The financial markets are now closed for May. This means our system has all the data needed to deliver the trading signal and the two ETF selections for June.
First of all, welcome to the 692 new subscribers who joined since I delivered the last signal 30 days ago. It’s a big pleasure for me to see the growth of this newsletter follow the growth of the investment strategy!
Before the first market opening of each month, I send out the trading signal provided by the systematic ETF strategy. The signal tells us which two ETFs the system will invest in for the coming month. This simple approach has outperformed the market in 25 of the past 26 years.
If you’re just here for the trading signal, feel free to scroll down to find it! 👇
New to The MarketFighter Strategy?
I write about a simple approach to beat the stock market with only 15 minutes of monthly work that anyone can copy. Check out these links:
➡️ The Quick Introduction
➡️ The Beginner’s Guide
➡️ The Advanced Breakdown
We had strong outperformance in May
The stock market in general continued the strong performance from April, and the past two months combined have generated double digit returns for both the MSCI World and the S&P 500 indices. This was mainly driven by a surge in AI and semiconductor-related stocks.
Our strategy did even better, outperforming both of the indices thanks to very strong development in the US Value position.
Interestingly, the value segmentation currently holds a significant amount of AI-related tech stocks like Micron and Intel. I don’t have an opinion on any specific companies, but it’s fascinating to see how the system picked up the early momentum in this field and allocated money into it.
As usual, I will publish the monthly performance report within the next few days when I have updated all the numbers. Stay tuned for this to see exactly how the MarketFighter Strategy performed compared to the market in May and how far we are ahead of the market benchmarks in 2026 so far.
The June 2026 Trading Signal 🔄️
For the coming month of June 2026, the MarketFighter Strategy will continue with an unchanged allocation compared to May. This means for the third consecutive month, it will be holding these two positions, equally weighted:
THE FACTOR ALLOCATION (50%):
▶️ USA Value
THE SECTOR ALLOCATION (50%):
▶️ Energy Sector
Despite the recent decline in the energy sector, its relative momentum still indicates a high probability of near-term outperformance. US Value looks exceptionally strong at the moment, particularly carried by semiconductors.
US-market investors can implement the signal with these ETFs:
✅ VLUE ticker (ISIN: US46432F3881)
✅ XLE ticker (ISIN: US81369Y5069)
European investors can implement the signal with these ETFs:
✅ QDVI ticker (ISIN: IE00BD1F4M44)
✅ QDVF ticker (ISIN: IE00B42NKQ00)
Be aware that the European listed ticker names vary from one exchange to another. I have listed the Xetra (German) tickers, but they have different names on the London exchange, for instance. In general, going by the ISIN code is safer than the ticker codes for ETFs in Europe.
➡️ See the full list of relevant ETFs for the strategy here.
Why no changes is a good thing
You may be wondering why the allocation is now the same for the third straight month. If this is a trading strategy, aren’t we supposed to trade?
Actually, it’s just a good sign. When the system sticks to the same allocation for several months, it’s usually a result of the same ETFs continuing to perform well. In most cases (like this) it means we’re making money.
My aim with this strategy was to keep the effort as low as possible, attempting to beat the market with as few annual trades as needed. I never wanted to be a day trader, but rather to build a system that would allow me to spend time on other things while it builds wealth.
Historically, the system has required an average of 9 allocation changes (selling one ETF for another). Roughly 4 for the sector and 5 for the factor. Months with no changes are very common with this setup, and I enjoy it every time it happens.
My opinion on the picks
I really try not to have an opinion on the selections the system gives me. But with the media, headlines, and recent market development in mind, it’s almost impossible.
It can be a real struggle to convince yourself to execute a trade that doesn’t match your current take on the market. And even though I have done this so many times over the years, it’s still not always easy.
Typically, when the system points to an ETF that has recently done well (like US Value at the moment), it feels good to continue with this. When it picks an ETF that has recently dipped (like Energy at the moment), it feels bad.
But as I’m sure you know, we can’t predict the future. And the truth is, we should try our best not to have an opinion on the outcome of the system or the direction of the markets. That’s what worked for me.
Don’t forget to subscribe for future trading signals, strategic investment insights, and occasional updates about my journey after I left the corporate world to follow my passions for investing, writing and building.
Thanks for reading!
Disclaimer: The MarketFighter Strategy is for educational and informational purposes only. It is not financial advice, and the author is not a licensed investment advisor. Investing in ETFs involves significant risk, and past performance is never a guarantee of future results. You are solely responsible for your own trades and financial outcomes. Read the full Disclaimer here.
Hi, since there is no change on the recommended tickers, is it reasonable to allocate some additional funds on them ?
Hello, I'm new here and plan on trying out your strategy as I really like it. Is it too late for me to enter on these 2 etfs for this month? Yesterday had a big sell-off so it may present a decent opportunity to get in.
Also, in the event of a drawdown event, how quickly does this system identify a rotation out of the etfs and is it communicated quickly here?