Divergent Start To October

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Includes: ASHR, EWH, EWW, EWZ, PIN, UNG, USO, XLE, XLF, XLI, XLY
by: Bespoke Investment Group

Below is a snapshot of asset class performance to start the month of October. We also include performance over the last month and year to date.

The month has gotten off to a pretty strange start, with equity ETFs going in different directions. Small-cap ETFs have gotten hit very hard, while large-caps are in the green. Both consumer sectors are in the red, with Consumer Discretionary (NYSEARCA:XLY) off by 2% already. On the upside, Energy (NYSEARCA:XLE), Financials (NYSEARCA:XLF), and Industrials (NYSEARCA:XLI) have seen a wave of buying.

Outside of the US, Brazil (NYSEARCA:EWZ) is already up 9% in October, while India (NYSEARCA:PIN) is down more than 3%. Prior to September, India had been performing relatively well this year, but an 11.85% drop over the last month has sunk the country's equity market deep into the red. China (NYSEARCA:ASHR), Hong Kong (NYSEARCA:EWH), and Mexico (NYSEARCA:EWW) are all down more than 2% this month already as well.

Commodities ETFs are on fire, especially energy-related ones. Oil (NYSEARCA:USO) is up 3.6% month to date, while natural gas (NYSEARCA:UNG) is up 8%. Finally, Treasury ETFs have fallen quite a bit so far in October as interest rates have broken out higher.