Market Intelligence · ETF Sector Rotation Engine
Sector Rotation
Where leadership is moving, and whether the portfolio holds the sectors gaining or losing itData as of
Oct 5, 2026 · 4:00 PM ET
What changed
Relative strength leadership rotated from technology to utilities and staples, with health care and energy improving quietly behind them.
Why it matters
The portfolio is overweight the sector losing leadership and carries no position in two of the three sectors gaining it, so rotation and drift point in the same direction.
Watch / decide
Reducing technology toward its 15.0% target funds defensive exposure without changing the equity allocation itself.
Confidence 82%
Current leadership
XLU · Utilities
Rank 1 on relative strength
Regime fit favoured
Defensive
Volatility Transition, neutral → defensive
Sectors overweight
1
Against sector targets
Sectors underweight
5
Utilities, health care, energy
Relative return by period — select a row to investigate why the sector moved
Sector Rotation Heatmap
| Sector | 1W | 1M | 3M | 6M | YTD | 12M | Regime fit |
|---|---|---|---|---|---|---|---|
XLUUtilities | +1.6% | +4.2% | +6.4% | +5.1% | +7.8% | +3.9% | Defensive |
XLPConsumer Staples | +1.1% | +3.0% | +4.1% | +2.6% | +3.4% | +1.2% | Defensive |
XLVHealth Care | +0.4% | +1.5% | +2.0% | +1.1% | +2.8% | +4.4% | Defensive |
XLEEnergy | +0.7% | +1.2% | +1.8% | -0.4% | +2.2% | -1.6% | Cyclical |
XLFFinancials | +0.2% | +0.4% | +0.6% | +1.8% | +4.1% | +6.2% | Cyclical |
XLREReal Estate | -0.2% | -0.5% | -0.4% | -1.9% | -2.4% | -3.8% | Defensive |
XLBMaterials | -0.5% | -1.0% | -1.2% | -2.2% | -1.6% | -2.9% | Cyclical |
XLIIndustrials | -0.6% | -1.4% | -1.9% | -0.8% | +1.1% | +2.4% | Cyclical |
XLCCommunication Services | -1.2% | -2.6% | -3.3% | -1.4% | +3.2% | +8.1% | Cyclical |
XLYConsumer Discretionary | -1.4% | -3.1% | -4.1% | -3.6% | -1.8% | +1.4% | Cyclical |
XLKTechnology | -1.9% | -4.6% | -6.4% | +2.1% | +9.4% | +18.6% | Cyclical |
Values are total return relative to the broad market over each period. Rows are ordered by current momentum rank, so leadership rotation reads top to bottom.
Where capital moved over four weeks
Flow Reading
Utilities+$3.1B inflow
Consumer staples+$1.7B inflow
Health care+$0.6B inflow
Technology-$4.3B outflow
Consumer discretionary-$2.4B outflow
Flow and relative strength agree, which is the condition that distinguishes a rotation from a short-term reversal.
Rotation against current exposure
Portfolio Consequence
Technology (aggregate sector)18.7% vs 15.0% target · 17.0% max
Technology rank11 of 11
Utilities1.6% vs 2.5% target
Health care7.6% vs 8.0% target
Energy2.4% vs 3.0% target