Equity markets tanked last week following the hot inflation report that investors believe will force the Fed’s hand with larger rate increases. U.S. large, mid- and small-caps all performed similarly, loosing between 4.5% and 4.8% of their value, while foreign shares held up a little better, falling just over 3%.<\/p>\n\n\n\n
This week’s valuation update focuses on dividend yields. While stocks in the S&P 500 SPDR (SPY<\/a>) offer a paltry yield of just 1.8%, below their 10 year average of a still-paltry 2.0%, foreign stocks offer yields at least twice as much (3.6%-3.8%), well above their 10 year averages.<\/p>\n\n\n\n TABLE 1: Major Benchmarks: Weekly Total Returns and Valuation Update<\/strong> Source: FactSet Research Systems and ETF Research Center. <\/em> <\/p>\n\n\n\n All 11 sectors fell last week. Materials sold off the hardest at 6.6%, but followed closely by Industrials, Communication Services, Tech and Real Estate. Health Care fared best (-2.3%) followed by Energy (-2.7%).<\/p>\n\n\n\n Real Estate, Energy and Utilities offer the highest yields, all above 3.0%, but only Real Estate’s yield of 3.4% is above its 10 year average. Utilities, traditionally a higher yielding sector, has a yield of 3.1%, well below its 10 year average of 3.7%. Meanwhile the lowest yields are found in the Consumer Discretionary sector at just 1.0%, but that is in line with the sector’s historical average.<\/p>\n\n\n\n TABLE 2: Major Sectors: Weekly Total Returns and Valuation Update<\/strong> Source: FactSet Research Systems and ETF Research Center. <\/em> *Note: Fewer than 10 years of valuation history available.<\/em> <\/p>\n","protected":false},"excerpt":{"rendered":" Performance review and valuation update for the week ending September 16, 2022.<\/p>\n","protected":false},"author":2,"featured_media":2131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[222,6],"tags":[22,49,202,259,137,4],"class_list":["post-2168","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundamentals","category-sector-etfs","tag-eem","tag-efa","tag-iwm","tag-mdy","tag-qqq","tag-spy","description-off"],"_links":{"self":[{"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/posts\/2168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/comments?post=2168"}],"version-history":[{"count":10,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/posts\/2168\/revisions"}],"predecessor-version":[{"id":2180,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/posts\/2168\/revisions\/2180"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/media\/2131"}],"wp:attachment":[{"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/media?parent=2168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/categories?post=2168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfrc.com\/articles\/index.php\/wp-json\/wp\/v2\/tags?post=2168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Week ending September 16, 2022<\/em> <\/p>\n\n\n\nTicker<\/strong><\/td> Fund<\/strong><\/td> Return<\/strong><\/td> Fwd. Yld<\/strong><\/td> 10 yr. Avg<\/strong><\/td> Prem\/Disc.<\/strong><\/td><\/tr> SPY<\/a><\/td> SPDR S&P 500 ETF Trust<\/td> -4.8%<\/td> 1.8<\/td> 2.0<\/td> -10.0%<\/td><\/tr> QQQ<\/a><\/td> Invesco QQQ Trust<\/td> -5.8%<\/td> 1.0<\/td> 1.3<\/td> -23.1%<\/td><\/tr> MDY<\/a><\/td> SPDR S&P Midcap 400 ETF Trust<\/td> -4.7%<\/td> 1.8<\/td> 2.3<\/td> -21.7%<\/td><\/tr> IWM<\/a><\/td> iShares Russell 2000 ETF<\/td> -4.5%<\/td> 1.8<\/td> 2.9<\/td> -37.9%<\/td><\/tr> EFA<\/a><\/td> iShares MSCI EAFE ETF<\/td> -3.3%<\/td> 3.8<\/td> 2.9<\/td> 31.0%<\/td><\/tr> EEM<\/a><\/td> iShares MSCI Emerging Markets ETF<\/td> -3.1%<\/td> 3.6<\/td> 2.3<\/td> 56.5%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Week ending September 16, 2022 <\/em><\/p>\n\n\n\nTicker<\/strong><\/td> Fund<\/strong><\/td> Return<\/strong><\/td> Fwd. Yld<\/strong><\/td> 10 yr. Avg<\/strong><\/td> Prem\/Disc.<\/strong><\/td><\/tr> XLC<\/a><\/td> Communication Services Select Sector SPDR*<\/td> -6.3%<\/td> 1.1<\/td> 1.1<\/td> 0.0%<\/td><\/tr> XLY<\/a><\/td> Consumer Discretionary Select Sector SPDR<\/td> -4.0%<\/td> 1.0<\/td> 1.2<\/td> -16.7%<\/td><\/tr> XLP<\/a><\/td> Consumer Staples Select Sector SPDR<\/td> -3.6%<\/td> 2.7<\/td> 2.9<\/td> -6.9%<\/td><\/tr> XLE<\/a><\/td> Energy Select Sector SPDR<\/td> -2.7%<\/td> 3.3<\/td> 3.5<\/td> -5.7%<\/td><\/tr> XLF<\/a><\/td> Financial Select Sector SPDR<\/td> -3.8%<\/td> 2.4<\/td> 2.0<\/td> 20.0%<\/td><\/tr> XLV<\/a><\/td> Health Care Select Sector SPDR<\/td> -2.3%<\/td> 1.7<\/td> 1.9<\/td> -10.5%<\/td><\/tr> XLI<\/a><\/td> Industrial Select Sector SPDR<\/td> -6.4%<\/td> 2.0<\/td> 2.3<\/td> -13.0%<\/td><\/tr> XLB<\/a><\/td> Materials Select Sector SPDR<\/td> -6.6%<\/td> 2.3<\/td> 2.2<\/td> 4.5%<\/td><\/tr> XLRE<\/a><\/td> The Real Estate Select Sector SPDR*<\/td> -6.3%<\/td> 3.4<\/td> 3.3<\/td> 3.0%<\/td><\/tr> XLK<\/a><\/td> Technology Select Sector SPDR<\/td> -6.2%<\/td> 1.1<\/td> 1.5<\/td> -26.7%<\/td><\/tr> XLU<\/a><\/td> Utilities Select Sector SPDR<\/td> -3.8%<\/td> 3.1<\/td> 3.7<\/td> -16.2%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n