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Best & Worst Performing ETFs of Q3 2022

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The S&P 500 Index was down 5.3% in the third quarter, its third consecutive quarter of losses for the first time since the 2008-09 financial crisis. The Dow plunged 6.7% and the tech-heavy Nasdaq lost 4.1%.

Consumer Discretionary was the best performing sector with a gain of 3.6%, followed by Energy up just 0.7%. Real Estate and Communication Services were the worst performing sectors, down about 12% each.

Clean energy funds were among the top performing ETF areas as the war in Ukraine has accelerated the transition to renewal energy. These will also benefit from the Inflation Reduction Act of 2022 (IRA), which provides $370 billion to combat climate change and would be the biggest climate spending package in US history.

The ALPS Clean Energy ETF (ACES - Free Report) holds US and Canadian clean energy companies. Enphase Energy (ENPH - Free Report) , First Solar (FSLR - Free Report) , Tesla (TSLA - Free Report) and Rivian Automotive (RIVN - Free Report) are among the top holdings in the fund, which gained about 14% in the quarter.

The Simplify Interest Rate Hedge ETF (PFIX - Free Report) seeks to hedge interest rate movements arising from rising long-term interest rates and to benefit from market stress when fixed income volatility increases. The ETF was up almost 20% in Q3. (ETFs to Hedge Against Market Volatility)

Shipping costs have plunged as the global economy slows significantly. The Breakwave Dry Bulk Shipping ETF (BDRY - Free Report) sank 47% in the quarter. The ETF, which holds dry bulk freight futures, had skyrocketed in the first half of 2021, thanks to pandemic-induced supply chain disruptions.

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