The Global X Ultra Short Nasdaq 100 Hedge Fund was Australia’s best-performing ETF last year, according to data from Stockspot and Morningstar, delivering a return of 81.9 per cent.
The ETF, which trades under the ticker code SNAS, aims to provide investors with geared returns that are negatively related to the returns of the Nasdaq 100 Index.
With this strategy, SNAS benefitted from the 33.0 per cent decline experienced by the Nasdaq 100 over the course of the year, the index’s worst performance since the GFC in 2008.
The second best-performing ETF was the BetaShares U.S. Equities Strong Bear Hedge Fund – Currency Hedged (BBUS) with a return of 44.0 per cent.
BBUS seeks to generate magnified returns that are negatively correlated to the returns of the US share market. The US benchmark S&P 500 sank by 19.4 per cent in 2022.
Next up was the BetaShares Global Energy Companies ETF – Currency Hedged (FUEL), which returned 40.7 per cent. Oil and gas prices surged in the fallout of Russia’s invasion of Ukraine, helping make the energy sector one of the standout performers of the year.
Two ETFs with exposure to the local resources sector — the BetaShares Australian Resources Sector ETF (QRE) and the SPDR S&P/ASX 200 Resources Fund (OZR) — rounded out the top five performers, delivering returns of 23.0 per cent and 22.9 per cent, respectively.
Turning to the year’s worst performers, the BetaShares Crypto Innovators ETF (CRYP) suffered a loss of 81.9 per cent amid widespread losses across cryptocurrency markets.
While CRYP remains available to investors, a number of other crypto-related ETFs, including from 3iQ Digital Asset Management and Cosmos Asset Management, have been shuttered.
After the weak performance of the Nasdaq 100 in 2022, the Global X Ultra Long Nasdaq 100 Hedge Fund (LNAS) fell 70.3 per cent to be the second worst-performing ETF.
The Montaka Global Extension Fund (Quoted Managed Hedge Fund) with the ticker code MKAX dropped 47.6 per cent, while the BetaShares Geared U.S. Equity Fund – Currency Hedged (Hedge Fund) with the ticker code GGUS declined by 47.1 per cent.
Finally, the fifth worst-performing ETF was the Hyperion Global Growth Companies Fund (Managed Fund). The ETF, which trades under the ticker code HYGG, fell by 42.9 per cent.
VanEck has predicted that the assets under management of the Australian ETF industry will hit $150 billion in 2023, up from around $136 billion at the end of November last year.
