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Oil stocks are set to rise in 2022, so it's no surprise that mutual funds that track the energy sector have been winners on Wall Street this year. But the surprise top fund of the year: it invests in various Turkish companies.
The MSCI Turkey iShares exchange-traded fund more than doubled on Dec. 19, according to Morningstar Direct. The fund owns significant stakes in Turkish financial giant Akbank, Istanbul-based retailer Bim and holding company Turkish Airlines.
Turkey, like the rest of the world, has been hit hard by inflation and its currency, the lira, has fallen against the US dollar and other major world currencies.
So why win big?
Turkey's stock market is booming because the country is doing what no one else is doing: its central bank has cut interest rates to support consumer spending. Turkish President Recep Tayyip Erdogan wants prices to remain low. He even fired several central bankers who refused to cut interest rates in recent years.
Turkey's economy has slowed recently due to high unemployment, but Turkish stocks have not been affected by the volatility. The iShares Turkey ETF has also seen energy prices rise, with the Tüpraş refinery one of the biggest holding companies.
US and other international oil funds and ETFs also top Morningstar Direct's list. (Morningstar Direct released its 2022 rankings of the best and worst mutual funds and ETFs to CNN Business, excluding leveraged funds that make big bets on stock market indexes.)
The 12-month US natural gas (UNL), Energy SPDR (XLE) and several oil/energy funds managed by major investment firms such as iShares Fidelity, Vanguard and BlackRock (BLK) are up 50-80%. %. % General.
Look at the losers
In a challenging year for stocks in 2022, there have been far more losers than winners in the world of mutual funds and ETFs. The SPDR S&P 500 ETF ( SPY ) and Invesco QQQ ( QQQ ), which track the S&P 500 and Nasdaq 100, fell 19% and 31%, respectively.
But no money has suffered more than Russia-linked ETFs.
Most funds invested in major Russian companies were liquidated or closed after Vladimir Putin's final decision in February to invade Ukraine.
Investments in Russian ETFs from iShares, VanEck and Voya are almost liquidated.
The cryptocurrency carnage has also hit many funds hard. The price of bitcoin was already falling before the previous cryptocurrency FTX Unicorn crashed. But the stunning death of Sam Bankman-Freed further shocked the industry.
Funds from Osprey, Grayscale, VanEck (again), Global X, Bitwise, First Trust, Invesco and many other institutional investment firms are down over 70% in 2022.
Another once popular fund has been hit hard this year.
Cathy Wood's Ark ETFs, which have significant exposure to Tesla ( TSLA ) , Coinbase , Zoom ( ZM ) , Roku ( ROKU ) and other tech stocks that have fallen in 2022, were among the biggest losers .
This year, the bank also included several funds specializing in cannabis stocks. AdvisorShares, Global X and Amplify cannabis industry ETFs are down over 60%. As more states are legalizing recreational and medical cannabis, intense business competition is making it difficult for cannabis companies to turn a profit.
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