Our monthly recap of the best performing and worst performing European exchange traded products has been updated again. Carbon, coffee, semiconductor and cryptocurrency ETFs were on the rise, while travel and energy funds were hammered by the new variant of the coronavirus.

The top 20 exchange-traded products (ETP) is led in November by SparkChange Physical Carbon EUA ETC (CO2), issued by HANetf in collaboration with SparkChange (a provider of investment products and data specializing in carbon), followed by WisdomTree Carbon ETC (CARPE). Both are designed to offer investors a way to access the European Union’s carbon dioxide emission allowance market, as they track the spot price of physical EUAs, “permits to pollute”. These are certificates the purchase of which is made compulsory by the European Commission for industrial installations that exceed the carbon emission limits authorized by Europe.

In third position, we find 21Shares Binance BNB ETP (ABNB), which has gained 1,987% in the past year. On November 16, the number of daily transactions on Binance Smart Chain nearly reached 15 million, more than the Bitcoin and Ethereum blockchains combined, making it the first blockchain network to do so.

The past month also saw a spike in the VIX Index, which measures the volatility of the S&P 500. Following concerns over the new Omicron variant and the now widely held belief that inflation is anything but a transitory phenomenon (as new Federal Reserve Chairman Jerome Powell admitted) the markets have faced great uncertainty. November 2021 was indeed the most volatile month for the US S&P 500 stock index since February 2020. Lyxor S&P 500 VIX Futures Enhanced Roll UCITS ETF C-EUR (LVO) gained 15.6%.

As evidenced by the performance of WisdomTree Coffee ETC (COFF), the price of coffee rose by more than 15 percentage points in November, reaching its highest level in a decade. Drought and lower than usual temperatures in coffee producing countries affected the harvest; in terms of supply, transport problems and disruptions continued to play a role, as coffee is generally refined in areas outside the producing regions.

In sixth and seventh positions are two thematic trackers exposed to the semiconductor sector, the VanEck Vectors Semiconductor UCITS ETF (SMH) and the iShares MSCI Global Semiconductors UCITS ETF USD Acc (SEMI). Demand is incredibly high for these types of chips, which are essential for a significant number of products, including smartphones and cars. As long as supply remains tight, stocks of companies that manufacture or market semiconductors are likely to continue to have plenty of room to grow.

The latecomers

The biggest losers last month were the trackers – Invesco (SC0R), Lyxor (TRV) and iShares (EXV9) – of the STOXX Europe 600 Travel & Leisure Index, exposed to the transport and tourism sector, and particularly affected by fears of possible new lockdowns and restrictions following the resurgence of coronavirus infections that have hit Europe in recent weeks.

Among the laggards, there are no less than 15 funds with varying exposure to the energy sector. The declines were driven, once again, by the discovery of the Omicron variant, which cast an increasingly long shadow over global demand growth, added additional complications to supply chains and weighed heavily on on economic growth forecasts.

In addition, the United States and other major oil consuming countries – such as China, Japan, India, South Korea and the United Kingdom – have decided to dip into their emergency oil stocks. , a sign of the growing concern of political decision-makers about the rise in crude oil prices and more generally about the contribution of energy prices to the rise in inflation.

According to the International Energy Agency, which monitors global oil supplies on behalf of the world’s major economies, there have been three coordinated stock releases since the agency’s inception: before the Gulf War in 1991, after Hurricanes Katrina and Rita damaged oil facilities in the Gulf of Mexico in 2005, and in response to the supply disruption caused by the war in Libya in 2011.

the worst performing ETFs

A note on the methodology

We looked at the major trends for the eleventh month of the year, excluding reverse and leveraged funds. These instruments, being purely passive products, reflect the evolution of the markets without the bias (good or bad) of an active manager.


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