@article {Sturm62, author = {Ray R. Sturm}, title = {Select Sector SPDRs and the S\&P 500: Is the Sum of the Parts Greater than the Whole? }, volume = {13}, number = {1}, pages = {62--74}, year = {2010}, doi = {10.3905/JWM.2010.13.1.062}, publisher = {Institutional Investor Journals Umbrella}, abstract = {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{\textquoteright} 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}, issn = {1534-7524}, URL = {https://jwm.pm-research.com/content/13/1/62}, eprint = {https://jwm.pm-research.com/content/13/1/62.full.pdf}, journal = {The Journal of Wealth Management} }