Sector Rotation Data Shows 100-Point Gap Between Best and Worst in Same Year
An analysis of the eleven SPDR sector ETFs from 2021 to 2026 reveals that broad market summaries can mask dramatic performance differences between individual sectors. In 2022, the best-performing sector, Energy, gained 64.3% while the worst, Communication Services, lost 37.6% — a spread exceeding 100 percentage points within the same calendar year. The data also shows that last year's top sector frequently fails to repeat, with Energy falling from first place in 2022 to ninth in 2023. Conversely, the previous year's worst sector sometimes rebounds sharply, as Communication Services did in 2023 with a 52.8% gain after finishing last in 2022. The findings, based on only five year-to-year handoffs, are too limited to establish a reliable pattern but clearly illustrate how quickly sector rankings can shift.
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