Rotation, rotation, rotation

As highlighted in our November 10th The Sector Edge, the U.S. equity market is rotating away from Growth into other pockets of the market.

Healthcare, Energy, and Financials leadership over the last month and last week

S&P 500 GICs level 1 sector ETFs that are showing leadership over the last month are Healthcare (XLV), Energy (XLE), and Financials (XLF). This means that the Growth sector ETFs - Technology (XLK), Communication Services (XLC), and Discretionary (XLY) - have taken a back seat on a relative basis over the last month.

Chart 1: 1-month returns for the 11 GICs level 1 sector ETFs and the S&P 500

Healthcare, Energy, and Financials also leadership over the last week

XLV, XLE, and XLF are also leading the S&P 500 over the last week, along with Materials (XLB), Staples (XLP), and Real Estate (XLRE) as the Growth sectors ETFs continue to take a back seat and lag the broader U.S. equity market. As of this post, the SPX is up over the last week, but XLC, XLK, and XLY are all trading lower.

Chart 2: 1-week returns for the 11 GICs level 1 sector ETFs and the S&P 500