iQUANT ranks all 11 U.S. market sectors every month and rotates your portfolio into the top three. The system looks at momentum, how much of the market's upside each sector captures, and where institutional money is flowing — then does the work for you. You can hold the sector ETFs directly, or drill down into the top 5 stocks in each sector for a more concentrated approach. The Risk-Off Shield moves you defensive on signal. It's the difference between a rotation strategy and a risk-managed one. That's the whole idea: simple to use, serious under the hood.
Regime: The market is currently in a Risk-On posture — consistent with last month's Risk-On reading.
Current Leaders: The top-ranked sectors are Technology (XLK), Healthcare (XLV), Financials (XLF). Notable rotation this month: Financials entered the top tier, displacing Materials.
Underperformers: The weakest-ranked sectors are Consumer Discretionary, Real Estate, Telecom — these remain excluded from the portfolio.
Recent Momentum: Returns over the last 3 months have been mixed. The 3-month average monthly return is 2.08% vs. S&P 500 at 0.80%. Momentum has been decelerating recently.
Long-Run Scorecard: Since inception, the strategy has compounded at 15.64% CAGR with a 1.18 Sharpe ratio, delivering +3.86% annualized alpha versus the S&P 500. Alpha generation remains positive across the full cycle.
Historical Leadership: Since inception, the most frequently selected top-tier sectors have been: Consumer Staples (49% of months), Healthcare (46% of months), Technology (29% of months).
| Tier | 1 Year | 3 Year | 5 Year | 10 Year | 15 Year | Inception | Max DD |
|---|---|---|---|---|---|---|---|
| Market Outperform | 45.54% | 32.56% | 20.74% | 18.70% | 18.57% | 15.64% | 34.07% |
| Market Perform | 4.11% | 12.48% | 6.75% | 8.17% | 9.95% | 8.08% | 59.42% |
| Market Underperform | 0.71% | 9.20% | 6.49% | 9.17% | 11.03% | 10.07% | 51.48% |
| S&P 500 (Benchmark) | 15.71% | 22.76% | 13.70% | 15.23% | 15.56% | 11.78% | 50.78% |
| Year | Market Outperform | Market Perform | Market Underperform | S&P 500 | Alpha |
|---|---|---|---|---|---|
| 2026 (YTD) | 33.58% | 3.36% | 3.39% | 12.71% | 20.87% |
| 2025 | 27.24% | 9.60% | 8.31% | 17.72% | 9.52% |
| 2024 | 24.85% | 12.39% | 10.35% | 24.89% | -0.03% |
| 2023 | 11.40% | 12.44% | 14.55% | 26.18% | -14.78% |
| 2022 | -4.05% | -14.25% | -8.41% | -18.18% | 14.13% |
| 2021 | 33.84% | 27.24% | 25.73% | 28.73% | 5.11% |
| 2020 | 16.12% | 3.71% | 7.11% | 18.33% | -2.21% |
| 2019 | 31.31% | 24.21% | 26.02% | 31.22% | 0.08% |
| 2018 | -0.67% | -6.51% | -11.51% | -4.57% | 3.90% |
| 2017 | 14.49% | 12.32% | 20.67% | 21.71% | -7.21% |
| 2016 | 29.71% | 11.31% | 5.70% | 12.00% | 17.72% |
| 2015 | 3.21% | -2.83% | -1.84% | 1.23% | 1.97% |
| 2014 | 12.30% | 16.35% | 9.23% | 13.46% | -1.16% |
| 2013 | 23.93% | 24.96% | 35.35% | 32.31% | -8.37% |
| 2012 | 19.04% | 12.62% | 16.45% | 15.99% | 3.05% |
| 2011 | 2.97% | 6.66% | -5.53% | 1.89% | 1.08% |
| 2010 | 29.49% | 10.12% | 18.28% | 15.06% | 14.43% |
| 2009 | 22.32% | 27.67% | 36.01% | 26.35% | -4.03% |
| 2008 | -21.66% | -42.50% | -38.90% | -36.79% | 15.13% |
| 2007 | 9.79% | 0.94% | 10.84% | 5.15% | 4.64% |
| 2006 | 16.13% | 15.22% | 29.87% | 15.85% | 0.29% |
| 2005 | 6.75% | 12.52% | -1.41% | 4.83% | 1.92% |
| 2004 | 19.40% | 11.18% | 20.93% | 10.70% | 8.71% |