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.
The year 2022 has been all about surging global inflation due to supply-chain issues, the Russia-Ukraine war, high energy prices, a commodity super-cycle, a super-hawkish Fed, rising rates across the globe, risk-off trade sentiments and a global market crash.
The S&P 500 is off about 17%, the Dow Jones has retreated 7.1%, the Nasdaq has lost 28.8%, the Russell 2000 has fallen 17.6% this year (as of Nov 18, 2022).
Against this backdrop, below we highlight a few ETF areas that bucked the losing trend and emerged winners.
Energy
Credit Suisse S&P MLP Index ETN – Up 118.2%
Invesco Dynamic Energy Exploration & Production ETF (PXE - Free Report) – Up 79.2%
Oil prices have been in decent shape lately with WTI crude ETF United States Oil Fund LP (USO) gaining 25% this year mainly on geopolitical tension in East Europe, OPEC+ output cuts and demand recovery due to economic reopening. Prices increased considerably as OPEC+ producers agreed on Oct 5 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 interest rate hedge corner of the fixed-income market has been an area to watch lately due to rising interest rates. Investors are flocking to PFIX and RRH to combat rising rate worries. The Fed has hiked rates massively this year. Federal Reserve Bank of Atlanta President Raphael Bostic recently said that he was comfortable to retreat from 75-basis-point increases at the next meeting but declared that rates may reach 4.75%-5% before the Fed is done with its current tightening cycle.
Defensive ETF
KFA Mount Lucas Managed Futures Index Strategy ETF (KMLM - Free Report) – Up 32.3%
AGFiQ US Market Neutral Anti-Beta Fund (BTAL - Free Report) – Up 15.2%
As risk-off trade sentiments prevailed this year, defensive investments gained momentum. Rising rate concerns are rife globally. And this concern is not likely to go away soon. Hence, equity market volatility is here to stay for some time. As a result, investors are likely to consider alternative assets to protect their portfolios against volatility.
Commodities
iPath Series B Bloomberg Nickel Subindex Total Return ETN – Up 24.7%
iShares U.S. ETF Trust iShares GSCI Commodity Dynamic Roll Strategy ETF (COMT - Free Report) – Up 21.2%
After a decade of underperformance, commodities are experiencing a huge rally due to the Russia-Ukraine war, sky-high inflation, pent-up demand after the COVID-19 pandemic and widespread vaccination. From crude to metals to crops, commodities performed great in 2022 as investors betted big on inflationary expectations and eyeing everything that provide hedges for inflation. Especially, the agricultural commodity market has been an area to watch lately, given worries over the growing global food crisis and rising prices.
WisdomTree US High Dividend Fund (DHS - Free Report) – Up 8.6%
Dividend-paying companies are usually good for value investing and are in demand when volatility flares up. Investors have two options in this field – one with steady dividend growth (or dividend aristocrats) and the other with high yield. Companies that raise dividend regularly appear steadier than those that offer higher yields. But then high-yielding ones also make up for the capital losses to a large-extent, if there is any. Several dividend ETFs offered better returns than the S&P 500 this year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Be Thankful to These ETF Areas in 2022
The year 2022 has been all about surging global inflation due to supply-chain issues, the Russia-Ukraine war, high energy prices, a commodity super-cycle, a super-hawkish Fed, rising rates across the globe, risk-off trade sentiments and a global market crash.
The S&P 500 is off about 17%, the Dow Jones has retreated 7.1%, the Nasdaq has lost 28.8%, the Russell 2000 has fallen 17.6% this year (as of Nov 18, 2022).
Against this backdrop, below we highlight a few ETF areas that bucked the losing trend and emerged winners.
Energy
Credit Suisse S&P MLP Index ETN – Up 118.2%
Invesco Dynamic Energy Exploration & Production ETF (PXE - Free Report) – Up 79.2%
Oil prices have been in decent shape lately with WTI crude ETF United States Oil Fund LP (USO) gaining 25% this year mainly on geopolitical tension in East Europe, OPEC+ output cuts and demand recovery due to economic reopening. Prices increased considerably as OPEC+ producers agreed on Oct 5 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.
Rate Hedge ETF
Simplify Interest Rate Hedge ETF (PFIX - Free Report) – Up 83.8%
Advocate Rising Rate Hedge ETF – Up 39.1%
The interest rate hedge corner of the fixed-income market has been an area to watch lately due to rising interest rates. Investors are flocking to PFIX and RRH to combat rising rate worries. The Fed has hiked rates massively this year. Federal Reserve Bank of Atlanta President Raphael Bostic recently said that he was comfortable to retreat from 75-basis-point increases at the next meeting but declared that rates may reach 4.75%-5% before the Fed is done with its current tightening cycle.
Defensive ETF
KFA Mount Lucas Managed Futures Index Strategy ETF (KMLM - Free Report) – Up 32.3%
AGFiQ US Market Neutral Anti-Beta Fund (BTAL - Free Report) – Up 15.2%
As risk-off trade sentiments prevailed this year, defensive investments gained momentum. Rising rate concerns are rife globally. And this concern is not likely to go away soon. Hence, equity market volatility is here to stay for some time. As a result, investors are likely to consider alternative assets to protect their portfolios against volatility.
Commodities
iPath Series B Bloomberg Nickel Subindex Total Return ETN – Up 24.7%
iShares U.S. ETF Trust iShares GSCI Commodity Dynamic Roll Strategy ETF (COMT - Free Report) – Up 21.2%
After a decade of underperformance, commodities are experiencing a huge rally due to the Russia-Ukraine war, sky-high inflation, pent-up demand after the COVID-19 pandemic and widespread vaccination. From crude to metals to crops, commodities performed great in 2022 as investors betted big on inflationary expectations and eyeing everything that provide hedges for inflation. Especially, the agricultural commodity market has been an area to watch lately, given worries over the growing global food crisis and rising prices.
Dividends
Invesco S&P Ultra Dividend Revenue ETF (RDIV - Free Report) – Up 9.2%
WisdomTree US High Dividend Fund (DHS - Free Report) – Up 8.6%
Dividend-paying companies are usually good for value investing and are in demand when volatility flares up. Investors have two options in this field – one with steady dividend growth (or dividend aristocrats) and the other with high yield. Companies that raise dividend regularly appear steadier than those that offer higher yields. But then high-yielding ones also make up for the capital losses to a large-extent, if there is any. Several dividend ETFs offered better returns than the S&P 500 this year.