Group 1 - The core concept of industry rotation strategy is to profit from structural market trends by switching between different industry sectors to maximize investment returns or mitigate systemic risks [1] - Industry rotation strategies are particularly effective in market environments where there are significant differences in returns among various industries during the same time period [1] Group 2 - Utilizing ETFs for industry rotation offers several advantages, including simplicity of operation, as investors can easily gain exposure to a basket of stocks representing an industry without the need to buy multiple individual stocks [2] - ETFs provide transparency in holdings, with daily disclosures of their portfolios, allowing investors to clearly understand their investments, unlike actively managed equity funds which may have delayed reporting [2] - The cost-effectiveness of ETFs is highlighted, as they can be traded at any time during the trading day, and generally have lower fees compared to traditional actively managed funds, enhancing investor returns [2] Group 3 - The method for constructing an industry rotation strategy using ETFs involves scoring ETFs based on a series of industry selection indicators, selecting those with higher scores for allocation, and making regular adjustments [3] - The scoring process includes evaluating the performance of the underlying stocks in terms of fundamentals, technicals, and capital flows, leading to an overall score for the ETF [3]