Main Sector Rotation ETF (SECT)

SECT: Rotation Strategy With Interesting Factor Exposures But Unconvincing Performance, A Hold

The Main Sector Rotation ETF is an actively managed vehicle with a strategy designed to rotate between sectors, favoring those that are underappreciated, to capture sufficient upside and reduce downside. I initiate coverage of SECT with the Hold rating, owing to its unconvincing performance and a lack of a confident factor edge over IVV. SECT is currently overweight in IT, featuring a mix of high beta and considerable growth exposure, though without a convincing GARP tilt.