US Energy Sector: trend-following strategy vs buy & hold
Equities · tracked with Energy Select Sector SPDR (XLE)
XLE holds the energy companies of the S&P 500 — oil majors, drillers, refiners and pipeline operators, with the largest integrated oil companies carrying the biggest weights.
Growth of 100 since 1998
buy & hold · total returnBuy & hold total return of Energy Select Sector SPDR (XLE). The Strategy Alpha results and live signal for US Energy Sector are part of Plus.
What drives US Energy Sector
Oil and gas prices, production discipline, dividends and buybacks.
How a trend-following strategy handles US Energy Sector
Energy stocks follow the commodity cycle: long periods out of favour, followed by powerful rallies. Owning them only while the trend is up has historically made a large difference.
Our Strategy Alpha applies the same simple, rules-based trend filter to every market: invested while the trend is up, in Treasury bills while it is down, checked once a month. It is not a forecast — it is a discipline that aims to keep most of the long climbs and sit out the deepest drawdowns.
Related markets
Educational content, not investment advice. Backtested results are hypothetical and do not guarantee future results. Disclaimer.