Fidelity Rotational

In addition to the rotation of ETFs by asset class, utilizing asset class timing, I have also been publishing for a number of years Fidelity Select Rankings.

Performance of this methodology has been stellar, returns averaging between 12% and 15% or more since the mid 1980s.  The returns will depend upon the time frame utilized and the number of funds one chooses to participate in.

The problem with this philosophy is the draw downs can be quite severe at times. All draw downs have been ultimately overcome however, I am well aware clients will abandon a strategy at precisely the time it is about to turn. I have worked on timing methods basis a popular average to mitigate those draw downs the attempts to date have been unsuccessful. New ideas have presented themselves and are in the process of being back tested.

You will be the first to know if I am successful at the mitigation. Until then, on a quarterly basis I update the performance. Until then here is the performance from the mid-80s through June of 2014 in .pdf format:
This study iScreen Shot 2014-10-20 at 3.20.41 PMs similar in scope to the ETF Asset Allocation study above. I have been publishing this data for members for years and the performance has been exemplary yielding a compounded annual rate of return of 12% to 15% with no market timing. Depending upon the number of funds held, i.e. 2, 4, or more.

As an example here is the performance, no market timing, just maintaining positions in the top 2 rated funds, rotating monthly if necessary, for the last 25 years.

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