Volatility structure: Normal

How US sectors performed when volatility was normal

Since Jan 3, 1983, the record reads this regime on 34.6% of trading days, across 385 episodes with a typical run of 8 sessions. Across those sessions since Dec 22, 1998, Energy did best at +18.6% a year and Utilities did worst at +3.3%, against +7.9% for the S&P 500.

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

The regime in the record

Share of trading days
34.6%
Separate episodes
385
Typical run
8 sessions
Longest run
42 sessions
Last seen
Sep 22, 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
Energy XLE+18.6%+10.2%+11%53%22.5%2,352
Communication Services XLCsince 2018+17.5%+12.3%+2.1%53%16.6%701
Materials XLB+11.8%+8.5%+4.2%53%18.7%2,352
Industrials XLI+11.6%+9.4%+4.1%54%16.2%2,352
Consumer Discretionary XLY+9.5%+10.4%+2%53%17.9%2,352
Information Technology XLK+8.2%+12.4%+0.7%54%20.7%2,352
Financials XLF+8.1%+7.8%+0.6%51%20%2,352
Consumer Staples XLP+6.9%+5.3%-0.6%52%13.1%2,352
Real Estate XLREsince 2015+5.5%+5%-8.8%53%15.7%975
Health Care XLV+4.7%+8.5%-2.9%52%14.5%2,352
Utilities XLU+3.3%+5.4%-4.3%52%15.4%2,352

Context

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
S&P 500 SPY+7.9%+10.2%—54%13.9%2,933
Nasdaq 100 QQQsince 1999+8%+13.4%+0.8%54%21.7%2,343
Russell 2000 IWMsince 2000+7.6%+9.8%-0.9%53%18.6%2,208
Long Treasuries TLTsince 2002-3.9%+1%-14.8%51%12.6%2,086
Gold GLDsince 2004+9.4%+11.7%-1%53%16.9%1,915

How this regime is defined

Volatility structure reads Normal 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 normal?
Energy +18.6%, Materials +11.8%, Industrials +11.6%. Annualised mean next-session returns since Dec 22, 1998; the S&P 500 returned +7.9%.
How common is this regime, and how long does it last?
It appears on 34.6% of trading days since 1983, in 385 separate episodes. The typical run is 8 sessions; the longest lasted 42 sessions.
Is this regime in force today?
No. It was last seen Sep 10, 2026 – Sep 22, 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.