January HANDLS Market Recap: Blast Off

The graph and table above provide return data for major income-oriented asset categories for the month of January 2023 and YTD 2023. Returns 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.

BLAST OFF 🚀🚀🚀

In the wake of a challenging year, markets provided a respite for income investors in January. The Core Large Cap Equity category delivered a 9.2% rally, powered by a rebound in beaten-down technology stocks. On the fixed income side, signs of moderating inflation pushed down interest rates, driving the Core Fixed Income category to a 3.3% return.

Every equity category except Utilities (-2.0%) delivered positive returns in January, with Preferreds leading the way with an 11.6% return. REITs rebounded from a disastrous 2022 as lower interest rates drove a 9.9% rally. The Dividend Equity category lagged the broader stock market but still delivered a 2.9% return.

Fixed-income categories delivered strong performances across the board, with tightening credit spreads driving gains in excess of the aggregate bond market for Build America Bonds (5.1%), Investment Grade Corporates (4.2%), Active Fixed Income (4.0%), High Yield Bonds (3.7%) and Mortgage-Backed Securities (3.5%).

The Nasdaq 5HANDL Index returned 4.6% for the month. The Nasdaq 7 HANDL Index, the 1.3x leveraged version of the index, gained 5.9% in January while the Nasdaq 10 HANDL Index, the 2.0x leveraged version of the index, delivered a 8.9% return.

HANDLS Indexes and Nasdaq  have pioneered a novel approach to meeting the very real income needs of investors that combines a systematic discipline, a strict adherence to monthly optimality and a foundation built on everything we know about modern portfolio theory:

• Total Return is what matters.
• Diversification is the only free lunch in investing.
• Yield is just a number.

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