Sector Rotation — Relative Strength

sector rotationweeklyretiredsince 2026-07-02universe: S&P sector ETFs

The prompt (verbatim — this is the strategy)

You manage a portfolio. Hold the 5 S&P sector ETFs with the strongest 3-month relative strength, equally weighted. Rebalance only when the top-5 set changes or a held position drifts more than 5 percentage points from equal weight. Explain each trade in plain English.

Hard limits enforced by a validator, not by the model: long-only; no leverage; max 25% per position.

Claude Sonnet 5

NAV

$99,724

Day change

-0.28%

Since inception

-0.28%

SPY same period

-0.48%

Strategy SPY (total return)

Current holdings

Ticker	Shares	Value	% of portfolio	Since bought
XLV State Street Health Care Select Sector SPDR ETF	123.487	$20,306	20.4%	+1.53%
XLRE State Street Real Estate Select Sector SPDR ETF	451.569	$20,271	20.3%	+1.35%
XLF State Street Financial Select Sector SPDR ETF	356.252	$19,968	20.0%	-0.16%
XLI State Street Industrial Select Sector SPDR ETF	107.782	$19,657	19.7%	-1.71%
XLK State Street Technology Select Sector SPDR ETF	108.95	$19,522	19.6%	-2.39%
Cash		$0	0.0%

Decision log

2026-07-02 — traded (5 orders)

Starting from an all-cash portfolio, I ranked the 11 S&P sector ETFs by their 3-month price performance (a measure of 'relative strength'). The five strongest performers are: Technology (XLK, +34.0%), Financials (XLF, +12.9%), Industrials (XLI, +12.1%), Health Care (XLV, +11.3%), and Real Estate (XLRE, +10.1%). Per the strategy rules, I'm buying these five ETFs in equal 20% weights each, using all available cash. This gives the portfolio exposure to the sectors showing the best recent momentum while staying diversified across five names, none of which exceeds the 25% max position limit.

Ticker	Side	Target weight	Status
XLK State Street Technology Select Sector SPDR ETF	buy	20.0%	filled
XLF State Street Financial Select Sector SPDR ETF	buy	20.0%	filled
XLI State Street Industrial Select Sector SPDR ETF	buy	20.0%	filled
XLV State Street Health Care Select Sector SPDR ETF	buy	20.0%	filled
XLRE State Street Real Estate Select Sector SPDR ETF	buy	20.0%	filled

GPT-5

NAV

$99,724

Day change

-0.28%

Since inception

-0.28%

SPY same period

-0.48%

Strategy SPY (total return)

Current holdings

Ticker	Shares	Value	% of portfolio	Since bought
XLV State Street Health Care Select Sector SPDR ETF	123.487	$20,306	20.4%	+1.53%
XLRE State Street Real Estate Select Sector SPDR ETF	451.569	$20,271	20.3%	+1.35%
XLF State Street Financial Select Sector SPDR ETF	356.252	$19,968	20.0%	-0.16%
XLI State Street Industrial Select Sector SPDR ETF	107.782	$19,657	19.7%	-1.71%
XLK State Street Technology Select Sector SPDR ETF	108.95	$19,522	19.6%	-2.39%
Cash		$0	0.0%

Decision log

2026-07-02 — traded (5 orders)

Per the strategy, we hold the five S&P sector ETFs with the strongest 3‑month returns, equally weighted. The top five on 3‑month relative strength are: XLK (+34.02%), XLF (+12.89%), XLI (+12.12%), XLV (+11.32%), and XLRE (+10.05%). The portfolio is currently 100% cash, so we are initiating these five positions at 20% each. We will rebalance only if the top‑5 set changes or if any holding drifts more than 5 percentage points from the 20% target.

Ticker	Side	Target weight	Status
XLK State Street Technology Select Sector SPDR ETF	buy	20.0%	filled
XLF State Street Financial Select Sector SPDR ETF	buy	20.0%	filled
XLI State Street Industrial Select Sector SPDR ETF	buy	20.0%	filled
XLV State Street Health Care Select Sector SPDR ETF	buy	20.0%	filled
XLRE State Street Real Estate Select Sector SPDR ETF	buy	20.0%	filled

Hypothetical performance. Every portfolio here is a paper portfolio: simulated trades, no real money, no brokerage. Fills use next-day official closing prices with $0 commission; slippage and taxes are excluded, which flatters results. These are forward tests, not backtests — but they are still hypothetical, and past performance does not indicate future results. Nothing here is investment advice or a recommendation to buy or sell anything.