November HANDLS Market Recap: Return of the Bulls?

The graph and table above provide return data for major income-oriented asset categories for the month of November 2022 and YTD 2022. 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.

Return of the Bulls?

Financial markets rallied across the board in November, with the Core Equity Large Cap Equity category returning 5.5% for the second month in a row. Unlike in October, fixed-income markets joined the rally, with the Core Fixed Income category rebounding 3.7%

Other income-oriented categories generally performed favorably, with MLPs being the only category to lose ground in November (-2.7% for the month). On the equity side, Growth & Income and Covered Calls were the leaders, delivering returns of 7.0% and 6.8%, respectively.

A rally in the bond market saw the yield on the 10-Year U.S. Treasury fall from 4.1% at the beginning of November to 3.5% at the end. All fixed-income categories benefitted from declining interest rates, with Active Fixed Income leading the way with a 5.2% return. After underperforming the Core Fixed Income category throughout the year, Investment Grade Corporates delivered a healthy 4.8% as credit spreads narrowed.

Continuing its momentum from October, the Nasdaq 5HANDL Index returned 4.3% for the month. The Nasdaq 7 HANDL Index, the 1.3x leveraged version of the index, gained 5.5% in August while the Nasdaq 10 HANDL Index, the 2.0x leveraged version of the index, delivered an 8.3% return.

Despite being the only income investing category to deliver negative returns in November, MLPs continue to lead the way on a year-do-date basis (+32.2%) and remain the only income-oriented category with positive returns. Not surprisingly, the worst performing categories on a year-to-date basis provide equity exposure, with the Core Large Cap Equity category down 21.7%. Dividend Equity and REITs performed in line with the Core Large Cap Equity category, with each returning -21.1% on a year-to-date basis.

The Nasdaq 5HANDL Index is down 10.5% year to date, versus returns of -13.9% and -22.4% for the Nasdaq 7 HANDL Index and Nasdaq 10 HANDL Index, respectively.

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