| Sector | RS-Ratio | RS-Mom | Quadrant |
|---|
Why these tickers?
An RRG divides each sector by the benchmark, so anything about the two that isn't the sector (different countries, different index providers, different dividend handling) leaks into the signal. The tickers are chosen so sector and benchmark stay comparable:
- Ten iShares global sector ETFs tracking S&P Global 1200 sector indices — one consistent, genuinely global classification across all ten, and US-listed so free data sources carry them.
- Benchmark: URTH (iShares MSCI World, developed markets) by default, or ACWI (adds emerging markets).
- Dividend treatment is neutralised by using total-return (dividend-adjusted) prices for every ticker, so the ratio doesn't drift on ex-dividend dates.
Defensive (IXJ health care, KXI staples, JXI utilities) covers demand that is relatively insensitive to the economic cycle; the other seven are cyclical. Communication services (IXP) is a mixed bag post-2018 but is dominated by growth names globally, so it sits with the cyclicals.
Known trade-off: the sector funds are S&P while URTH/ACWI are MSCI — a mild
index-family mismatch, far smaller than a FTSE-vs-MSCI or developed-vs-emerging mix because both
sides are global and developed-market-dominated. See notes.md for the full rationale.