Spread the pain: ETF returns breakdown

As markets continue to tumble in the early New York trading session, MKTSTK wanted to take a high level look at how different assets have performed since the onset of the latest VIX spike.

To do so, we looked at the returns to a selection of 25 ETFs which represent a broad range of asset classes including US equities (SPY, QQQ), FX (FXY, FXE), Asian equities (FXI, EWJ), and commodities (USO, GLD). Each series starts off at 1.0 and tracks the return from July 1st onward:

facet

The biggest losses have occurred in two groups:

  • Emerging markets like FXI and EWZ have seen values tumble with no retracement
  • Volatility based products like SVXY and XIV have gotten crushed by the rise in volatility

Energy and Biotechs have also gotten smoked during the latest crisis. Natural gas is beginning to catch up with the rest of the energy sector. The slide in pharma was accelerated by comments yesterday from Hillary Clinton to “end price gouging” in the drugs business.

On the upside, government bonds have done predictably well given a general rush for quality and the latest decision from the FOMC to leave rates on hold. Interestingly, the utilities sector is actually up over the period; although the ride has resembled a roller-coaster at times.

Given the market action, we are still very much in crisis mode. Living to trade another day is a legit strategy at the moment; survival is never assured.


SliceMatrix Update

We’ve closed the signup for the SliceMatrix Beta period. We’ve been busy taking the suggestions you have communicated and evolving the platform accordingly. Expect exciting updates over the next few weeks!!


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Categories: Markets

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