Relative rotation graph: 23 US sector and industry ETFs vs SPY
A relative rotation graph (RRG) plots each fund's strength relative to a benchmark against the momentum of that strength, so an entire universe can be read on one chart. The format was created by Julius de Kempenaer of RRG Research — Relative Rotation Graphs® is his registered trademark, and the official charts live on platforms such as Bloomberg and StockCharts. The exact JdK formula is proprietary, so this page does what this site always does: publishes an approximation and the full recipe for it, rebuilt nightly from daily closes.
S&P 500 sector ETFs vs SPY
| ETF | Tracks | RS-Ratio | RS-Momentum | Quadrant |
|---|---|---|---|---|
| XLE | Energy | 100.81 | 99.58 | Weakening |
| XLK | Technology | 100.64 | 101.60 | Leading |
| XLC | Communication Services | 100.05 | 98.08 | Weakening |
| XLF | Financials | 99.81 | 98.35 | Lagging |
| XLB | Materials | 99.43 | 98.55 | Lagging |
| XLP | Consumer Staples | 99.37 | 98.40 | Lagging |
| XLV | Health Care | 99.36 | 98.47 | Lagging |
| XLY | Consumer Discretionary | 99.12 | 98.85 | Lagging |
| XLRE | Real Estate | 98.62 | 98.13 | Lagging |
| XLU | Utilities | 98.61 | 99.56 | Lagging |
| XLI | Industrials | 98.19 | 100.78 | Improving |
Industry ETFs vs SPY
| ETF | Tracks | RS-Ratio | RS-Momentum | Quadrant |
|---|---|---|---|---|
| IGV | Software | 101.34 | 101.56 | Leading |
| XOP | Oil & Gas E&P | 101.12 | 99.47 | Weakening |
| GDX | Gold Miners | 99.28 | 98.43 | Lagging |
| XBI | Biotech | 99.23 | 98.37 | Lagging |
| SMH | Semiconductors | 99.05 | 101.21 | Improving |
| XRT | Retail | 98.87 | 98.30 | Lagging |
| KWEB | China Internet | 98.71 | 99.19 | Lagging |
| ITA | Aerospace & Defense | 98.64 | 101.38 | Improving |
| KRE | Regional Banks | 98.52 | 100.47 | Improving |
| TAN | Solar | 98.27 | 100.79 | Improving |
| XHB | Homebuilders | 98.12 | 98.85 | Lagging |
| JETS | Airlines | 98.08 | 99.27 | Lagging |
How to read the four quadrants of an RRG chart
Both axes are centered at 100. The horizontal axis (JdK RS-Ratio) asks: has this fund been outperforming the benchmark? The vertical axis (JdK RS-Momentum) asks: is that relative performance currently improving or fading? Crossing the two gives four states: Leading (outperforming, still improving), Weakening (outperforming, but fading), Lagging (underperforming, still deteriorating) and Improving (underperforming, but recovering). Because momentum tends to turn before the strength line itself does, trails tend to rotate clockwise — which is why the format is read as a picture of rotation rather than a ranking.
The exact formula this page uses
The official JdK normalization has never been published, so every free implementation is an approximation. Ours, in full — the same arithmetic the nightly export runs, nothing hidden:
RS = 100 × log(price ÷ SPY price) # daily closes, split-adjusted RS-Ratio = SMA3( 100 + z(RS, 10 trading days) ) RS-Mom = SMA3( 100 + z(ΔRS-Ratio over 5 days, 10 days) ) z(x, n) = (x − rolling mean) ÷ rolling standard deviation
This reproduces the quadrant logic and the clockwise rotation. It will not match Bloomberg's official JdK values point for point, and we say so rather than pretend otherwise. The window (10 trading days) makes this a fast-turning, short-horizon picture; official RRGs are usually drawn on weekly data and turn more slowly.
What this chart does not tell you
An RRG is a rear-view mirror, drawn well. Every value on it is computed from prices that have already printed, so a fund entering the Leading quadrant is a statement about the recent past, not a forecast. We have not measured whether these quadrant states predict anything — no win-rates, no forward returns — and until such a measurement exists on this site, none will be quoted. That is the same rule the rest of this site runs on: numbers we measured, or no numbers.
Questions this page answers
What is a relative rotation graph (RRG)?
A relative rotation graph is a scatter chart that plots every member of a universe — here 23 US sector and industry ETFs — against one benchmark (SPY) on two axes: relative strength (JdK RS-Ratio, horizontal) and the momentum of that relative strength (JdK RS-Momentum, vertical). Each fund leaves a trail as both values evolve, and because momentum tends to turn before strength does, trails tend to move clockwise through the four quadrants. The visualization was created by Julius de Kempenaer of RRG Research; Relative Rotation Graphs® is a registered trademark, and official RRG charts are distributed through platforms such as Bloomberg and StockCharts.
What are JdK RS-Ratio and JdK RS-Momentum?
JdK RS-Ratio measures how a security has performed relative to the benchmark, normalized so that 100 means "in line with the benchmark" — above 100 is relative strength, below 100 is relative weakness. JdK RS-Momentum applies the same idea to the RS-Ratio line itself: above 100 means relative strength is currently improving, below 100 means it is fading. The two together place a security in one of four quadrants: Leading (strong and strengthening), Weakening (strong but fading), Lagging (weak and weakening), Improving (weak but recovering).
Is there a public formula for the RRG calculation?
No — the exact JdK normalization is proprietary and has never been published. Every open implementation, including this page, approximates it. Ours is stated in full above: relative strength is 100 × log(price ÷ benchmark price), the RS-Ratio is that series normalized by a rolling 10-trading-day z-score re-centered at 100, RS-Momentum is a 5-day difference of the RS-Ratio normalized the same way, and both are smoothed with a 3-day average. This reproduces the quadrant logic and the clockwise rotation, but the numbers will not match Bloomberg's official JdK values point for point.
Where can I see a relative rotation graph for free?
This page publishes one free, with no key and no login: 23 US sector and industry ETFs versus SPY, recomputed nightly from daily closes and shown with 21-day trails. The official RRG tools live on paid platforms (Bloomberg, StockCharts, Optuma and others); this page is an independent approximation whose full method is printed alongside the chart.
Can an RRG chart tell you which sector will outperform?
No, and this page does not try. An RRG is a lagging, descriptive picture: it summarizes what relative performance has already done, not what it will do. We have not measured any predictive power for these quadrants, so no such claim appears here — that is deliberate. The honest use is orientation: seeing which sectors have been gaining or losing ground against the index, and how fast that picture has been changing. Nothing on this page is investment advice.
How to cite this
the nightly RRG readings (RS-Ratio, RS-Momentum and quadrant per ETF, as of 2026-09-01) Free to read, no key and no account — link straight to it. The figures are recomputed nightly, so include the date you read them.
Plain text
Quant Data. "Relative rotation graph, 23 US sector and industry ETFs vs SPY." quantdata.uk, figures as of 2026-09-01. https://quantdata.uk/research/relative-rotation-graph (accessed <date>).BibTeX
@misc{quantdata-rrg,
author = {Quant Data},
title = {Relative rotation graph, 23 US sector and industry ETFs vs SPY},
year = {2026},
howpublished = {\url{https://quantdata.uk/research/relative-rotation-graph}},
note = {Figures recomputed nightly; this snapshot 2026-09-01}
}Permanent link
https://quantdata.uk/research/relative-rotation-graphQuoting a figure from this page is fine without asking. If you want the underlying per-observation table for something we have not published, or you spot a number you think is wrong, mail quantdata@quantdata.uk — a corrected number is worth more to us than a cited one.