We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wall Street was upbeat in October, with the S&P 500 adding 5.1% past month (as of Oct 30, 2022), the Dow Jones gaining as much as 10.7%, the Nasdaq increasing 1.3% and the Russell 2000 jumping 7.5%. Speculation that the Fed may slow down the rate hike momentum from December and decent corporate earnings probably gave a boost to the stock market. Plus, the fourth quarter has been historically upbeat for markets as several sales-boosting events are lined up in the busy holiday season.
Below, we highlight a few top-performing ETF areas of October.
Energy
S&P Oil & Gas Eqpt & Services SPDR (XES - Free Report) – Up 36.8%
Oil prices increased considerably in October as OPEC+ producers agreed on deep output cuts, seeking to spur a recovery in crude prices despite repeated calls from U.S. President Joe Biden’s administration for the group to pump more to lower fuel prices and contain global inflation.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to cut production targets by about two million barrels per day from November. Energy analysts had mostly expected the group to cut output in the range of 500,000 barrels and two million barrels, as quoted on CNBC. The fear of supply shortage boosted oil prices (read: Oil ETFs Up on Steep OPEC+ Output Cuts).
Carbon Allowance
Kraneshares European Carbon Allowance ETF (KEUA - Free Report) – Up 29.3%
iPath Series B Carbon ETN (GRN - Free Report) – Up 26.6%
Going green has become the mantra to save the earth. Governments around the world are focused on moving toward net-zero emissions by 2050 set by the 2015 Paris agreement. Some companies are trying to reduce their carbon footprint voluntarily.
Another way for companies to manage their carbon footprint is to buy and sell emission allowances. In the cap-and-trade system, a government sets a limit on overall emissions that is tightened over time. Big carbon emitters need to buy these pollution permits to stay under regularity caps. Such initiatives have boosted carbon-allowance exchange-traded products.
The Borsa Istanbul 100 Index has been in solid shape as investors continued to use equities as a hedge for surging prices and a falling lira. The central bank has been cutting rates continuously despite red-hot inflation. Turkey’s central bank cut its key interest rate by 150 basis points in October from 12% to 10.5% — despite Turkish inflation at more than 83%. This marked the third consecutive month of cuts and bolstered the equity market (read: This Emerging Market ETF Breezed Past S&P 500 in 2022).
Aerospace & Defense
US Aerospace & Defense iShares ETF (ITA - Free Report) – Up 17.3%
Aerospace and defense stocks have rallied lately with rising geopolitical tensions. The Russia-Ukraine war is unlikely to end soon, North Korean saber rattling has been on the rise, and China-Taiwan tensions have flared up since President Xi secured a third term in office. Rising geopolitical tensions could result in increased defense spending by the United States and its European allies as they try to counter the military ambitions of China and Russia.
Travel during the upcoming holiday season is expected to rebound greatly despite high inflation. After two years of travel bans, restrictions and lockdowns, Americans are set to hit the road. Thanksgiving and Christmas are normally two of the most traveled holidays in the fourth quarter.
According to Hopper's 2022 Holiday Travel Outlook released in September, the average price of a domestic plane ticket is $350 for Thanksgiving travel and $463 for Christmas travel. Thanksgiving prices are 22% higher than in 2019 and 43% more than in 2021. Christmas airfares are currently averaging 31% higher than 2019, and 39% higher than last year (read: Time to Buy Leisure & Travel ETFs?).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Best ETF Areas of October
Wall Street was upbeat in October, with the S&P 500 adding 5.1% past month (as of Oct 30, 2022), the Dow Jones gaining as much as 10.7%, the Nasdaq increasing 1.3% and the Russell 2000 jumping 7.5%. Speculation that the Fed may slow down the rate hike momentum from December and decent corporate earnings probably gave a boost to the stock market. Plus, the fourth quarter has been historically upbeat for markets as several sales-boosting events are lined up in the busy holiday season.
Below, we highlight a few top-performing ETF areas of October.
Energy
S&P Oil & Gas Eqpt & Services SPDR (XES - Free Report) – Up 36.8%
Vaneck Oil Services ETF (OIH - Free Report) – Up 35.3%
Oil prices increased considerably in October as OPEC+ producers agreed on deep output cuts, seeking to spur a recovery in crude prices despite repeated calls from U.S. President Joe Biden’s administration for the group to pump more to lower fuel prices and contain global inflation.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to cut production targets by about two million barrels per day from November. Energy analysts had mostly expected the group to cut output in the range of 500,000 barrels and two million barrels, as quoted on CNBC. The fear of supply shortage boosted oil prices (read: Oil ETFs Up on Steep OPEC+ Output Cuts).
Carbon Allowance
Kraneshares European Carbon Allowance ETF (KEUA - Free Report) – Up 29.3%
iPath Series B Carbon ETN (GRN - Free Report) – Up 26.6%
Going green has become the mantra to save the earth. Governments around the world are focused on moving toward net-zero emissions by 2050 set by the 2015 Paris agreement. Some companies are trying to reduce their carbon footprint voluntarily.
Another way for companies to manage their carbon footprint is to buy and sell emission allowances. In the cap-and-trade system, a government sets a limit on overall emissions that is tightened over time. Big carbon emitters need to buy these pollution permits to stay under regularity caps. Such initiatives have boosted carbon-allowance exchange-traded products.
Turkey
Turkey iShares MSCI ETF (TUR - Free Report) – Up 18.9%
The Borsa Istanbul 100 Index has been in solid shape as investors continued to use equities as a hedge for surging prices and a falling lira. The central bank has been cutting rates continuously despite red-hot inflation. Turkey’s central bank cut its key interest rate by 150 basis points in October from 12% to 10.5% — despite Turkish inflation at more than 83%. This marked the third consecutive month of cuts and bolstered the equity market (read: This Emerging Market ETF Breezed Past S&P 500 in 2022).
Aerospace & Defense
US Aerospace & Defense iShares ETF (ITA - Free Report) – Up 17.3%
Aerospace and defense stocks have rallied lately with rising geopolitical tensions. The Russia-Ukraine war is unlikely to end soon, North Korean saber rattling has been on the rise, and China-Taiwan tensions have flared up since President Xi secured a third term in office. Rising geopolitical tensions could result in increased defense spending by the United States and its European allies as they try to counter the military ambitions of China and Russia.
Airlines
US Global Jets ETF (JETS - Free Report) – Up 17.1%
Travel during the upcoming holiday season is expected to rebound greatly despite high inflation. After two years of travel bans, restrictions and lockdowns, Americans are set to hit the road. Thanksgiving and Christmas are normally two of the most traveled holidays in the fourth quarter.
According to Hopper's 2022 Holiday Travel Outlook released in September, the average price of a domestic plane ticket is $350 for Thanksgiving travel and $463 for Christmas travel. Thanksgiving prices are 22% higher than in 2019 and 43% more than in 2021. Christmas airfares are currently averaging 31% higher than 2019, and 39% higher than last year (read: Time to Buy Leisure & Travel ETFs?).