Investing in SweetSpot
SweetSpot Investments LLC (SSI) offers investors the opportunity to subscribe to The SweetSpot Report, a quarterly newsletter that provides the information needed to trade SweetSpot in a self-managed account. For more about subscriptions, see the FAQs.
Prospective subscribers are advised as follows:
SSI is a publisher of investment data and research, and is not a registered investment adviser. Subscribers are responsible for their own investment decisions. Information that SSI provides to subscribers does not constitute a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. To the extent that any such information may be deemed to be investment advice, it is impersonal and not tailored to the investment needs of any individual. See additional disclosures here.
The annual fee for SSI’s subscription service is $495. To subscribe, send a check to:Neil Stoloff The SweetSpot Report
221 W Gorgas Ln Philadelphia, PA 19119-2510 USA
For assistance, or to receive periodic updates on performance, call 734-417-5667 or email firstname.lastname@example.org.
Details of SweetSpot Investing
The SweetSpot Investment Strategy can be traded in most investment accounts. Some accounts, such as those associated with 401(k) and 403(b) plans, and some “full service” brokerage accounts, restrict the available investment options. The only type of account that is not suitable for SweetSpot investing is one that offers no access to either Fidelity sector funds or corresponding exchange-traded funds (ETFs).
While ETFs are available for almost every sector in SSI’s investment universe, historically we have tended to favor Fidelity funds when given a choice. (The 2016 model portfolio is invested 61 percent in ETFs and 39 percent in Fidelity funds.) The reason for this preference is simple: As a group, Fidelity funds have consistently outperformed their ETF counterparts over time.
Still, we have no assurance that Fidelity’s advantage will continue, whereas we can rely upon what ETFs have to offer: transparency, tax-efficiency, low fees, and liquidity. New SweetSpot investors need not wait for us to phase out Fidelity funds; with rare exceptions, a complete SweetSpot portfolio can be constructed today using only ETFs. Regardless of which vehicle an investor chooses, however: SSI has found that, in the end, it is more important to invest in the right sectors than it is to hold the “best” funds in those sectors.