Please see the right hand side of Scott's Investments for the August update to the US Sector ETFs. I track the performance of each month's portfolio as well as previous months' performance. A summary of the data is listed below, including the percent each ETF is above/below the 200 day moving average.

Last month none of the ETFs are above their 200 day moving average. The top 3 performers based on the sum of the quarterly, half year, and annual returns were XLI, XLP (consumer staples), and XLY. This month only XLU is above its 200 day moving average and the top 3 ETFs based on momentum are XLU, XLY, and XLI.

Potential strategies an investor could employ would be the following:

Click to enlarge

(ETF Rewind Glossary)

Another sour week for Large-Cap U.S. equities left the S&P 500 down by -0.6%. A Friday recovery effort on soothing words from Federal Reserve Chairman Bernanke nevertheless permitted a mixed finish on the part of Small-Caps (IWM), which staged a +0.8% gain on the week. [WSJ - Fed Ponders Bolder Moves]

Historically, the Big Pharma business model has been that of a fully integrated pharmaceutical company, complete with basic research and development, clinical trials, sales and marketing, focused on the development of blockbuster drugs. This model has recently been roundly criticized.

A research article issued in January from Morgan Stanley (MS) titled "Pharmaceuticals: Exit Research and Create Value" created a stir when it called for Big Pharma to toss out all small molecule research. A group of MDs, PhDs, MBAs, and CFAs calculated that reinvesting internal research to in-licensing would result in a three-fold increase in returns. This process, they said, would even triple the number of new drugs reaching the market each year. Research and Development, Morgan Stanley said, should be replaced by Search and Development. The core competency of Big Phama should shift from in-house research to late stage development and commercialization.