Best & Worst Monthly Performers: January 4 Edition

Here is a look at the 25 best and 25 worst ETFs from the past week. Traders can use this list to find prospective candidates that have deviated too far from their longer-term trends, thereby serving as potential starting points for those looking to take on either short or long positions. Likewise, traders can also use this list to spot potential trend reversal opportunities that may offer a generous risk/reward. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETF Database premium content, sign up for a free 14-day trial to ETF Database Pro. All three market indices closed lower after Fed’s rate hike in December and as bond yields increased. Breakwave Dry Bulk Shipping ETF (BDRY ) featured on the best performing ETFs’ list with ~24% monthly returns as dry bulk shipping demand is expected to gain from easing COVID norms in China. Many China-focused ETFs predominated in this month’s list. Global X MSCI China Communication Services ETF (CHIC A-), KraneShares CSI China Internet ETF (KWEB B), and Global X China Consumer ETF (CHIQ B-) ranked among the monthly best performing ETFs’ list as China stocks rallied after the country announced the easing of COVID restrictions and dropping quarantine requirements for inbound passengers. Several silver funds such as Sprott Physical Silver Trust (PSLV ), Aberdeen Standard Physical Silver Shares ETF (SIVR B+), and iShares Silver Trust (SLV B-) featured on the best performing ETFs list as prices of the precious metals gained mainly due to speculations around future interest rate hikes. The US Fed is expected to raise the interest rate by another 50 bps in February 2023. iPath Series B Bloomberg Tin Subindex Total Return ETN (JJT B) and iPath Series B Bloomberg Nickel Subindex Total Return ETN (JJN C+) ranked among the best performing ETFs last month, as commodity prices strengthened from strong demand expected on the back of a recovery in China’s economy. iShares MSCI Turkey ETF (TUR A-) is gaining from higher energy prices and earnings are increasing in nominal terms even though the lira is declining against the US dollar amid hot inflation and lower interest rates. Read about our ETF of the Week. To compare this month’s list with the one published on December 7, click here.Best Performing ETFsWorst Performing ETFs Credit Suisse S&P MLP Index ETN (MLPO C) topped the worst performing ETFs list with over -67% monthly returns. MLP funds fell on expectations of interest rate hikes in the future. The energy sector declined by more than 3% in the last month. Oil prices also remained challenged amid rising COVID cases in China. iPath Bloomberg Natural Gas Subindex Total Return ETN (GAZ C) and United States Natural Gas Fund (UNG B-) featured on the list of worst performing ETFs driven by warmer than expected weather forecast and lower heating demand. AdvisorShares Poseidon Dynamic Cannabis ETF (PSDN ), AdvisorShares Pure US Cannabis ETF (MSOS ) and Roundhill Cannabis ETF (WEED ) ranked on the worst performing ETFs’ list last month as cannabis stocks witnessed pressure from a report on U.S. CBD regulation. Check out our Marijuana ETFs’ list here. Several Tesla focused funds like GraniteShares 1.25x Long TSLA Daily ETF (TSL ) and YieldMax TSLA Option Income Strategy ETF (TSLY ) made it to the list as shares of Tesla continued to fall amid demand concerns for Tesla vehicles and Elon Musk’s growing interest in Twitter. Many bitcoin and crypto-funds like Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (RIGZ C), AdvisorShares Managed Bitcoin Strategy ETF (CRYP ), and Valkyrie Bitcoin Miners ETF (WGMI ) were the worst performing candidates as they suffered a blow from the Fed’s policy tightening and collapse of FTX last month. Please note that this list is updated on a monthly basis. For more ETF analysis, make sure to sign up for our free ETF newsletter. Disclosure: No positions at time of writing.