Nasdaq Index Fund Performance: September 2022
With just three months left in the calendar year, the Nasdaq-100 is on track for its worst year since 2008, the last time the tech-heavy index posted a negative annual return. But it hasn’t all been bad news – the Nasdaq 100 Index fell just -4.32% over Q3 2022 after a strong start to the quarter, outperforming other major market benchmarks such as the S&P 500 Index and Dow Jones Industrial Average which fell 5.28% and 6.66%, respectively. Historically speaking, September has been a tough month for the market and this year proved to be no exception. The Nasdaq-100 Index fell over 10.5%, bringing its year-to-date return to -32.8%. Out of the 100 indexes tracked in this report, 97 finished in the red with an average loss of 9.2%. The worst-performing index was the Nasdaq OMX Wind Index, down 20.5%. On the other hand, there were three indexes that managed to finish the month of September in the black: the PHLX Gold/Silver Sector Index, the BS Emerging Markets 2022 TR Index, and the BS Corporate Bond 2022 TR Index. The PHLX Gold/Silver Sector Index was the top-performer overall with a gain of 2.9%.
As mentioned above, the PHLX Gold/Silver Sector Index was the best performing for the month of September with a gain of 2.9%. Outside of the PHLX Gold/Silver Sector Index, we saw widespread weakness across the lineup of Nasdaq Featured Indexes. While the cap-weighted Nasdaq-100 fell -10.6%, the Nasdaq-100 Equal Weighted Index fell -9.2%, signaling that price pressure was felt across the broader US large cap universe and wasn’t just isolated to those mega-cap tech-related names like Apple and Microsoft that drive a large portion of the cap-weighted index. The Nasdaq-100 Ex-Tech Sector Index fell 7% in September, while the Nasdaq Q-50 fell 10.5%.
Global Indexes Performance
Performance across the suite of Nasdaq Global Indexes was broadly negative with all nine indexes falling over 9% for the month. The Nasdaq ASPA Ex Japan Index was hit the hardest in September, losing 12.8%. Emerging markets fell by 10.9% while the Nasdaq Developed Markets Index was not too far behind with a loss of 9.7%. Overall, we saw widespread weakness with no real pockets of relative strength.
The Nasdaq OMX Nordic lineup of indexes also struggled in September. The worst-performing in the group was the OMX Copenhagen 25 with a loss of 12.9% while the OMX Stockholm 30 proved to be the most resilient despite a loss of 4.8%.
Tech Suite Indexes Performance
All indexes in the Nasdaq Thematic/Tech suite finished September in the red. Technology-related areas particularly struggled such as PHLX Semiconductor (-13.8%), Nasdaq CTA Artificial Intelligence (-13.8%), and Nasdaq Yewno Global Future Mobility (-14.5%). Cybersecurity and cloud computing indexes also took a hit, falling 10.6% on average. While healthcare-related indexes moved lower in September, they were not hit as hard when compared to technology and clean energy indexes with the Nasdaq Biotechnology Index falling just 2.4%. The Nasdaq Lux Health Tech index fell over 8%.
Dorsey Wright Indexes Performance
With no defined leadership across most asset classes, markets, and sectors, the momentum factor struggled in September. The worst performing in the Nasdaq Dorsey Wright lineup in September was the Dorsey Wright Energy Tech Leaders which fell over 13%, followed by the Dorsey Wright Basic Materials Tech Leaders Index (-12.9%). As we saw within the Thematic/Tech lineup, the Dorsey Wright Healthcare Tech Leaders was the most resilient within the Dorsey Wright sector lineup despite losing 6%.
Dividend & Income Indexes Performance
All areas, including US and international, within the Nasdaq Dividend and Income Index lineup, fell in September. The Nasdaq Technology Dividend Index was the worst-performing, down 12%, followed by the Nasdaq International Dividend Achievers Index which fell over 10%. The Nasdaq Select Canadian Dividend Index held up the best within the Dividend/Income Suite, despite a loss of 5.8%.
All indexes in the Nasdaq Options lineup fell in September with an average loss of 5.9%. The gold-related Credit Suisse Nasdaq Gold FLOWS103 was the most resilient despite losing 2.2%, which is in line with what we saw from the PHLX Gold/Silver Sector Index.
Green Economy Indexes Performance
The Nasdaq Green Economy suite had a particularly hard month with an average loss of 11.4% across the five indexes that comprise it. The Nasdaq OMX Wind Index fell over 20%, the worst-performing of all 100 indexes tracked in this report.
Other Assets Indexes Performance
The Nasdaq BulletShares Indexes were mostly negative however were not hit as hard as other areas we’ve already reviewed. The BS Corporate Bond 2022 TR and the BS Emerging Markets 2022 TR indexes were the only other two indexes to finish in the black outside of the PHLX Gold/Silver Sector Index in September. The worst-performing in the BulletShares lineup was the BS High Yield Corporate Bond 2026 TR Index with a loss of 2.8%.
Each of the three Nasdaq Crypto indexes tracked in this report fell in September, however, they were not hit as hard as we’ve seen in recent months prior. The Nasdaq Bitcoin Index fell just 1.6%. On the other hand, the Nasdaq Ethereum Index was the worst-performing of the group with a loss of 12.8%.
September Index Funds Performance Summary
As we head into the final quarter of the year, we do so in a particularly challenging market environment. Rising rates, record-setting inflation, and ever-changing geopolitical tensions have rocked the global markets this year. Although the Nasdaq 100 is on track to post its first negative annual return since 2008, we must recognize that we’re in a very different market environment when compared to that of the Great Financial Crisis 14 years ago. Overall, the fundamental backbone of the Nasdaq 100 remains strong, and innovation continues to drive forward despite a slowing global economy as we head into the final quarter of 2022.
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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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