Buy, hold, sell: Best and worst performing ETFs of the year

Sarah Gonzales (SELLING): For me, it also sells. As Felicity mentioned, it doesn’t expose you to the spot price of oil, it exposes you to futures contracts. This is a fully synthetic ETF. For us, we are trying to stay away from 100 percent synthetic ETFs and oil prices have increased a bit. It’s very difficult to see it continue in the next 12 months.

Selby Allies: It’s actually already sold out, down about 22 percent over the past month.

BetaShares Global Energy Company ETF (ASX: FUEL)

Selby Allies: We’ll talk about our ETFs next. This is FUEL, the BetaShares Global Energy Company ETF. It returned about 59.24 percent over the 12 months to the end of May. Stay with you Sarah. Is it buy, hold or sell?

Sarah Gonzales (SELLING): Again, this is a sale for me, and for reasons similar to the first. Oil and gas prices have risen quite high. This ETF gives oil and gas companies exposure across the supply chain, but they are still exposed to the price of that oil.

Selby Allies: This one has a management fee of 0.57 percent, and actually sold about 16 percent over the past month. Felicity to you. Is it buy, hold or sell?

Felicity Thomas (BUY): I’m actually going to make a purchase because it owns some of the biggest energy companies in the world and energy generation will actually increase 150 percent by 2030. I think it’s a buy.

VanEck Australian Resources ETF (ASX: MVR)

Selby Allies: Later today, we have the VanEck Australian Resources ETF. It returned about 22.57 percent over the 12 months to the end of May. They have a management fee of about 0.35 percent per year. Felicity, is it buy, hold or sell?

Felicity Thomas (HOLD): I’ll go to hold on for now. The reason is, if the price of iron ore weakens, we might be in a bit of trouble. But continue for dividends. We love resources for dividends.

Selby Allies: And investors love dividends too. Similarly, this one has been sold out recently. That’s down about 17 percent over the past month. Sarah, is it buy, hold or sell?

Sarah Gonzales (SELLING): This was a hold for me, but ultimately sales moved forward. This ETF focuses mostly on Australian commodities, which consist mostly of iron ore. With this ETF, the top five make up 50 percent of the portfolio. But can you get better exposure in the broader based index that is the Aussie? Possible.

Selby Allies: Okay, I’ll push you for one. Will it be held or sold?

Sarah Gonzalez: This is a sale for me.

ETFS S&P Biotech ETF (ASX:CURE)

Selby Allies: Let’s move on to some of the worst players over the past year. First we have ETFS S&P Biotech ETF. The ticker is CURE. It was down about 40.09 percent over the 12 months to the end of May. It has a management fee of 0.45 percent per year. Stay with you Sarah, is it buy, hold or sell?

Sarah Gonzales (HOLD): This is the handle for me. Biotech is completely sold out and I think it has a way of recovering. The person who holds it must continue to hold it.

Selby Allies: This has actually increased over the past month. Up about 11 percent. For you Felicity. Is it buy, hold or sell?

Felicity Thomas (BUY): I’ll go with buying. I seem to like buying ETFs for the long term. We have an aging population, and what is the most important thing in the world? your health. Biotech, healthcare and life sciences, that’s where you’ll want to invest for decades to come.

BetaShares Asia Technology Tigers ETF (ASX:ASIA)

Selby Allies: Next up we have the BetaShares Asia Technology Tigers ETF. The trigger is ASIA. It was down 32.07 percent over the 12 months to the end of May. It has a management fee of about 0.67 percent per year. Is it buy, hold or sell?

Felicity Thomas (BUY): This is a purchase for me. The reason is because it has a very solid name. Like your Alibaba, your Tencent, and have sold significantly. Also, Asia’s GDP growth is predicted to be more than 5 percent for 2022 and 2023. So buy from me.

Selby Allies: This one has been pretty flat over the past month. Is it buy, hold or sell?

Sarah Gonzales (SELLING): This is a sale. There is no doubt that Asia is growing, but exposure to China, Taiwan and Hong Kong accounts for about 73 percent of these ETFs. There is always a risk of further regulation at a given company, so for me, this is a sale.

ETFS Long Nasdaq 100 Hedge Fund (ASX: LNAS)

Selby Allies: Last but not least today, we have the ETFS Long Nasdaq 100 Hedge Fund. The ticker is LNAS. It was down 25.75 percent over the 12 months to the end of May. It has a management fee of 1 percent per year, slightly more expensive. Sarah, the last one for you today. Is it buy, hold or sell?

Sarah Gonzales (HOLD): For me, it’s a grip. I think this ETF has sold quite a lot and I hope the market recovers, and when that happens, this ETF will start working.

Selby Allies: This one hasn’t performed well over the past month, dropping a further 21 percent on the month as the NASDAQ is down 5 percent. For you Felicity. The last one for you today, is it buy, hold or sell?

Felicity Thomas (BUY): I would say buy because interest rates are expected to start cutting next year, and this may be quite volatile for the next few months. But once that rise happens, you don’t want to miss out.

Selby Allies: I can’t believe we’re already talking about cutting rates. I hope you enjoyed that episode of Buy Hold Sell. If you did, why not give a like, remember to subscribe to our YouTube channel. We add so much great content every week.

Buy Hold Sell is a weekly video series produced by Livewire Markets.

Disclaimer: The information contained in this presentation is general in nature and should not be relied upon. Before making any investment financial planning decision, you should consult with a licensed professional who can advise you whether the decision is right for you. Contributors to this event may have a commercial or financial interest in the companies mentioned.

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