Last Friday was the half way point of the year so we’re looking at local ETF returns for the year-to-date (YTD).
Tech dominates the green list as the Nasdaq added almost 40% for the best start to the year since the early 1980’s and a 10% weakening in the Rand added even more.
What surprised (aside form an epic Nasdaq) was that even the European region and Japan did well. No Top40 as it added a more modest 5% over the period (before dividends).
Also no bond ETFs is the top movers, but that’s because bonds are never going to do the sort of returns we saw in the first half. They’re currently offering ±12% which is great – but not a touch on +50% in six months.
The losers list is all about resources and resource stocks but some surprises as the Satrix Divi and CoreShares local dividend aristocrats both struggled. But aside from those nasty resource ETFs the list f losers is actually fairly short and loses not that bad,
A last and important point. Don’t now change everything in your ETF portfolio n order to chase returns. Sure maybe some tweaks are in order, but whole sale changes based on just six months is never going to be a good idea.
At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.