Ken Xuan, CFA, FRM · Stock List

Sector Allocation

Fundstrat's proprietary S&P 500 sector allocation strategy: a quantamental model that rates the 11 GICS sectors to help you outperform the index without significant added risk.

Monthly outlook Proprietary S&P 500 sector model Performance tracked vs. S&P 500
Start Your 30-Day Free Trial →
★★★★★ 4.9 · 1,055+ Google reviews
Fundstrat Direct Team
Fundstrat Direct Team
Latest · Sep 8, 2026

September 2026 Sector Allocation Update

Please CLICK HERE to download the sector allocation report in PDF format. MARKET RECAP In August 2026, we saw markets rise in the beginning of the month, only to struggle in the second half....

Get the latest report to your inbox

Updated monthly, Fundstrat's quantamental strategy merges the quantitative with the fundamental, providing a disciplined, yet flexible, approach to seeking outperformance. The strategy can help investors with both longer-term and shorter term strategies and is suitable for both active and passive investors.

Precision Sector Weighting
Precise allocation decisions based on raising or lowering your portfolio's weightings relative to the benchmark ratings in the S&P 500 index.
Multi-perspective Views
Combines the independent recommendations of Head of Research Tom Lee and Head of Technical Strategy Mark Newton, combined with the proprietary quantamental methodology managed by Head of Data Science Ken Xuan.
Strategic and Tactical Components
Incorporates both longer-term (strategic) and shorter-term (tactical) recommendations that can be used separately or as an integrated whole.
Flexible, easy implementation
Use sector ETFs to follow the strategy's recommendations, or manage sector exposures using individual stocks. The Sector Allocation strategy includes a tool to help easily calculate the necessary adjustments after each monthly rebalance.

Latest publications

Recent Sector Allocation publications

Monthly outlooks and performance updates, with the sector ETFs referenced in each.

View all →
Fundstrat Direct Team
Sector Allocation Sep 8, 2026 | 4:08 PM ET
September 2026 Sector Allocation Update
 Fundstrat Direct Team
Sector Allocation Aug 7, 2026 | 8:46 AM ET
August 2026 Sector Allocation Update
JNJ ▼ 1.06% LLY ▼ 1.91% MU ▲ 0.84% SMH ▲ 0.38%
Fundstrat Direct Team
Sector Allocation Jul 7, 2026 | 6:25 PM ET
July 2026 Sector Allocation Update
IWM ▼ 0.49% KRE ▼ 0.73% MAGS ▲ 0.43% SMH ▲ 0.38% XLB ▼ 0.96% XLE ▼ 0.31%
Fundstrat Direct Team
Sector Allocation Jun 11, 2026 | 8:49 AM ET
June 2026 Sector Allocation Update
 Fundstrat Direct Team
Sector Allocation May 7, 2026 | 9:11 AM ET
May 2026 Sector Allocation Update
DRIV ▼ 0.25% IBB ▼ 0.24% IGV ▲ 1.20% INFL ▼ 0.67% LIT ▼ 0.18% PBW ▼ 0.17%

Full reports are accessible to Fundstrat Pro & Fundstrat Macro memberships.

Ken Xuan, CFA, FRM

About the Strategist

Ken Xuan, CFA, FRM AC

Head of Data Science Research

Ken Xuan is the Head of Data Science Research at Fundstrat Direct where he optimizes and tests Fundstrat Direct’s proprietary portfolio models. He also manages and maintains Fundstrat Direct’s cryptocurrency and blockchain databases. Ken started his career at West Monroe Partners as an operations strategy consultant. Ken holds a B.S. degree in Management, Economics from Purdue University and an M.S. degree in Operations Research from Columbia University.

Sector Allocation performance is model performance and does not reflect actual trading, fees or taxes. Past performance is not a guarantee of future results. Not investment advice.

The rhythm

Model runs at month-end. Outlook in your inbox the first week.

1
Month-end
Data closes

Prices, earnings revisions, macro indicators and rates for all 11 sectors.

2
Days 1–2
Model runs

The quantamental model ranks sectors; Ken reviews the output with the research team.

3
First week
Outlook published

Overweights, underweights and the ETF picks, posted to site, email and app.

4
Month-end
Performance update

How the allocation did against the S&P 500, month and year-to-date.

Member reviews

What Our Clients Say

4.9
Based on 1,000+ reviews on Google
Sandy McK
Sandy McK

Tom is an excellent market strategist, consistently providing Fundstrat members with valuable insights about how the day to day churn of the news cycle will effect the markets. Technical Analysis by the team supports Tom’s insights. His commentary has kept me in the market which has been the correct move.

Blessed
Blessed

Top institutional grade research for retailers providing daily comprehensive detailed professional updates in market analytics across all sectors from macro to individual stocks including optional cryptocurrencies. A must have financial partner for serious investors that wish to be successful. Thank you Mark, Tom and Sean

Deb Frank
Deb Frank

Tom Lee provides such valuable insight into the markets and the economy.

FF_BrettLaBoo
FF_BrettLaBoo

Randy Robertson
Randy Robertson

Based on 1,000+ Google reviews

Member reviews shown are not compensated. They reflect the individual experiences of the members quoted, may not be representative of the experience of other members, and are not a guarantee of future results. Investing involves risk, and nothing herein is investment advice.

Membership

Get Sector Allocation with a Fundstrat Direct membership

Every plan starts with a 30-day free trial. Cancel anytime.

With Fundstrat AI
Save 5%
Fundstrat Macro + AI
Macro Fundstrat AI
from $260 /mo

Everything in Fundstrat Macro, plus Fundstrat AI on top of all of it.

  • Macro Minute Video (near-daily)
  • Tom Lee's First Word & Intraday Word
  • Mark Newton Technical Strategy
  • Stock lists: Upticks, Large-Cap & SMID Top Ideas
  • Monthly Macro webinars & FlashInsights
  • Fundstrat AI: ask anything across our research
  • AI in the charts: explain any chart in a report
  • Chart books, generated on demand
  • Webinar slides & AI summaries of every report
Start Free Trial
Fundstrat Macro + AI
Macro Fundstrat AI
from $247 /mo, billed annually

Everything in Fundstrat Macro, plus Fundstrat AI on top of all of it.

  • Macro Minute Video (near-daily)
  • Tom Lee's First Word & Intraday Word
  • Mark Newton Technical Strategy
  • Stock lists: Upticks, Large-Cap & SMID Top Ideas
  • Monthly Macro webinars & FlashInsights
  • Fundstrat AI: ask anything across our research
  • AI in the charts: explain any chart in a report
  • Chart books, generated on demand
  • Webinar slides & AI summaries of every report
Start Free Trial
Best Value
Fundstrat Pro + AI
Pro Fundstrat AI
from $314 /mo

Everything in Fundstrat Pro (Macro + Crypto), plus Fundstrat AI.

  • Everything in Fundstrat Macro
  • Crypto Comments & Digital Asset Strategy
  • Crypto Core Strategy allocation
  • All webinars: Macro, Technical & Crypto
  • Priority access to special reports
  • Fundstrat AI across Macro and Crypto research
  • AI in the charts: explain any chart in a report
  • Chart books, generated on demand
  • Webinar slides & AI summaries of every report
Start Free Trial
Best Value
Fundstrat Pro + AI
Pro Fundstrat AI
from $298 /mo, billed annually

Everything in Fundstrat Pro (Macro + Crypto), plus Fundstrat AI.

  • Everything in Fundstrat Macro
  • Crypto Comments & Digital Asset Strategy
  • Crypto Core Strategy allocation
  • All webinars: Macro, Technical & Crypto
  • Priority access to special reports
  • Fundstrat AI across Macro and Crypto research
  • AI in the charts: explain any chart in a report
  • Chart books, generated on demand
  • Webinar slides & AI summaries of every report
Start Free Trial
Without AI
Save 32%
Fundstrat Direct Macro Analysis
Macro
from $249 /mo

Tom Lee's daily research, First Word, Macro Minute, webinars.

  • Macro Minute Video (near-daily)
  • Tom Lee's First Word & Intraday Word
  • Mark Newton Technical Strategy
  • Stock lists: Upticks, Large-Cap & SMID Top Ideas
  • Monthly Macro webinars & FlashInsights
Start Free Trial
Fundstrat Direct Macro Analysis
Macro
from $169 /mo, billed annually

Tom Lee's daily research, First Word, Macro Minute, webinars.

  • Macro Minute Video (near-daily)
  • Tom Lee's First Word & Intraday Word
  • Mark Newton Technical Strategy
  • Stock lists: Upticks, Large-Cap & SMID Top Ideas
  • Monthly Macro webinars & FlashInsights
Start Free Trial
Best Value
Fundstrat Direct Pro
Pro
from $299 /mo

Everything in Macro + everything in Crypto.

  • Everything in Fundstrat Macro
  • Crypto Comments & Digital Asset Strategy
  • Crypto Core Strategy allocation
  • All webinars: Macro, Technical & Crypto
  • Priority access to special reports
Start Free Trial
Best Value
Fundstrat Direct Pro
Pro
from $219 /mo, billed annually

Everything in Macro + everything in Crypto.

  • Everything in Fundstrat Macro
  • Crypto Comments & Digital Asset Strategy
  • Crypto Core Strategy allocation
  • All webinars: Macro, Technical & Crypto
  • Priority access to special reports
Start Free Trial

FAQ

Common questions

The Sector Allocation Outlook publishes in the first week of every month, after the model runs on month-end data. A performance update follows at the end of each month.

All three. Every outlook posts to your members area, arrives by email, and appears in the Fundstrat Direct app with a push notification.

Yes. Prior outlooks, performance history and the sector tools are archived in the Sector Allocation section of the members area.

Sector Allocation is included in Fundstrat Macro and Fundstrat Pro. Crypto-only memberships do not include it.

No. Sector Allocation is research to inform your own decisions. Fundstrat Direct does not provide personalized investment advice or account management.

More from Fundstrat Direct

Explore the rest of the research

Tom Lee, CFA
Tom Lee, CFA
Macro Minute Video
Tom Lee's near-daily video read of markets before the open.
Explore →
Mark L. Newton, CMT
Mark L. Newton, CMT
Newton's Upticks
Technically derived stock selections from the S&P 500.
Explore →
Fundstrat Direct Team
Fundstrat Direct Team
Large Cap Stock List
Large-cap Top Ideas from Fundstrat's data-driven macro framework.
Explore →
Fundstrat Direct Team
Fundstrat Direct Team
Earnings Daily
Beats, misses and sector performance through earnings season.
Explore →
30-day free trial
Macro from $249/mo
Start Free Trial