After a stellar October, the equities market and stock exchange traded funds had a more tepid November, with traders waiting for a potential rate hike in December.
Over November, the Dow Jones Industrial Average was down 0.6%, the Nasdaq Composite was 0.4% lower and the S&P 500 dipped 1.1%.
The best performing non-leveraged ETFs over the past month include KraneShares CSI New China ETF (KFYP) up 14.7%, BioShares Biotechnology Clinical Trials Fund (BBC) up 13.0% and Deutsche X-trackers Japan JPX-Nikkei 400 Hedged Equity ETF (JPNH) up 12.0%.
Despite a brief stumble toward the end of the month, China’s market have been in full bull-market-rally mode, with the Shanghai Composite Index rallying over 20% since its August lows. [China ETFs’ Worst Stumble Since August]
The continued merger and acquisition activity helped support the healthcare and biotech industries. Biotechnology sector-specific ETFs that track smaller companies were outperforming as these funds track small, specialized drug makers that could potentially be acquisition targets down the line. [Biotech ETFs Start Week With A Surge]
Currency-hedged Japan ETFs have been a popular way to capture favorable growth opportunities in the developed Asia Pacific economy as monetary and fiscal policies help support the country’s outlook. [Central Banks Complicate Capturing Japan ETF Returns]
The worst performing non-leveraged exchange traded products over the past month include the ETFS Physical Palladium Shares (PALL) down 19.1%, Global X Copper Miners ETF (COPX) down 18.9% and E-TRACS UBS Long Platinum ETN (PTM) down 18.4.
The U.S. equities market started off November in sideways trading on mixed economic news. While the housing sector was strengthening, the factor sector has been struggling on weak exports and the stronger U.S. dollar.
New reports of slowing growth out of the consumer sector also dragged on the broader market as brick-and-mortar stores blamed weaker winter sales on the unseasonably warm weather.
The equities market began to trend lower after the unexpectedly strong October non-farm payroll employment report fanned speculation that the Federal Reserve would have more reason to hike interest rates in its December meeting.
Nevertheless, improving economic data, notably in the housing market and labor market, helped support further gains in the equities market and pare the mid-November pullback.
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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.