XLE observed max drawdown: 63.9%
Energy Select Sector SPDR. From its 2014-06-30 peak, XLE fell 63.9% to the 2020-03-31 trough and needed 7.8 years to make a new high (2022-03-31). Computed from 334 months of observed fund history. Fund inception boundary (first available fund observation): 1998-12-22; the monthly analysis runs from 1998-12-31 through 2026-09-30.
Before 1998-12-22, the extended history is simulated. Observed fund drawdowns come first; simulation assumptions and results are separated below.
What is XLE's observed maximum drawdown?
XLE's observed maximum drawdown was 63.9%, from a peak in 2014-06-30 to a trough in 2020-03-31, based on monthly closes from fund prices first observed on 1998-12-22. The sample contains 334 monthly observations through 2026-09-30. Monthly closes can miss deeper daily losses.
| Measure | Value |
|---|---|
| Maximum drawdown | -63.9% |
| Peak | 2014-06-30 |
| Trough | 2020-03-31 |
| Recovered | 2022-03-31 |
| Monthly observations | 334 |
Last verified
What is XLE's observed maximum drawdown?
XLE's observed maximum drawdown was 63.9%, from a peak in 2014-06-30 to a trough in 2020-03-31, based on monthly closes from fund prices first observed on 1998-12-22.
How long did XLE take to recover from its worst drawdown?
XLE took 7.8 years from the 2014-06-30 peak to make a new high in 2022-03-31, based only on observed fund prices.
What was XLE's worst 12-month return?
XLE's worst observed rolling 12-month return was -52.3%, in the 12 months ending 2020-03-31.
XLE observed fund drawdown statistics
2014-06-30 peak to 2020-03-31 trough.
New high reached 2022-03-31.
Share of all months spent below a prior high.
Rolling year ending 2020-03-31.
The biggest XLE drawdowns in observed fund history
| Depth | Peak | Trough | Recovered | Peak to trough | Total underwater |
|---|---|---|---|---|---|
| -63.9% | 2014-06-30 | 2020-03-31 | 2022-03-31 | 69 mo | 7.8 years |
| -53.1% | 2008-06-30 | 2009-02-28 | 2013-07-31 | 8 mo | 5.1 years |
| -35.7% | 2001-04-30 | 2002-09-30 | 2004-07-31 | 17 mo | 3.3 years |
| -17.1% | 2022-05-31 | 2022-06-30 | 2022-10-31 | 1 mo | 5 months |
| -14.4% | 2024-11-30 | 2025-04-30 | 2026-01-31 | 5 mo | 14 months |
Methodology: observed XLE fund prices only, first available from 1998-12-22. Monthly closing-price statistics cover 1998-12-31 through 2026-09-30; no proxy or pre-inception simulation is included in this table. Educational information, not investment advice.
Before 1998-12-22: simulated from the underlying index with assumptions
This separate series combines observed prices with a modeled pre-inception extension from 1970-01-31 through 2026-10-31. The 2026-10-31 endpoint is the legacy current partial-month bucket/month-end label, not evidence that XLE was observed through that future date. It is not observed XLE performance. The API's observed boundary is 1998-12-22; observed monthly statistics run from 1998-12-31 through 2026-09-30.
- Rebalancing convention: monthly rebalance at month-end close; drawdown statistics use monthly closing prices.
- Proxy source for XLE: FSENX (proxy_etf), from 1985-01-02 to 1998-12-21.
- Proxy source for XLE: FF_ENERGY_DAILY (static), from 1926-06-30 to 1984-12-31.
- Proxy source for SPY: VFINX (proxy_etf), from 1987-01-06 to 1993-01-28.
- Proxy source for SPY: SP500_TR_DAILY (static), from 1976-08-31 to 1987-01-05.
- Proxy source for SPY: spy_tr (static_monthly), from 1900-01-31 to 1976-08-30.
Modeled extended statistics
2014-06-30 peak to 2020-03-31 trough.
New high reached 2022-03-31.
Share of all months spent below a prior high.
Rolling year ending 2020-03-31.
For context, SPY (the S&P 500 baseline) had a maximum drawdown of 50.8% over the same kind of monthly-close analysis.
Modeled extended drawdowns
| Depth | Peak | Trough | Recovered | Peak to trough | Total underwater |
|---|---|---|---|---|---|
| -63.9% | 2014-06-30 | 2020-03-31 | 2022-03-31 | 69 mo | 7.8 years |
| -53.1% | 2008-06-30 | 2009-02-28 | 2013-07-31 | 8 mo | 5.1 years |
| -48.8% | 1980-11-30 | 1982-07-31 | 1985-03-31 | 20 mo | 4.3 years |
| -36.3% | 1973-12-31 | 1974-09-30 | 1975-06-30 | 9 mo | 18 months |
| -35.7% | 2001-04-30 | 2002-09-30 | 2004-07-31 | 17 mo | 3.3 years |
Monthly closing prices, peak-to-trough on total return where available. The pre-inception segment is a reconstruction, not a live fund record, and actual tracking, financing, taxes, spreads, and volatility drag can differ.
Drawdowns are the reason tactical strategies exist
Buy-and-hold XLE means living through every number on this page. BestFolio tracks published TAA strategies whose whole job is cutting these drawdowns, with out-of-sample track records.