The chart and table above provide return data for the major income-oriented asset classes for the month of September 2022, Q32022 and YTD 2022. The returns for each asset class are based on the returns of the constituents in the Nasdaq HANDLSTM Base index representing this category. Also included are returns for the Nasdaq 5HANDLTM Index, the Nasdaq 7HANDLTM Index and the Nasdaq 10HANDLTM Index.
Markets rallied in September, where they collapsed in August as rising interest rates devastated stocks and bonds alike. For the month, the Core Large Cap Equity category returned -10.1%, while the Core Fixed Income category lost 4.2%.
Every income category tracked by HANDLS indices lost ground in September. Rising rates hit rate-sensitive REITs hardest, resulting in a monthly loss of 12.6%. The Utilities and Growth & Income categories also underperformed the broader equity market. Preferred Securities led the field in September but still lost 3.5% for the month.
In a challenging market environment, the Nasdaq 5HANDL Index returned -7.0% for the month. The Nasdaq 7 HANDL Index, the 1.3x leveraged version of the index, returned -9.1% in August, while the Nasdaq 10 HANDL Index, the 2.0x leveraged version of the index returned 13.9 % lost.
For the quarter ended September 30, 2022, MLPs were the only category up, riding a wave of strong energy prices and returning 8.2%. The large cap core equity and core fixed income categories returned -4.6% and -4.7%, respectively, for the quarter. As interest rates rose steadily throughout the quarter, Active Fixed Income was the worst performer, falling 10.7%. Other fixed income categories also struggled.
The Nasdaq 5HANDL Index returned -4.1% for the quarter. The Nasdaq 7 HANDL Index returned -5.6% for the quarter, while the Nasdaq 10 HANDL Index returned -9.0%.
*The chart and table above provide return data for major income asset classes since the inception of the HANDLS indices (3/12/2009). The returns for each asset class are based on the returns of the constituents in the Nasdaq HANDLSTM Base index representing this category. Also included are returns for the Nasdaq 5HANDLTM Index, the Nasdaq 7HANDLTM Index and the Nasdaq 10HANDLTM Index. Launch dates for MLPs (01/02/2013), Build America Bonds (01/02/2010) and Active Fixed Income (01/02/2014)
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