Now that the year is coming to a close, we thought it would be a good idea to look back and see how some of the individual sectors have performed relative to one another. Tom Sosnoff and Tony Battista discuss all of the market sectors and their equivalent ETFs. The guys find out that Healthcare (XLV) has been the best performing sector this past year while Energy (XOP) has been the worst performing.

Next, the guys take the study one step further to find out the correlation of the most tradable ETFs to the S&P 500, Oil and the 10yr US Treasury Note. They find out some interesting information such as the fact that the energy sector (XOP) is more correlated to the S&P 500 (0.68) than it is to crude oil (0.56). They also find out that due to the large dividend that the utility sector issues, it is the only sector with a positive correlation to the 10yr Note.

Finally the guys look at one last study examining the top and bottom performing sectors against their respective benchmarks. They compare how the Healthcare sector has performed when the S&P moves 1% and how the Energy sector compares when Oil moves 1%. For Energy, they find that the ETF will have a smaller move than Oil and when there is a 1% down move, the ETF moves considerably more than if Oil move 1% up. This is different for the Healthcare sector as XLV tends to have a move that is slightly larger that 1% when the S&P 500 moves 1% in either direction!