January 2025 U.S. markets reflected measured optimism, despite lingering economic and inflation concerns. Defensive sectors provided a stable foundation, while growth-oriented areas began to show signs of strain. Geopolitical uncertainties and cautious trade dynamics influenced investor behavior, setting the tone for a risk-aware approach throughout the month.
I’m embarking on a journey to test a long-term investment strategy using SPDR Select ETFs. The strategy involves ranking ETFs based on their performance in the previous month and then investing in them according to their weight ratio by grand total. By applying the weight ratio by grand total, I aim to allocate funds in a way that reflects each ETF’s significance within the entire portfolio. Each month, I’ll invest a fixed amount – 1,000 in this case – into my Demo account with Interactive Brokers. The percentage allocation will be recalculated monthly based on the latest performance rankings.