ETF Performance Report: September & Q3

Markets ETF Trends

U.S. equities and stock exchange traded funds strengthened in the third quarter but stuck to sideways trading through most of the past few weeks. Meanwhile, speculation of an interest rate hike caused a mild pullback in mid-September.

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The Dow Jones Industrial Average gained 2.0% over the third quarter of 2016. Meanwhile, the Nasdaq Composite increased 9.2% and the S&P 500 was 3.1% lower.

The top performing non-leveraged ETFs of the third quarter include the VanEck Vectors Coal ETF (NYSEArca: KOL) up 28.1%, BioShares Biotechnology Clinical Trials Fund (NasdaqGM: BBC) up 25.8% and PowerShares Dynamic Semiconductors Portfolio (NYSEArca: PSI) up 24.1%.

China has helped coal prices and the industry reverse course this yer after Beijing imposed a five-day week working week for domestic mines in an attempt to diminish an oversupplied market.

SEE MORE: Mining ETFs Could Mount Another Rally

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The biotechnology companies, notably smaller biotechs, have rallied on increased merger and acquisition activity, along with the faster pace of Food and Drug Administration approvals on new medications.

SEE MORE: Biotechnology ETFs Rally on Sarepta FDA Drug Approval

Technology stocks, which were neglected earlier this year along with other growth stocks, rallied as risk sentiment returned, following the so-called Brexit vote.

SEE MORE: Technology ETFs Are Making a Strong Comeback

The worst performing non-leveraged exchange traded products of the third quarter include the REX VolMAXX Long VIX Weekly Futures Strategy ETF (BATS: VMAX) down 46.3%, VelocityShares Daily Long VIX Short-Term ETN (NYSEArca: VIIX) down 38.3% and iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) and down 38.3%.

The Dow Jones Industrial Average fell 0.5% over the past month. Meanwhile, the Nasdaq Composite gained 1.8% and the S&P 500 dipped 0.1%.

The best performing non-leveraged ETFs of September include the United States Gasoline Fund (NYSEArca: UGA) up 15.0%, BBC up 13.1% and KOL up 12.0%.

Gasoline prices have increased after demand this summer hit levels not seen since the recession nine years ago. Along with the increased demand, the energy market has been buoyed by speculation of a production freeze among major producing countries and the Organization of Petroleum Exporting Countries.

The worst performing non-leveraged ETPs of the month include the iPath Bloomberg Livestock Subindex Total Return ETN (NYSEArca: COW) down 14.4%, iPath Pure Beta Livestock ETN (NYSEArca: LSTK) down 14.3% and UBS E-TRACS CMCI Livestock Total Return ETN (NYSEArca: UBC) don 13.6%.

For more information on the ETF market, visit our ETF performance reports category.

This article was provided by our partners at ETFTrends.