ETF Upgrades Come From Diverse Sectors

TSC Ratings data shows that the largest upgrades for May come from various categories of funds.

This shows that with the market declines, and the new economic cycle that we are about to experience, we may see the need for investors to be very selective and specific in picking mutual fund investments. Previously, it was possible to speak generally about a sector and how the funds in that sector had performed and focus more on sector rotation strategies.

Going forward, investing may be more about manager selection of the individual securities in a fund than the upward movement of the general market or index that was previously relied upon to drive returns. It is a stock pickers market that we are entering and the manager's ability in doing this is going to be key in driving results.

The ratings in the table below show that the largest ETF upgrades occurred across various categories from Precious Metals, Natural Resources, Biotech, Domestic Growth, Equity Income, Emerging Markets and Utilities. ...