Sector Rotation Strategy — Daily Sector ETF Momentum Rankings
A data-driven sector rotation strategy: AIBROKER ranks sector ETFs daily by a backtested momentum model so you can see which sectors are leading. Free tier, no credit card.
A sector rotation strategy shifts exposure toward the parts of the market that are leading and away from those that are lagging. AIBROKER applies the same backtested momentum model it uses for stocks to sector ETFs, ranking them daily so you can see which sectors are trending strongest right now. It's a research tool for systematic rotation — not investment advice.
What is a sector rotation strategy?
Sector rotation is the practice of moving capital between market sectors — technology, energy, financials, healthcare, and so on — based on which are showing the strongest relative performance. Done systematically, it uses a rules-based signal rather than a macro forecast to decide where the leadership is.
How AIBROKER ranks sectors for rotation
- Ranks sector ETFs on a composite of 12-month, 6-month, and 1-month total return.
- Adjusts for realized volatility so trend strength is measured per unit of risk.
- Applies the Empirical Regime Model (ERM) overlay to flag when rotation signals are supportive vs. fragile.
- Refreshes daily after the US close with a cryptographically verified record.
- Backtested on point-in-time data, so the historical record has no survivorship bias.
See the sector leadership today
Open the live screener to see which sector ETFs rank strongest by momentum right now. Pair it with the composite momentum score methodology to understand exactly how the ranking is built before you act on it.
Frequently asked questions
What is a sector rotation strategy?
A sector rotation strategy shifts exposure toward the market sectors showing the strongest relative performance and away from the weakest. A systematic version uses a rules-based momentum signal — like AIBROKER's daily sector ETF ranking — instead of a discretionary macro call.
Does sector rotation actually work?
Relative-strength and momentum effects have been documented across sectors and asset classes in academic research (e.g. Moskowitz & Grinblatt 1999). Like any factor strategy it has good and bad periods, which is why AIBROKER publishes a regime label alongside the ranking rather than treating it as a guarantee.
Which sector ETFs does AIBROKER rank?
AIBROKER ranks a basket of liquid US sector ETFs by composite momentum score, refreshed daily. You can browse the full ranked list on the live screener.
Does AIBROKER tell me which sectors to buy?
No. AIBROKER ranks sectors by a transparent momentum model and publishes the methodology and backtests, but it does not provide individualized investment advice or recommendations to transact. Always do your own research.