%0 Journal Article %A Ray R. Sturm %T Select Sector SPDRs and the S&P 500: Is the Sum of the Parts Greater than the Whole? %D 2010 %R 10.3905/JWM.2010.13.1.062 %J The Journal of Wealth Management %P 62-74 %V 13 %N 1 %X In December 1998, Select-Sector ETFs, which subdivide the S&P 500 SPDR (SPY) into nine distinct industry/sector groupings, were introduced into the market. In the study presented in this article, the author compares the returns from actively managing a portfolio of the nine Select-Sector funds using various techniques from the academic literature to the benchmark SPY. To test the funds’ performance, the author forms portfolios based on an equal weighting of the nine funds, the Markowitz mean-variance selection process, and momentum and overreaction price behaviors. His findings indicate that an equal-weighted portfolio of the sector funds reliably outperforms the SPY over all measures of performance and are robust across time.TOPICS: Exchange-traded funds and applications, portfolio construction, analysis of individual factors/risk premia, performance measurement %U https://jwm.pm-research.com/content/iijwealthmgmt/13/1/62.full.pdf