The graph and table above provide return data for major income-oriented asset categories for the month of August 2022. Returns for each asset category are based on the returns of the constituent(s) in the Nasdaq HANDLS™ Base Index representing that cate-gory. Also included are returns for the Nasdaq 5HANDL™ Index, the Nasdaq 7HANDL™ Index and the Nasdaq 10HANDL™ Index.
In Like a Bull, Out Like a Bear
Markets enjoyed a strong start to August, continuing a rally that saw rising asset values across the board in July. Alas, the second half of the month proved more challenging for investors, with prices of stocks and bonds suffering steep declines. For the month, the Core Large Cap Equity category returned -4.7% while the Core Fixed Income Category came in at -2.9%.
Following up on a blistering performance in July, MLPs managed to generate a positive return of 3.8% in August, bringing the category’s year-to-date return to 28.1%. The only other income-oriented asset category to generate a positive return in August was Utilities, delivering a monthly gain of 0.5% and bringing its year-to-date return to 5.5%, making it the only category besides MLPs with a positive year-to-date return.
Rising interest rates spelled trouble for REITs, with the category losing -5.8% in August to lag all in-come-oriented asset categories tracked by HANDLS Indexes. The Growth & Income and Preferred Securities categories (-5.3% and -4.2%, respectively) also lagged behind the broader stock and bond markets during the month.
Facing headwinds in nearly every asset category, the Nasdaq 5HANDL Index returned -2.8% for the month. The Nasdaq 7 HANDL Index, the 1.3x leveraged version of the index, returned -3.7%% in August while the Nasdaq 10 HANDL Index, the 2.0x leveraged version of the index, lost -5.9%.
Since Inception Category Performance
*The graph and table above provide return data for major income-oriented asset categories since inception of HANDLS Indexes (3/12/2009). Re-turns for each asset category are based on the returns of the constituent(s) in the Nasdaq HANDLS™ Base Index representing that category. Also included are returns for the Nasdaq 5HANDL™ Index, the Nasdaq 7HANDL™ Index and the Nasdaq 10HANDL™ Index. Inception dates for MLPs (1/2/2013), Build America Bonds (1/2/2010) and Active Fixed Income (1/2/2014)
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