At a glance
SECT charges 0.73% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $2.78B in assets, the 2nd largest of that group; it paid 0.68% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +11.7% with distributions reinvested (S&P 500: +11.5%), 4th of those 8 funds; over three years it returned +21.9% a year. At its worst it fell 38.1% in the 2020 crash (S&P 500: 33.7%) and 21.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 18 months after the lows.
The short version
Main Sector Rotation ETF (SECT) is an actively managed fund of funds. Instead of buying stocks directly, it holds a handful of U.S. sector ETFs picked by Main Management, and it may sell options on them for extra income. It aims to beat the S&P 500 when markets rise and lose less when they fall. Even so, it trailed that index over five years through December 31, 2025, and fell 38% in the 2020 crash.
Price history
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SECT +11.7% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SECT official prospectus, to Dec 31, 2025 | — | +17.90% | — | +13.73% | — | +13.15% |
| S&P 500 Total Return Index index, same period | — | +17.88% | — | +14.42% | — | +14.99% |
| SECT price data to Oct 27, 2026 | +12.2% | +11.7% | +21.9% | +11.8% | — | +13.3% |
- Over the year to Oct 27, 2026, SECT returned +11.7%, 4th of 8 among similar funds.
- Its 5-year annualized return was +11.8%.
- In the 2020 COVID crash it fell 38.1% and regained its old high 4.8 months after the low.
- Its worst full calendar year was 2022 (-12.8%); its best was 2021 (+28.9%).
- The deepest fall in its price history was 38.1% (Feb 20, 2020 to Mar 23, 2020), recovered by Aug 17, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +12.2% | — |
| 2025 | +17.8% | +17.90% |
| 2024 | +18.6% | +18.47% |
| 2023 | +21.1% | +21.03% |
| 2022 | -12.8% | -12.69% |
| 2021 | +28.9% | +28.88% |
| 2020 | +15.7% | +15.36% |
| 2019 | +28.1% | +27.86% |
| 2018 | -9.7% | -9.30% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 37.9% over that stretch · deepest drop along the way 38.1%, back to its old high 4.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 19.8% over that stretch · deepest drop along the way 21.6%, back to its old high 17.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.3900 | |
| 2025 | $0.2000 | -20.0% |
| 2024 | $0.2500 | -37.5% |
| 2023 | $0.4000 | +21.2% |
| 2022 | $0.3300 | +22.2% |
| 2021 | $0.2700 | -44.9% |
| 2020 | $0.4900 | +96.0% |
| 2019 | $0.2500 | -40.5% |
| 2018 | $0.4200 |
What's inside
As of Jul 31, 2026, the fund held 8 securities; the ten largest made up 99.56% of assets.
| Fund held | Weight | |
|---|---|---|
| SS TECH SEL SECT | 38.39% | |
| SS FINANCIAL SEL | 19.67% | |
| SS INDUSTRIAL | 12.44% | |
| SS CONSUMER DISC | 9.03% | |
| INVES NASDAQ 100 | 6.08% | |
| SS UTILITIES SEL | 6.02% | |
| SS ENERGY SELECT | 4.01% | |
| SS MATERIALS ETF | 3.91% |
By country
United States 99.56%By asset type
Stocks 99.56%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $80.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +6.80%, +1.28%, -2.75%.
How it works
SECT does not track an index. Its adviser, Main Management ETF Advisors, LLC, uses the Global Industry Classification Standard (GICS), a common system that sorts companies into sectors such as energy, financials and technology. The adviser studies growth forecasts, inflation and other economic trends over a 6- to 18-month horizon. It then holds more than its benchmark's share of sectors it judges undervalued, and less of others. It picks U.S. sector ETFs to carry out those views by comparing each fund's index, holdings, trading volume and tracking error (how closely it follows its index). It sells a holding once it reaches the adviser's target price.
The result is a short list. As of July 31, 2026, eight ETFs made up 99.56% of assets. Seven were State Street Select Sector funds: technology (38.4%), financials (19.7%), industrials (12.4%), consumer discretionary (9.0%), utilities (6.0%), energy (4.0%) and materials (3.9%). The eighth was an Invesco Nasdaq-100 fund (6.1%). Portfolio turnover, the share of holdings replaced in a year, was 23%.
The fund may also sell options. Selling covered calls on 0% to 100% of its ETF shares brings in cash up front but gives up gains above a set price. Selling cash-secured puts commits it to buy shares at a set price. It reported no option positions as of July 31, 2026. It may also put up to 15% of assets in SEC-registered bitcoin ETFs.
What it really costs
- SECT charges 0.73% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Of that, 0.5% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $75 in the first year and $906 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SECT | $75 | $233 | $406 | $906 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It is a concentrated, actively managed bet on a few U.S. sectors, with 38% in technology as of July 31, 2026, and a one-year beta of 1.11 as of October 27, 2026, meaning it has moved slightly more than the market.
SECT aims to limit losses, but it has still fallen hard in sell-offs. It launched in 2017, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 38.1% in about a month and recovered by August 17, 2020, 4.8 months later. In the 2022 bear market it fell 21.6% and took 17.5 months, until December 1, 2023, to get back to its peak. Its worst calendar year was 2022, at -12.69%. A retiree who had to sell shares during drops like these would lock in the losses. Income is small: the trailing yield was 0.68% as of October 27, 2026, paid quarterly. Costs are 0.73% a year, or $906 over 10 years on $10,000 under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want an adviser to move money among U.S. sector ETFs rather than hold a fixed index, and who accept 0.73% a year for that.
- Holders comfortable with heavy technology and financials exposure: 38% and 20% of assets as of July 31, 2026.
- Long-term investors who can sit through drops like the 38% fall in 2020 and the 17.5-month recovery after the 2022 decline.
Look elsewhere if
- Retirees seeking regular income: the trailing yield was 0.68% as of October 27, 2026, paid quarterly.
- Investors who want a defined limit on losses; unlike buffer ETFs such as BUFR, SECT offers no set downside protection.
- Cost-focused index investors: through December 31, 2025, SECT trailed the S&P 500 over five years and since launch, while charging 0.73%.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| SECT this fund | 0.73% | $2.78B | +11.7% | +21.9% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Is SECT good for retirement?
SECT may suit a small, higher-risk part of a retirement portfolio rather than its core. It holds only U.S. stock funds, is concentrated in a few sectors, and had a one-year beta of 1.11 as of October 27, 2026. It fell 38.1% in the 2020 crash and needed 17.5 months to recover from its 2022 decline. Its 0.68% trailing yield, paid quarterly, provides little income.
Does SECT beat the S&P 500?
Not over longer periods so far. As of December 31, 2025, SECT returned 17.9% over one year, about the same as the 17.88% for the S&P 500 Total Return Index. Over five years it averaged 13.73% a year against 14.42% for the index. Since its 2017 launch it averaged 13.15% against 14.99%. The fund's returns are after its 0.73% expense ratio, while the index's returns include no costs.
What does SECT hold?
SECT holds other ETFs, not individual stocks. As of July 31, 2026, eight funds made up 99.56% of assets. The largest were State Street's Select Sector funds for technology (38.4%), financials (19.7%), industrials (12.4%) and consumer discretionary (9.0%). It also held an Invesco Nasdaq-100 fund (6.1%) and sector funds for utilities (6.0%), energy (4.0%) and materials (3.9%). Holdings can shift as the adviser changes its sector views.
Does SECT sell covered calls?
It can, but not all the time. The prospectus allows it to sell covered calls or index options on 0% to 100% of its ETF shares, and cash-secured puts against its cash. Calls bring in premium income but give up gains above a set price. The fund reported no option positions as of July 31, 2026. Option income is usually taxed as ordinary income rather than as qualified dividends.
Is SECT cheaper than buffer ETFs like BUFR?
Yes, but the two follow different strategies. SECT's expense ratio is 0.73%. BUFR and BUFD charge 0.95%, Innovator's Power Buffer funds 0.79% and FT Vest's U.S. Equity Buffer funds 0.85%. Buffer ETFs use options to cushion a set amount of loss and cap gains over a fixed period. SECT has no such limit. As of October 27, 2026, SECT's three-year return was 21.9% a year, compared with 16.8% for BUFR.