Active vs. “Quasi-active” Smart Beta - U.S. ETF Developments to Watch in 2023 #4

For ETF investors, 2022 was a year to forget. Of the 2,801 non-leveraged ETFs in the U.S. as of year-end 2022, only 349 (12%) had positive returns for the year. Ten of the eleven GICS sectors in the U.S. had negative returns, with energy being the sole bright spot. As shown in Figure 1, commodities was the only major asset class that had positive returns, with bonds and most major broad market equity indices experiencing negative returns.