The ETF has outperformed the S&P 500 by 250 basis points over the previous 12 months. How does it do it? Koscik said the fund allocates roughly 70% of its capital to the S&P 1,500 and then other 30% of the fund to its top sector picks.
Currently, the firm likes technology stocks and health care, but doesn't just buy the overall sector. He added that after selecting the top sectors, the company looks to buy the best stocks in them.
On a weekly basis, the fund reviews all of the stocks in its holdings and rebalance or cut them based on whether price moment has slowed or if the stock is beginning to underperform.Apple (AAPL) is the fund's biggest holding. The stock has had an interesting ride over the past year, Koscik said, but it looks like Apple might have found its groove once again. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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