October was kind to the bulls. During the last month of the worst six-month period in which to own stocks, the S&P 500 rose 3.6% while the Nasdaq Composite climbed 2.66%. All that despite the first U.S. government shutdown since the 1990s and a near debt ceiling debacle.
Amid slack economic data and anticipation of ongoing easing from the Federal Reserve, investors pushed into stocks last month, believing that tapering is still months away and that riskier assets can rally into year-end. [October ETF Performance Report]
TrimTabs points out that combined equity fund inflows last month of $49.1 billion represent the fourth-best month on record and two of the three best inflows months have taken place this year: January and July. Industrials and technology led the way in terms of inflows at the sector level. [Industrial, Tech ETFs See Strong October Inflows]
However, October was not kind to every exchange traded fund. Volatility ETFs were punished despite the government shutdown. Select equity-based commodities funds fell out of favor and a once hot corner of the health care sector experienced its worst month in what feels like an eternity.
Here is the recap, in pictures, of Octobers 10 worst-performing non-leveraged ETFs.