U.S. equities and stock ETFs enjoyed a strong September month as they close out a tumultuous third quarter near record highs.
The Dow Jones Industrial Average gained 5.1% over the third quarter of 2017. Meanwhile, the Nasdaq Composite added 5.0% and the S&P 500 was 3.7% higher.
The top performing non-leveraged exchange traded products of the third quarter included the VanEck Vectors Rare Earth/Strategic Metals ETF (NYSEArca: REMX) up 43.4%, iPath Global Carbon ETN (NYSEArca: GRN) up 38.4% and Global X Brazil Consumer ETF (NYSEARCA: BRAQ) up 33.8%.
The worst performing non-leveraged ETPs of the third quarter include the REX VolMAXX Long VIX Weekly Futures Strategy ETF (BATS: VMAX) down 32.6%, VellocityShares 1x Long VSTOXX Futures ETN (NYSEArca: EVIX) down 28.8% and ProShares VIX Short-Term Futures ETF (NYSEArca: VIXY) down 22.0%.
July was a record-making month for U.S. equities and stock ETFs. As the Brexit shock faded and improved economic data helped fuel sentiment, investors turned risk-on, fueling the push in U.S. equities through the rest of the month. Additionally, a string of better-than-expected second earnings results helped keep the momentum going.
However, the equities market were jolted as traders turned risk-off in response to the U.S. and North Korea saber rattling, with President Donald Trump threatening Pyongyang with “fire and fury” if the recluse state takes action. The sudden bout of geopolitical risk was seen as a necessary trigger to lock in the recent gains after markets hit record highs.
Political risks kept gains at bay. Talks of a change up among President Donald Trump’s advisors kept markets on edge amid questions in how the president handled the violence in a Virginia demonstration. Nevertheless, toward the end of the month, investors jumped on the strengthening U.S. economic data. Many were also betting on Trump to clarify his plans to improve the tax code.
Over the past month, the Dow Jones Industrial Average rose 2.2%. Meanwhile, the Nasdaq Composite gained 1.3% and the S&P 500 increased 2.1%.
The best performing non-leveraged ETPs of September include the PowerShares S&P SmallCap Energy Portfolio (NasdaqGM: PSCE) up 26.3%, SPDR Oil & Gas Equipment & Services ETF (NYSEArca: XES) up 25.9% and iShares U.S. Oil Equipment & Services ETF (NYSEArca: IEZ) up 19.9%.
The worst performing non-leveraged ETPs of the month include VMAX down 21.9%, EVIX down 19.6% and iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX)down 15.6%.
For more information on the ETF market, visit our ETF performance reports category.