technology[1] empowers our unique ETF and mutual fund rating methodology, which leverages our rigorous analysis of each fund’s holdings.[2]
Some of the best funds include First Trust Materials AlphaDEX Fund (FXZ), Fidelity Advisor Global Commodity Stock Fund (FIQRX), iShares U.S. Home Construction ETF (ITB), and (Fidelity Select Banking Portfolio (FSRBX). Some of the worst funds include Rydex Series Financial Services Fund (RYFNX), ProShares Online Retail ETF (ONLN), Fidelity Disruptive Medicine Fund (FMEDX), and Tidal Residential REIT Income ETF (HAUS).
Last quarter’s Sector Ratings can be found here. Last quarter’s Sector Recap is available here.
The following are our sector analyses for the first quarter of 2023.
- Basic Materials
- Consumer Cyclicals
- Consumer Non-cyclicals
- Energy
- Financials
- Healthcare
- Industrials
- Real Estate
- Technology
- Telecom Services
- Utilities
This article was originally published on January 18, 2023.
Disclosure: David Trainer, Kyle Guske II, Matt Shuler, and Italo Mendonça receive no compensation to write about any specific stock, sector, style, or theme.
Follow us on Twitter, Facebook, LinkedIn, and StockTwits for real-time alerts on all our research.
[1] Harvard Business School features the powerful impact of our research automation technology in the case New Constructs: Disrupting Fundamental Analysis with Robo-Analysts.
[2] See how our models and financial ratios are superior to Bloomberg and Capital IQ’s (SPGI) analytics in the detailed appendix of this paper.