# Sector momentum rotation: Rules and Paper Record

> Sector momentum rotation: the rule, what it holds at the Nov 3, 2026 close, its signal and its paper record. A hypothetical ETF strategy.

Data as of Nov 3, 2026. Rebuilt every trading night.

Data as of Nov 3, 2026. Rebuilt every trading night.

## Sector momentum rotation

Each month hold the three of nine US sectors that gained most over six months.

At the Nov 3, 2026 close Sector momentum rotation is risk on and holds XLK 34%, XLV 33%, XLE 33%. Hypothetical back-test since 1999: +7.3% a year against SPY’s +8.2%, deepest fall −49.9%.

Hypothetical. No money is invested.

| Fund | Name | Weight |
| --- | --- | --- |
| XLK | State Street Technology Select Sector SPDR ETF | 33.8% |
| XLV | State Street Health Care Select Sector SPDR ETF | 33.2% |
| XLE | State Street Energy Select Sector SPDR ETF | 33.0% |

### The rule

- Each month hold the three of nine US sectors that gained most over six months.

- A rule reads the close of the last trading day of the month and trades at the next close.

- The universe is 9 funds; the benchmark is SPDR S&P 500 ETF Trust (SPY).

- It is checked at each month end.

Source: Jegadeesh, N. and Titman, S.; Moskowitz, T. J. and Grinblatt, M. (1993; 1999). Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency; Do Industries Explain Momentum?. Journal of Finance 48(1), 65-91; Journal of Finance 54(4), 1249-1290.

Computed by ETFIQ from Tiingo daily prices. Data sourced by Tiingo .

### Where to next

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Source: ETFIQ, independent ETF data. Recomputed nightly from public filings and prices.
Cite: ETFIQ Strategy Lab, Sector momentum rotation, data as of Nov 3, 2026. https://etfiq.com/models/strategies/sector-momentum/
Licence: https://etfiq.com/license/ Data ETFIQ computes is free to use with attribution: ETFIQ (etfiq.com). Issuer data stays under its owner's terms.
HTML: https://etfiq.com/models/strategies/sector-momentum/