XLB continues as the #1 ranked Lazy Man component. This is a very small basket of ETFs but after hundreds of hours of backtesting other potential baskets, this one performs better than 90% of them. And, as mentioned previously, they all have rich option open interest (we use the Qs in lieu of QLD for options trades) for those that are comfortable with more risk exposure and more tightly monitored positions. It’s actually something of a horse race between QLD and XLB, but if we normalize beta, then XLB jumps out as the best choice. Keep in mind these are 3 day bars.
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