Sector Allocation Roadmap – 1Q12

I recommend investors buy funds from the Consumer Staples and Information Technology sectors, though any sector can have Attractive-or- better-rated funds based on their holdings. See Figures 4 through 13 in our latest Sector Allocation Roadmap report for a detailed breakdown of ratings distributions by sector, or see my individual sector fund reports for ETF and mutual fund recommendations by sector.

The full series of my reports on the Best & Worst Sector and Style Funds is here.

Figures 14 and 15 present the best and worst funds in each sector as of January 19, 2012 according to our Predictive Rating. For a full list of all funds in each sector ranked from best to worst, see our free fund screener.

Methodology

Our sector analyses are based on the market-weighted aggregation of our models and stock ratings on the 3000+ companies we cover in each 1 sector, the S&P 500, and the Russell 2000 as of January 19th, 2012.
Our bottom-up approach to stocks drives our bottom-up research on sectors, indices, and funds.
This report provides clients with benchmarks from the S&P 500, Russell 2000, and all Sectors to aid in the analysis of individual companies as well as the major sector and index ETFs and mutual funds.
Given the success of our Rating system for individual stocks, we believe its application to groups of stocks (i.e. ETFs and mutual funds) helps investors make more informed ETF and mutual fund buying decisions. Barron’s featured our unique ETF research in “The Danger Within”.

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