Volatility structure: Elevated

How US sectors performed when volatility was elevated

Since Jan 3, 1983, the record reads this regime on 16.4% of trading days, across 365 episodes with a typical run of 3 sessions. Across those sessions since Dec 22, 1998, Utilities did best at +7.7% a year and Information Technology did worst at -14.5%, against -2.6% for the S&P 500.

Figures as of Sep 23, 2026 · recomputed every trading day

The regime in the record

Share of trading days
16.4%
Separate episodes
365
Typical run
3 sessions
Longest run
52 sessions
Last seen
Apr 13, 2026
Today
Not in force

Sector by sector

Annualised mean return on the session after each regime day. Sorted by the regime figure.

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
Utilities XLU+7.7%+5.4%+15.4%52%20.3%1,287
Energy XLE+3.6%+10.2%+11.3%50%31.4%1,287
Health Care XLV+2.8%+8.5%+10.6%51%20.1%1,287
Materials XLB-0.2%+8.5%+7.6%50%26.7%1,287
Consumer Staples XLP-0.3%+5.3%+7.5%49%16.9%1,287
Industrials XLI-1.3%+9.4%+6.5%50%24.5%1,287
Real Estate XLREsince 2015-1.3%+5%+10.2%51%23.1%440
Consumer Discretionary XLY-7.6%+10.4%+0.1%49%26.8%1,287
Financials XLF-9.4%+7.8%-1.7%49%30.4%1,287
Information Technology XLK-14.5%+12.4%-6.7%49%31.7%1,287
Communication Services XLCsince 2018-24.5%+12.3%-13.3%52%27.4%355

Context

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
S&P 500 SPY-2.6%+10.2%—50%21.2%1,593
Nasdaq 100 QQQsince 1999-13.9%+13.4%-5.3%51%34.7%1,245
Russell 2000 IWMsince 2000-8.1%+9.8%+2.2%49%27.4%1,161
Long Treasuries TLTsince 2002+14.9%+1%+25.8%54%15.9%1,031
Gold GLDsince 2004+29.5%+11.7%+38.5%56%17.5%898

How this regime is defined

Volatility structure reads Elevated in the daily regime record.

Method and limits

Descriptive statistics over the published regime record — not a backtest, a forecast or advice. Each regime day is credited with the NEXT session's return, so a regime never earns the move that revealed it. Returns are ETF price returns (dividends excluded), annualised as 252 × the mean session return; volatility likewise. Sector funds start in December 1998 (Real Estate in 2015, Communication Services in 2018); the regime record starts in 1980. Labels are the engine's as currently published and are recomputed when its method improves. A figure with fewer than 60 sessions is not shown.

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Questions

Which sectors did best when volatility was elevated?
Utilities +7.7%, Energy +3.6%, Health Care +2.8%. Annualised mean next-session returns since Dec 22, 1998; the S&P 500 returned -2.6%.
How common is this regime, and how long does it last?
It appears on 16.4% of trading days since 1983, in 365 separate episodes. The typical run is 3 sessions; the longest lasted 52 sessions.
Is this regime in force today?
No. It was last seen Apr 9, 2026 – Apr 13, 2026. The daily nine-axis reading is on the Regime Radar.
Is this a backtest?
No. It describes how assets behaved on the session after each day the regime was read, with no portfolio, costs or selection. A backtest would test a rule; this records a history.