ETF Performance Report: March & Q1 Rally

India’s market suffered a blow at the end of 2016 after Prime Minister Narendra Modi yanked about 86% of all cash from the economy to fight so-called black money to fight back against the huge shadow economy. While the economy may experience a short-term setback from the move, the results of demonetization could usher in long-term benefits to the economy.

Moreover, the Indian economy is set to implement other structural reforms, including a Goods and Service Tax that could bolster growth by another 10%. Prime Minister Modi has also hinted at encouraging SMEs, or small and medium enterprises, with tax relaxation and new incentives offered toward small business owners. The government has brought a renewed focus on SMEs to capture a larger market space.

The economy as a whole is also on a more stable ground and is stronger than most of its developing market peers. India is enjoying one of the world’s fastest growth rates, improved fiscal discipline, a stable rupee currency, moderate current account deficit and slowing inflationary pressures.

The worst performing non-leveraged exchange traded products so far this year include iPath Bloomberg Natural Gas Subindex Total Return ETN (NYSEArca: GAZ) down 33.7%, e iPath Global Carbon ETN (NYSEArca: GRN) down 25.5% and Elkhorn S&P MidCap Energy Portfolio (BATS: XE) down 19.0%.

The Dow Jones Industrial Average was down 0.30% over the past month. Meanwhile, the Nasdaq Composite gained 1.6% and the S&P 500 added 0.3%.

The best performing non-leveraged ETPs of the past month include the United States Natural Gas Fund (NYSEArca: UNG) up 13.2%, ELEMENTS Linked to the MLCX Biofuels Index ETN (NYSEArca: FUE) up 12.2% and iShares MSCI Mexico Capped ETF (NYSEArca: EWW) up 12.0%.

Meanwhile, the worst performing non-leveraged ETPs of March include ELEMENTS Dogs of the Dow Linked to the Dow Jones High Yield Select 10 Total Return Index ETN (NYSEArca: DOD) down 10.4%, e iPath Bloomberg Sugar Subindex Total Return ETN (NYSEArca: SGG) down 13.8% and UBS ETRACS S&P GSCI Crude Oil Total Return Index ETN (NYSEArca: OILX) down 10.6%.

For more information on the ETF market, visit our ETF performance reports category.