U.S. equities and stock exchange traded funds regained their footing Wednesday, ending a tumultuous month on a positive note.
Over September, the Dow Jones Industrial Average fell 1.5%, the Nasdaq Composite dropped 1.1% and the S&P 500 retreated 2.5%.
The best performing non-leveraged exchange traded products over the past month include the ETFS Physical Palladium Shares (NYSEArca: PALL) up 11.8%, Global X Nigeria Index ETF (NYSArca: NGE) up 10.1% and C-Tracks on Citi Volatility Index ETN (NYSEArca: CVOL) up 8.9%.
Palladium, which is used in gasoline engine catalytic converters, has been strengthening after China pledged drastic measures to cut emissions and confidence in diesel engine vehicles was tainted in the wake of the Volkswagen fallout. [Palladium ETF Surges to Two-Month High]
After the plunge in Nigerian equities this year, local investors may have been edging back into the market at the end of August, supporting the recent rally in Nigeria’s stock market, Business Recorder reported.
With lingering uncertainty, the CBOE Volatility Index spiked during the second half of September. The VIX ended September at around 24.4, or still higher than its long-term average and well above levels of around 12 and 13 experienced earlier this year.
The worst performing non-leveraged ETPs over the past month include the InfraCap MLP ETF (NYSEArca: AMZA) down 30.2%, C-Tracks ETNs linked to the Miller/Howard MLP Fundamental Index (NYSEArca: MLPC) down 24.2% and SPDR Pharmaceuticals ETF (NYSEArca: XPH) down 23.4%.
While we experienced some wild swings, the equities market remained relatively range bound through September.
The stock market slipped at the start of the month as traders pared down bets in light of a weaker global outlook, notably on reports of weakness coming out of China, the world’s second largest economy.
Mixed economic news, with some areas of strength in the U.S., helped lessen market losses. Additionally, bargain hunters stepped in to bolster less volatile names.
In mid-September, the FOMC held off on an interest rate hike. While market’s reaction was initially positive, stocks quickly soured, reflecting investors’ unease without a definitive monetary policy change in light of potential economic weakness.
A spike in volatility triggered another major sell off in the final week of September. On the flip side, the heightened volatility fueled strong gains on the last trading session of the month.
Top performing non-leveraged ETF performers over the third quarter include CVOL up 44.3%, iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) up 33.8% and VelocityShares Daily Long VIX Short-Term ETN (NYSEArca: VIIX) up 33.5%.
At the bottom end, the worst performing non-leveraged funds this quarter include the First Trust ISE-Revere Natural Gas Index Fund (NYSEArca: FCG) down 41.2%, PowerShares S&P SmallCap Energy Portfolio (NasdaqGM: PSCE) down 40.0% and Global X Copper Miners ETF (NYSEArca: COPX) down 39.8%.
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Max Chen contributed to this article.