Nasdaq Index Fund Performance: July 2022
Performance in July across Nasdaq’s suite of indexes was overwhelmingly positive with an average gain of 8.6% across the 99 indexes we track. July’s performance was a strong reversal from June’s average loss of 8.7% and May’s average loss of 1.0%. Overall, 94 indexes generated positive price performance, while only 5 indexes posted declines. In the attached report, all but one of the major Nasdaq Featured Indexes was in the green. The Nasdaq-100 gained 12.6% in July, a strong reversal from its loss of 9.0% in June. The Nasdaq-100 Technology Sector and Nasdaq Composite were up 12.6% and 12.3%, respectively, and were the relative outperformers in the suite of Nasdaq Featured Indexes. The PHLX Gold/Silver Sector Index was the underperformer of the suite, down 2.2%.
Global Indexes Performance
All but one index in the suite of Nasdaq Global Indexes posted positive returns in July, with Nasdaq US Small Cap and Nasdaq US Mid Cap the top performers, posting returns of 10.1% and 10.0%, respectively. Developed Markets outperformed Emerging Markets, with DM up 7.9% versus EM down 1.0%. Within Europe, Nasdaq’s Nordic Indexes all posted gains in July, with OMX Copenhagen 25 and Nasdaq OMX Nordic 120 registering the highest gains of 12.4% and 11.7%, respectively. Within EM, Asia-Pacific ex-Japan posted modest gains of 0.7%.
Dividend & Income Indexes Performance
Nasdaq’s Dividend & Income Suite registered gains in July with all but one index generating positive returns, a strong reversal from its performance in June when all indexes finished in negative territory. The Nasdaq Victory Dividend Accelerator and Nasdaq 7HANDL were the relative outperformers, posting gains of 8.1% and 7.7%, respectively. The laggards of the month were Nasdaq Select Canadian Dividend and Nasdaq Select Canadian Preferred Share, up 2.9% and down 0.7% respectively.
Dorsey Wright Indexes Performance
Nasdaq’s Dorsey Wright Indexes, driven by exposure to the momentum factor, registered positive returns across all sectors and all market segments except emerging markets. Dorsey Wright Emerging Markets Tech Leaders Index, the sole underperformer, registered a loss of 0.9%. The Dorsey Wright Technology Tech Leaders Index and Dorsey Wright Industrial Tech Leaders Index were the top outperformers, up 18.8% and 12.7%, respectively. Other indexes including Dorsey Wright Energy Tech Leaders, Dorsey Wright SmallCap Tech Leaders, Dorsey Wright Technical Leaders, Dorsey Wright Focus Five and Dorsey Wright Basic Materials Tech Leaders registered strong double digit returns of 12.1%, 11.3%, 10.7%, 10.6%, and 10.4%, respectively.
Green Economy Indexes Performance
Within the lineup of the Nasdaq Green Economy Indexes, the Nasdaq OMX Green Economy registered gains of 14.4% and was the top performer. Nasdaq OMX Wind and Nasdaq OMX US Water registered strong gains of 13.7% and 12.9%, respectively, a sharp reversal from performance in June when the indexes registered losses of 9.8% and 5.7%, respectively. Nasdaq OMX Solar continued its strong performance for the month of July, registering gains of 12.1%.
Tech Suite Indexes Performance
Within Nasdaq’s Thematic Tech suite of indexes, all twenty-six indexes finished the month in the green, which was quite in contrast with the previous month when only four indexes recorded gains. The Nasdaq Clean Edge Green Energy Index was the top performer, posting positive returns of 19.2%, a strong reversal from its underperformance last month when it was down 6.4%. Other indexes that registered strong double-digit returns include PHLX Semiconductor, Nasdaq US Smart Semiconductor.
Other Assets Indexes Performance
Finally, we round things out by highlighting how the performance reversal extended to other asset classes, including Options, Fixed Income, and Cryptocurrencies. All three asset classes showed a strong turnaround this month from their performance in June. Within Nasdaq’s Options suite, all but one index posted positive returns. This was quite in contrast with the previous month when all but one index posted declines. The Nasdaq-100 Quarterly Protective Put 90 was the top outperformer, posting positive returns of 10.5%, a strong reversal from its loss of -0.1% last month. Credit Suisse Nasdaq Gold FLOWS103 underperformed the rest of the suite, posting a loss of -2.1%. Within the Bullet Shares Fixed Income suite, all indexes were up, a strong reversal from the month of June when all indexes were down. The BS High Yield Corporate Bond 2026 TR Index was the top outperformer, posting returns of 5.2%, followed by the BS High Yield Corporate Bond 2024 TR Index, posting returns of 4.7%. These indexes reversed their declines from the previous month. Other indexes within the Fixed Income suite posted low single-digit returns. Finally, the Nasdaq Crypto Indexes posted significant double-digit returns, a dramatic turnaround from the previous month which saw severe declines. The Nasdaq Ethereum Index was up 69.2% and was the top performing index for the month across the 99 indexes we track. The Nasdaq Crypto Index and Nasdaq Bitcoin Index also registered strong gains of 37% and 26.2%, respectively.
July Index Funds Performance Summary
While market participants and consumers in the broader economy debate whether the U.S economy is technically in a recession, there appears to be some renewed confidence in the stock market as seen in the returns in the month of July across the suite of Nasdaq indexes. The average return of 8.6% across Nasdaq’s suite of indexes was the best on record for the year. It is worth recalling that multiple headwinds including high inflation, the war in Ukraine, and China’s zero-COVID 19 policy weighed on markets throughout the first half of the year. While these concerns continue to weigh on the minds of investors, a better-than-expected start to the 2Q earnings season and another 75 basis point hike in interest rates by the Fed have recently helped improve investor sentiment. Stronger than expected earnings by Google’s parent Alphabet, Amazon, and Microsoft acted as a catalyst for the performance recovery of the tech-heavy Nasdaq-100 Index, among others. Additionally, the 75 basis point hike by the Fed provided reassurance to market participants that the Fed is zeroing in on taming inflation. The outlook for the rest of the year will continue to depend upon the actions of the Fed and corporate profits. Our hope remains that the second half of the year will present strong buying opportunities for investors with a long-term time horizon. We also remain hopeful that market participants will recover some of the ground they lost during the first half of the year.
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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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