Looking Back at April Through an ETF Lens
Global markets picked themselves up off the mat last month.
Global financial markets picked themselves off the canvas and came back swinging in April. Here, I will look at how major asset classes performed, where investors were putting their money, and whether there may still be bargains--all through the lens of exchange-traded funds.
Don't Call It a Comeback
Most major asset classes bounced back in April. Of the 2,130 nonleveraged exchange-traded products in Morningstar’s U.S. database, just 160 (7.5%) posted losses for the month. Prominent among them were funds investing in municipal bonds and ETPs that invest in oil futures. Municipal bond markets saw continued price pressure in April; the outlook for state and local government budgets continues to deteriorate as tax revenues shrivel. Oil-based ETPs experienced sharp price declines as lousy market fundamentals kept pressure on prices and the front-month futures contract tipped into negative territory for the first time in history.
Ben Johnson has a position in the following securities mentioned above: IJH, IJR. Find out about Morningstar’s editorial policies.