November has been a good month for the U.S. stock market. Hopes of smaller interest rate hikes from December thanks to a slight decline in inflation renewed investors’ risk-on trading. However, renewed COVID-19 outbreaks in China and the resultant lockdowns as well as a weakening global growth outlook continued to weigh on sentiments.
Additionally, the holiday season started on a strong note despite concerns about inflation and higher prices. Consumers spent a record $9.12 billion, up 2.3% year over year, on online shopping during Black Friday this year, according to Adobe.
Holiday spending is expected to be healthy despite inflationary challenges, with retail sales likely to grow 6-8% from the 2021 level during November and December to $942.6-$960.4 billion, per the National Retail Federation. Holiday online sales are forecast to increase 10-12% to $262.8-$267.6 billion, up from $238.9 billion in 2021.
Overall, the S&P 500, the Dow Jones, the Nasdaq and the Russell 2000 gained 8.5%, 7.6%, 9% and 5.5%, respectively past month. Against this backdrop, below we highlight a few winning ETF areas of November.
CS S&P MLP Index ETN (
MLPO Quick Quote MLPO - Free Report) – Up 191.6%
MLPs have relatively consistent cash flows, making them less risky than the other plays in the broader energy space. These represent an attractive investment option for income-focused investors as MLPs pay out substantially all their income to investors on a regular basis.
Credit Suisse S&P MLP ETN is linked to the S&P MLP Index, which includes both master limited partnerships and publicly traded limited liability companies having a similar legal structure to MLPs and sharing the same tax benefits.
Global X MSCI China Real Estate ETF (
CHIR Quick Quote CHIR - Free Report) – Up 53.9%
KraneShares Trust CSI China Internet ETF (
KWEB Quick Quote KWEB - Free Report) – Up 48.9%
The dual tailwind of easing tensions between the United States and China as well as the easing of zero-COVID restrictions triggered a huge rally. Investors now see warmer ties between the world’s two largest economies after the G20 (Group of Twenty) summit, reducing delisting risks for hundreds of New York-listed Chinese firms and boosting the outlook for trade. Additionally, China’s supportive measures to its struggling housing market added to the strength.
First Trust Dow Jones International Internet ETF (
FDNI Quick Quote FDNI - Free Report) – Up 31.6%
November was all about global shopping online events like Black Friday. This has benefited the online and internet ETF. Plus, the fund has decent weight in China. Policy easing in China has also boosted the space.
Turkey iShares MSCI ETF (
TUR Quick Quote TUR - Free Report) – Up 28.3%
The Borsa Istanbul 100 Index has been hovering around a record high as investors continue to use equities as a hedge for surging prices and a falling lira. The central bank has been slashing rates massively, adding to the 850 bps reduction of the key rate since September 2021, per tradingeconomics. This has bolstered the equity market.
Tin iPatha.B Tin Subindex TR ETN ( JJT Quick Quote JJT - Free Report) – Up 27.4%
Chinese authorities announced further support to the country’s giant but debt-ridden property sector. This raised expectations of stronger demand for construction inputs.