Sector optimized minimum variance portfolio of S&P500. (Defensive portfolio)
Changes of the weights of the sectors in the portfolio durring the last three quarter. As a percentage
Current weights in the portfolio.
Valid For |
2024.1Q |
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Ticker |
Sector Name |
Weight |
ETF Ticker |
$IXU |
UTILITIES SELECT SECTOR INDEX NT |
0.233 |
XLU |
$IXT |
TECHNOLOGY SELECT SECTOR INDEX N |
0 |
XLK |
$IXY |
CONSUMER DISCRETIONARY SELECT SE |
0.023 |
XLY |
$IXV |
HEALTH CARE SELECT SECTOR INDEX |
0.25 |
XLV |
$IXE |
ENERGY SELECT SECTOR INDEX NTR |
0 |
XLE |
$IXB |
MATERIALS SELECT SECTOR INDEX NT |
0 |
XLB |
$IXRE |
REAL ESTATE SELECT SECTOR INDEX |
0 |
XLRE |
$IXI |
INDUSTRIAL SELECT SECTOR INDEX N |
0.067 |
XLI |
$IXM |
FINANCIAL SELECT SECTOR INDEX NT |
0 |
XLF |
$IXR |
CONSUMER STAPLES SELECT SECTOR N |
0.25 |
XLP |
$IXC |
COMMUNICATION SERVICES SELECT SECTOR INDEX |
0.178 |
XLC |
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UNIT |
1 |
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Portfolio allocation for sectors indexes of S&P500 index. The main goal is minimizing the risk of the portfolio. Used approach is the Markowitz Portfolio Theory (MPT).
This allocation way emphasis to maximize the expected return and minimize the risk level. According to the theory, every level of the return of the portfolio can be matched to a risk level,
depending to the risk aversion of the investor. Our allocation method - based on MPT - seeks that portfolio, where the expected risk is lower than the risk of the market portfolio (S&P500),
and the return could excess the expected return of the index.
.