Nasdaq Index Fund Performance: June 2022
Performance in June across Nasdaq’s suite of indexes was generally negative with an average loss of 8.7% across the 99 indexes we track. June’s performance was more extreme when compared to May’s average loss of 1.0% and slightly more than April’s average loss of 8.5%. Overall, six indexes generated positive price performance, while 93 indexes posted declines. In the attached report, all major Nasdaq Featured Indexes were in the red. The Nasdaq-100 lost 9.0% versus 1.7% in May. The Nasdaq-100 Ex-Tech Sector and Nasdaq-100 Dorsey Wright Momentum indexes were down 5.7% and 7.5% respectively and were the relative outperformers in the suite of Nasdaq Featured Indexes. The PHLX Gold/Silver Sector Index and KBW Bank Index were the worst-performing of the Nasdaq Featured Indexes, losing 13.7% and 13.3% respectively.
Global Indexes Performance
Nasdaq Global Indexes posted declines across the board in June, with Nasdaq Europe and Nasdaq US Mid Cap hit the hardest, posting losses of 10.6% and 10.2% respectively. Developed Markets continued to underperform Emerging Markets, declining 9.0% versus 7.3%. Losses across large-cap and small-cap were uniform, down 8.3% and 8.9% respectively. Within Europe, Nasdaq’s Nordic Indexes all posted losses in June, with Nasdaq OMX Nordic 120 and OMX Stockholm 30 registering the highest losses, down 8.7% and 8.3% respectively. Within EM, Asia-Pacific ex-Japan fell by 8.0%.
Dividend & Income Indexes Performance
Nasdaq’s Dividend & Income Suite registered declines in June, a sharp reversal from its strong performance in May where all but one of the 10 indexes finished in positive territory. The Nasdaq Select Canadian Preferred Share Index was the relative outperformer, posting a loss of 5.1%. The laggards of the month were the Nasdaq US Buyback Achievers Index and Nasdaq Technology Dividend Index down 10.2% each.
Dorsey Wright Indexes Performance
Nasdaq’s Dorsey Wright Indexes, driven by exposure to the momentum factor, demonstrated broad-based weakness across Energy, Utilities, Technology, and large/mid-caps. The Dorsey Wright Energy Tech Leaders Index was the worst performing of the Dorsey Wright Suite, losing 20.8% in June, a strong reversal from its previous month performance where it was the top performer, posting a gain of 15.2%. Dorsey Wright Basic Materials Tech Leaders was down 20.1% and was the second-worst performer. Dorsey Wright Emerging Markets Tech Leaders and Dorsey Wright SmallCap Tech Leaders were also down significantly, with losses of 15.7% and 15.3% respectively. Dorsey Wright Healthcare Tech Leaders and Dorsey Wright Consumer Staples Tech Leaders were the relative outperformers, down 3.5% and 4.9% respectively.
Green Economy Indexes Performance
Within the lineup of the Nasdaq Green Economy Indexes, the Nasdaq OMX Solar Index led the way in June with a gain of 11.9%, continuing its strong performance from the previous month. As with the previous month, the Nasdaq OMX Solar Index was the top-performing index of all the 99 indexes tracked in our report. Nasdaq OMX Wind Index was the laggard of the group, posting a decline of 9.8%. Nasdaq OMX US Water showed modest resilience, down 5.7% the month of June.
Tech Suite Indexes Performance
Within Nasdaq’s Thematic Tech suite of indexes, four out of twenty-six indexes finished the month with gains. Nasdaq’s Junior Biotechnology Index emerged as the strongest performer, posting gains of 9.4% for the month of June, followed by Nasdaq US Healthcare Innovators and Nasdaq Biotechnology Index posting gains of 2.9% and 1.0% respectively. Nasdaq Clean Edge Green Energy registered a loss of 6.4% for the month of June, a strong reversal from its outperformance of 6.8% in May. The laggards for the month were PHLX Semiconductor, Nasdaq US Smart Semiconductor, and the Nasdaq CTA Artificial Intelligence Index posting losses of 17.5%, 16.6% and 14.1% respectively.
Other Assets Indexes Performance
Finally, we round things out by looking at other asset classes, including Options, Fixed Income, and Cryptocurrencies. Within Nasdaq’s Options suite, Nasdaq-100 Quarterly Collar 95-110 was the sole outperformer, posting a gain of 1.2%. Other indexes posted declines, with the CBOE Nasdaq-100 Half BuyWrite Index and Nasdaq-100 Monthly Net Credit Collar 95-100 Index underperforming, down 5.6% and 2.7% respectively. Within the Bullet Shares (Fixed Income) suite, all indexes were down, a reversal from the month of May when all but two indexes posted positive returns. The BS High Yield Corporate Bond 2026 TR Index and BS High Yield Corporate Bond 2024 TR Index were the laggards, down 5.7% and 5.5% respectively. Finally, the losses across the suite of Nasdaq Crypto Indexes were dramatic, with the Nasdaq Crypto Index, Nasdaq Bitcoin Index and Nasdaq Ethereum Index down 41.7%, 40.2% and 47.3% respectively.
June Index Funds Performance Summary
The economy may be on the cusp of a recession, with significant headwinds continuing to weigh on markets. The Nasdaq Composite registered the worst first half of performance since the inception of the index in 1971; for the S&P 500, it was the worst first half since 1970. Inflation has been running at its fastest pace in more than 40 years, driven by rising food and energy prices. With the Fed raising interest rates, investors have been rotating out of growth names, which has hit sectors such as Technology particularly hard. If history is any indicator, the broader equity market has a decent chance of staging a healthy recovery in the second half after a turbulent first half of the year. As for when the market might hit its bottom, much would depend upon the timing of a potential recession, further actions by the Fed, and corporate profits for the rest of the year. We remain hopeful that markets will recover in the near term, especially in light of the widespread, compelling buying opportunities that now exist for investors operating on a long-term horizon.
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Nasdaq Index Research Team
Nasdaq
Nasdaq calculates more than 40,000 diverse indexes, providing coverage across asset classes, countries and sectors.
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