These 4 S&P 500 Sectors Could Outperform The Market In April, If History Has A Say

April tends to be a favorable month for U.S. equities, and history makes a compelling case for this. Over the past 95 years, the S&P 500 has gained an average of 1.1% in April, finishing higher 61% of the time.

In April, the index notched some of its most powerful monthly rallies in history, surging 43.6% in April 1933 and 17.9% in April 2020. Yet, it’s not always been a smooth ride — the worst April returns were a 20% crash in 1932 and a 9.5% drop in 1970.

Zooming in on the past three decades, April's track record becomes even more convincing.

The SPDR S&P 500 ETF Trust SPY, the benchmark ETF tracking the S&P 500, delivered an average gain of 1.9% over the last 30 Aprils, making it the second-best month of the year after November. SPY ended April in the green 77% of the time.

That said, 2025 has started on a cautious note. Through March 26, the S&P 500 is down about 3% year-to-date.

Yet history suggests a seasonal tailwind could soon be at play — especially in four specific sectors that have consistently outperformed the broader market in April.

Financials (XLF): Banks Lead The Earnings Charge

The Financial Select Sector SPDR Fund XLF has historically been April’s top-performing sector.

Since its inception in 1999, XLF has risen an average of 2.7% during the month, with gains coming in 65% of the time. The seasonal strength is largely tied to the first-quarter earnings season, which kicks off in April and is typically led by major banks. Optimism surrounding annual earnings outlooks often provides a boost.

XLF has already outperformed the broader market in 2025, gaining 4.5% year-to-date. Within the sector, JPMorgan Chase & Co. JPM stands out: Over the past 45 years, JPM shares have climbed an average of 2.6% in April, delivering positive returns 68% of the time.

Consumer Discretionary (XLY): Big Tech Retailers Deliver Spring Strength

The Consumer Discretionary Select Sector SPDR Fund XLY also posted a strong seasonal performance, rising 2.4% on average in April over the last 26 years. It has a 65% winning rate during the month.

April is historically the best month for Amazon.com Inc. AMZN, with an average gain of 7.6% and a 70% success rate.

Likewise, Tesla Inc. TSLA tends to accelerate this time of year, with April returns averaging 5.9%, making it the second-strongest month for the electric vehicle maker, behind only November's 11.9% surge.

Materials (XLB): A Solid Spring For Commodities And Chemicals

The Materials Select Sector SPDR Fund XLB also delivered strong April sector performers. XLB has risen an average of 3.1% in April over the past 26 years, with a 65% win rate. The ETF is up about 3% year-to-date, suggesting some early momentum heading into April.

One heavyweight in the materials space, Linde plc LIN — which represents roughly 20% of XLB's holdings — has consistently delivered in April. With 32 years of historical data, Linde has averaged a 3.5% gain in the month and ended April in positive territory 69% of the time.

Energy (XLE): The Strongest April Performer

Energy stocks have historically delivered the most robust gains in April, with the Energy Select Sector SPDR Fund XLE averaging a 4.1% return and closing the month higher 62% of the time.

Yet, it’s worth noting that this impressive figure is skewed by an extraordinary rebound in April 2020, when XLE surged nearly 30% following a historic 35% plunge in March 2020 — a period marked by collapsing oil prices and pandemic-driven market chaos.

Looking at long-term leaders within the sector, Exxon Mobil Corp. XOM shares have gained an average of 2.7% in April over the past 40 years, while Chevron Corp. CVX performed slightly better, rising 3.1% on average over the same period.

Below is a table showing each sector’s average performance in April.

ETF	Avg. April Return (%)
Real Estate Select Sector SPDR Fund XLRE	0.4%
Technology Select Sector SPDR Fund XLK	1.2%
Consumer Staples Select Sector SPDR Fund XLP	1.2%
Health Care Select Sector SPDR Fund XLV	1.6%
SPDR S&P 500 ETF Trust	1.9%
Communication Services Select Sector SPDR Fund XLC	1.95%
Utilities Select Sector SPDR Fund XLU	2.4%
Consumer Discretionary Select Sector SPDR Fund	2.4%
Industrials Select Sector SPDR Fund XLI	2.6%
Financial Select Sector SPDR Fund	2.7%
Materials Select Sector SPDR Fund	3.1%
Energy Select Sector SPDR Fund	4.07%