NEW YORK (TheStreet) -- Picking sectors has been a winning strategy for the Huntington U.S. Equity Rotation Strategy ETF (HUSE) - Get Strategy Shares US Market Rotation Strategy ETF Report, fund manager Paul Koscik told TheStreet's Gregg Greenberg.
The ETF has outperformed the
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.
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.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.