ETF Performance Report: April
Despite the sell-off in momentum stocks and exchange traded funds in mid-April, the markets recovered from the decline as earnings and improved economic data helped support further equity gains.
The top performing non-leveraged exchange traded products over the past month include the iPath Global Carbon ETN (GRN) up 17.9%, iPath Dow Jones-UBS Nickel Total Return Sub-Index ETN (JJN) up 17.0% and iPath Dow Jones-UBS Coffee Total Return Sub-Index ETN (JO) up 16%.
Carbon trading is finally gaining attention, with Thomson Reuters Point Carbon calculating that overall transaction value in global carbon market could expand to $89 billion, in 2014, up by two thirds, reports Gillian Carr for Risk.net. Looking around the world, there are a number of significant developments in the EU ETS, California, the Regional Greenhouse Gas Initiative (RGGI), China and the global market in UN-backed offsets.
Due to the Indonesian export ban and Russia’s invasion of Ukraine, nickel has been one of this year’s top-performing metals. Potential sanctions against Russia could halt exports from Norilsk Nickel, Russia’s largest mining company, which accounts for 17% of world output. [Industrial Metals ETFs Capture Investor Interest]
After a pullback in March, coffee prices surged again in April. Weather observers are predicting that an El Nino weather pattern will cause further damage to crops in Brazil, the world’s largest grower of coffee beans, during the peak of the harvesting season. [Coffee ETNs Percolate as Storms Threaten Brazil Crops]
The worst performing non-leveraged ETPs over the past month include the C-Tracks on Citit Volatility Index ETN (CVOL) down 15.7%, Global X Social Media Index ETF (SOCL) down 10.6% and Global X Uranium ETF (URA) down 10.3%.
Stocks strengthened at the beginning of April after Fed chair Janet Yellen stressed the need for further economic support for some time. However, equities began to sell-off once the non-farm payroll numbers showed an increase, fueling speculation that the Fed could hike rates.
The stock market continued its decline as investors shifted their focus away from the previously high-flying momentum stocks and into defensive plays, despite mostly positive economic data.
Equities began to edge higher mid-April through the end of the month, following strong earnings and government reports.
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