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.

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This analysis is available to Professional and Institutional members and enables investors to better allocate capital by identifying which funds to buy and which funds to avoid. 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 iShares U.S. Consumer Staples ETF (IYK), Vanguard Financials Index Fund (VFAIX), Strive U.S. Energy ETF (DRLL), and Fidelity Enterprise Technology Services Portfolio (FBSOX). Some of the worst funds include State Street S&P Telecom ETF (XTL), Goldman Sachs Global Real Estate Securities Fund (GARKX), Invesco Dorsey Wright Utilities Momentum ETF (PUI), and Fidelity Advisor Industrials Fund (FCLAX).

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 fourth quarter of 2024.

This article was originally published on October 15, 2024.

Disclosure: David Trainer, Kyle Guske II, and Hakan Salt receive no compensation to write about any specific stock, sector, style, or theme.

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[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.

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