ETF Performance Report: October

ETF Trends

The equities market and stock exchange traded funds began October on a strong note as improving economic data helped bolster sentiment. However, the weaker earnings season weighed on the markets at the end of the month.

The top performing ETFs over October include Global X FTSE Greece 20 ETF (GREK) up 23.6%, Global X China Industrials ETF (CHII) up 13.0% and EGShares China Infrastructure ETF (CHXX) up 10.6%. However, the Greek ETF tumbled Wednesday on renewed fears over the European debt crisis and the country’s precarious financial situation. [Greek ETF Sells Off on Budget Worries]

After getting pummeled over the past year, the Greece ETF had been making a nice recovery as the country agrees to the new terms for its next bailout installment. Looking at 2013 earnings estimates, Greek stocks are “insanely cheap,” Michael Krause, president of AltaVista Research, said in a Investor’s Business Daily article.

Chinese stocks have also been among the top performers for the month. China’s proposed infrastructure stimulus plan helped boost industrials and infrastructure sectors.

Other performing ETFs include those that track coal, Chinese small-caps and broad Chinese stocks.

The Dow Jones Industrial Average remained dropped 2.1% over October. Meanwhile, the Nasdaq Composite lost 3.4% and the S&P 500 dipped 1.4%.

At the start of October, stronger employment and industrial numbers helped maintain the momentum in the equities market.

However, in mid-month, the markets started oscillating in sideways trades as the World Bank and International Monetary Fund warned of slowing global growth. But the pressure was slightly offset by rising consumer sentiment, higher retail sales and improving housing market.

During the last weeks of the month, a series of earnings misses and more pessimistic company outlooks dragged on the U.S. markets.

The end of the month closed on a dour note after Hurricane Sandy kept U.S. markets silent for two days, but the New York Stock Exchange resumed trading on the last day.

For more information on ETF performances, visit our ETF performance reports category.

Visit our ETF Analyzer for the most up-to-date ETF performance numbers.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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