The Tables Have Turned: Resources ETFs Soar while Tech Funds Suffer

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The pandemic has caused a massive shift in the stock market, with resources ETFs soaring while tech funds suffer.

The last year of 2022 proved challenging for investors, as exchange-traded funds (ETFs) focused on resources and commodities outperformed those concentrated in technology and cryptocurrency markets. An analysis of the most successful and least successful ETFs from this tumultuous period has revealed these trends.

According to ETFtracker’s investment data analysis, Betashares’ global energy exchange-traded fund (ASX: FUEL) returned an impressive 40.79% in 2022, making it the top non-leveraged product on the market. This remarkable growth was likely triggered by a surge of mining and energy stocks that year.

“Oil and gas, while heavily affected by global events, appears to be slowly recovering,” said a spokesperson from ETFtracker.

Despite its impressive performance, the only investments that did better than it was leveraged Global X’s Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS), returning a whopping 81.61%, and Betashares’ US Equity Strong Bear Hedge Fund (ASX: BBUS) coming in second with 44.18%.

On the contrary, Betashares’ crypto innovators ETF (ASX: CRYP) was by far the worst performer, with an 81.97% decrease in value, while Global X’s ultra-long Nasdaq 100 hedge fund (ASX: LNAS) lost 70.36%. Unrelenting financial turmoil has wreaked havoc on these investments and left investors helpless.

“The pandemic has led to a great deal of uncertainty and risk for investors, with tech funds finding it particularly difficult to keep up,” said the ETFtracker spokesperson.

The effects of the pandemic on the stock market have been far-reaching, with resources ETFs capitalising on the ensuing financial chaos. This shift away from technology-based investments is likely to continue for some time, with investors instead opting for steadier, more reliable options.

“As we enter 2023, investors can expect resources ETFs to continue their surge as the global economy recovers and demand for commodities increases. The future is uncertain, but those who have remained patient and diversified their portfolio with resources ETFs may be rewarded,” the ETFtracker spokesperson concluded.

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