k_ETF_assetClass

— A related strategy: after a broad market crash or during a prolonged overall decline, buy broad ETFs (or sector ETFs)

Prefer high-dividend low-volatility ETFs (such as SPHD) .. really aim at defensive stocks. They tend to bleed less if the decline deepens.

Prefer quantum below $200, so I can use multiple small limit order and avoid stressful night session.

After a recovery, consider to reduce (or exit) the too-broad ETFs, because I prefer holding single-names. See ##when2sell stocks

— filtering ETFs available on Rbh
* criteria: expRatio ..
* criteria: div yield ..
* criteria: AUM > 1 bn
* criteria: price chart ..

There are many ETF-screener sites…

— SQG [SectorQuickGrab] .. my main strategy. If a specific sector is down but I have no specific stock pre-cleared and checked out (due diligence), then I would quickly buy a sector-specific ETF. In a few weeks, after I buy selected single stocks to gain the desired exposure, I will reduce or exit those ETFs to free up cash.

https://etfdb.com/etfs/industry/ shows close to 100 sectors

The correlation Assumption .. in a sector-wide decline, all major constituents decline. My (would-be) favorite single stock is likely one of the major constituents of the sector. If that stock drops 11%, then the sector ETF probably hit a similar drop. The quick grab is effective if that correlation is strong.

Biggest tracking error is expRatio. See note below.

— tip: Keep small positions in a large number of specific ETFs, so I know which “sector-ETF” are avilable.

• perfer liquidity
• prefer small quantum .. to support limit-buy. https://www.cnbc.com/sector-etfs/ shows prices of 50 common ones.
• prefer 1) low expRatio and 2) higher div? LG2 I won’t hold it long term
• need to ensure ETF contains at least 21 names
• — the contenders
• Utilities: XLU
• energy (oil/gas): XLE, XOP, IYE
• midstream:
• rEstate: VNQ, IYR, DRW (blogpost)
• Reit: see blogpost
• telco: XTL
• pharma:
• biotech: IBB
• banking:
• tobacco:
• Inet:
• mining: XME
• tourism: