It’s been a tough year for investors for both local and offshore portfolios. The Top40 is -13.7%, S&P500 -23.3% and Nasdaq -32.7%.
Index moves YTD for close 10 Oct 22
Really nowhere to hide.
With markets under pressure, it comes as no surmise that JSE listed ETFs have mostly had a hard year as well and even locally listed offshore ETFs are mostly in the red even as the Rand has weakened by over 10% so far in 2022.
The one area that has done well is commodity ETFs as the underlying commodity has benefited from the Rand weakness and the top gainers in 2022 are mostly commodity ETFs.
JSE listed ETF returns YTD for close 10 Oct 22
Seeing the CoreShares Preference Share ETF (JSE code: PREFTX) is not a surprise as rising rates mean a higher dividend payout while the S&P Namibia Sovereign Bond 1+ year Top 10 Index (JSE code: NFHAMB) is doing great.
The Absa Wits Risk-Controlled SA Value Index (JSE code: NFEVAL) shows just how value has outperformed growth so far in 2022.
On the red side, it’s tech, emerging markets and property.
JSE listed ETF returns YTD for close 10 Oct 22
S&P500 ETFs are off around 13%, my preferred GLOBAL ETF from CoreShares has lost 14.8%, and the MSCI global (JSE code: SYGWD) is down 14.5%.
Looking at these numbers likely your ETF portfolio has had a horrid 2022, but years like these happen and our best response is to carry on carrying on.
The only consideration to making changes is if you were trying your hand at niche Tis and have discovered that kicking a sector or market that will outperform is almost as hard as picking stocks that will outperform.
ETF blog
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.