**The topic of the current economic state is undoubtedly controversial, and you could argue either way. In fact, even economists and leading experts are torn about the general disposition of the US as well as the global economy as a whole. Nevertheless, the concept of "Bear and Bullish Market" pertains more to the "market sentiment" in the stock market rather than a pure reflection of the economic state of a country. Thus, we can have gloomy economic data, but if investors are optimistic that it will improve soon or this negative data has already been "priced in," then we might see a "bullish run" where stock prices start to go up.

Indeed, we also have seen several market cycles in recent years that include bullish and bearish periods. Currently, the "bear market" has been attributed to a general decline in stock prices, accompanied by pessimism and a lack of confidence over the foreseeable future due to the high-interest rate environment that was caused by excessive government spending during the pandemic.**

Yet, there are several reasons to believe that the bear market could be coming to an end this year. In this article, we will explore five compelling reasons why we think that the bear market could be over and the bullish run could be starting.

## 1.Strong Economic Recovery
First of all, one of the primary drivers of a bear market is a weak economic environment characterized by low economic growth, high unemployment rates, and diluted corporate earnings. However, the global economy, particularly the US, has shown signs of a strong recovery in recent months.
Moreover, the International Monetary Fund (IMF) expects the global economy to grow by 4.9% in 2023, up from an estimated growth rate of 3.5% in 2022. Lastly, unemployment rates have been declining, and corporate earnings have been robust, boosting investor confidence in the market.

## 2. Technology Sector Growth
Second, the technology sector has been a significant driver of the stock market in recent years. Generally, technology companies are among the first to react to the changing market sentiment. As a result, they are one of the biggest losers in a bear market, but at the same time, they are also among the top industries to invest in during a bull market.

Specifically, Apple, Microsoft, and Amazon have a cumulatively high-weight share in both S&P 500 and NASDAQ. In addition, the pandemic has accelerated the technology sector's growth, with many people shifting to remote work and e-commerce. Moving forward, the technology sector is expected to continue its growth trajectory, providing a massive boost to the stock market.

## 3. Pent-Up Consumer Demand
Thirdly, during the pandemic and until 2022, many consumers were forced to cut back on spending due to job losses and economic uncertainty. However, as the economy recovers, there is expected to be pent-up demand for goods and services that were either put on hold during the pandemic or have seen a massive decline in demand. Hence, we now see a rejuvenated demand for businesses in various vital sectors, including travel, entertainment, and hospitality, previously the ones that suffered the most during the pandemic.

## 4. Improving Global Trade
As we can all remember, the pandemic caused a massive disruption in global supply chains and has led to an enormous decline in international trade. However, as global economies are almost fully reopened, global trade is expected to return to its pre-pandemic levels. This boosts companies that rely heavily on international trade, which includes many of the publicly-listed companies.

## 5. Higher Highs and Higher Lows
Lastly, and perhaps the most visually compelling reason to believe that the bear market is over and we are now seeing the start of a refreshed bull market is by looking at the S&P 500's price movement (benchmark). As we can see, the market has been trending higher and higher and has been making higher highs and higher lows. This is indicative that the bear market is indeed finally over.


![Bear 2.jpg](/uploads/Bear_2_e186bba776.jpg)


# Conclusion

All in all, there are several compelling reasons to believe that the bear market could be over and that the bullish run could be starting. The strong economic recovery, growth in the technology sector, pent-up consumer demand, improving global trade, and the S&P 500's price movement are all promising signs that suggest a brighter outlook for the market.

However, it is essential to note that the market is always subject to unexpected events and uncontrollable factors, such as a "Black Swan" in the form of the COVID-19 pandemic, which could potentially disrupt our positive trajectory. Therefore, staying vigilant and informed is crucial. Fortunately, there are now data visualization tools such as ETF Insider that help us do our due diligence and make sure we are well diversified across multiple industries and avoid overexposure and excessive fund overlaps that could detrimentally impact our investment over the long term.

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In this article, we will explore five compelling reasons why we think that the bear market could be over and the bullish run could be starting.

Why The Bear Market Could Be Finally Over

When evaluating a fund's performance, it's easy to get caught up in the overall number at the end of the trading day and lose sight of the fact that it's essentially just the sum of its parts (or individual holdings). In other words, a fund's performance, regardless of the difference in weight methodology, is determined by the performance of the combined individual securities it holds.

Yet, not all are created equal; this is undoubtedly the case with all funds (both passively and actively managed). As shown in the table below, we gathered data for the top 3 indices in the US, which are simultaneously used as a benchmark and gauge of the overall market sentiment.



At first glance, we can see an overwhelming overrepresentation of the top 3 as well as the top 5 holdings across the three indices. Particularly NASDAQ 100’s composition, where 3 out of its total 100 stocks composition represent 1/3 of the entire index. Hence, a significant price movement from these three companies could literally shift the trajectory of the tech’s leading benchmark.
On the other hand, we can see that, despite the total number of individual holdings of the S&P 500 being 500, its top 10 holdings equate to roughly 1/4 of the whole fund composition. Meanwhile, its counterparts, [DJIA](https://etfinsider.co/analysis-quote/djia) 30's and NASDAQ 100's top 10 holdings, compose more than half of their respective fund compositions.

An equally interesting observation lies with the fund overlap of the S&P 500 and NASDAQ 100 indices. This is because both funds, despite their different fund objectives (the first representing 70-80% of the total stock market capitalization while the latter is composed of more than 50% tech stocks) both hold $AAPL, $MSFT, and $AMZN as their top 3 holdings. This inadvertently represents a massive fund overlap between the two as well as, depending on your personal investment goals, overexposure to these companies.

![Funds 1.jpg](/uploads/Funds_1_8f03d95d7a.jpg)

Therefore, it's paramount that we don't just look at the overall performance when evaluating a fund because this could be a blindside that is so easy to miss or ignore altogether. Thankfully, with the advancement of technology, it's much easier to pinpoint and address this with the help of sophisticated data visualization tools like ETF insider. Nevertheless, it's essential to always remember to do our due diligence before investing in anything (and yes, it includes these three gold standard indices).
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When evaluating a fund's performance, it's easy to get caught up in the overall number at the end of the trading day and lose sight of the fact that it's essentially just the sum of its parts (or individual holdings). In other words, a fund's performance, regardless of the difference in weight methodology, is determined by the performance of the combined individual securities it holds.

How a Funds Performance is Essentially Just the Sum of its Parts [R]

As the world continues to embrace remarkable technological advancements, particularly in Artificial Intelligence (AI), it's essential for us investors to stay ahead of the curve and capitalize on this rapidly growing industry. One way to best do this is by investing in leading AI Exchange Traded Funds (ETFs). In a nutshell, an AI ETF is a fund that invests in companies involved in developing and applying AI technology. Moreover, because of the inherently higher risk associated with these companies, these ETFs provide investors with exposure to a diverse range of companies in the AI sector, reducing the risk associated with investing in individual stocks.

In this list, we compiled five of the best-performing AI ETFs this year for you to take a look at:

![Best AI ETF 2.jpg](/uploads/Best_AI_ETF_2_66cc25aecd.jpg)

## 1.Global X Robotics & Artificial Intelligence ETF ($BOTZ)

Year-to-Date (YTD) return: 15.97%
First on our list, [BOTZ](https://etfinsider.co/analysis-quote/botz) invests in companies involved in the development and production of robots, autonomous vehicles, and AI technologies. In addition, the fund also provides exposure to a diversified portfolio of companies operating in the AI space, including tech giants like Amazon and Alphabet.

## 2. First Trust AI Global Equity ETF ($AIEQ)

Year-to-Date (YTD) return: 11.37%
Like BOTZ, [AIEQ](https://etfinsider.co/analysis-quote/aieq) also invests in global companies that are involved in the development and application of AI technology. Furthermore, the fund also provides exposure to a well-diversified portfolio of AI companies, including leaders in the field like Microsoft and Nvidia.

## 3. ARK Innovation ETF ($ARKK)

Year-to-Date (YTD) return: 29.46%
Perhaps the most well-known in this list, [ARKK](https://etfinsider.co/analysis-quote/arkk) invests in disruptive innovation across multiple industries, including AI, genomics, and the "internet of things." Just remember that ARKK is a high-risk, high-reward option for investors looking for aggressive exposure to cutting-edge companies in the AI space.

## 4. iShares Exponential Technologies ETF ($XT)

Year-to-Date (YTD) return: 11.02%
Next on our list, if you are looking to invest in a fund that puts sustainability at its core, this fund might be perfect for you. [XT](https://etfinsider.co/analysis-quote/xt) invests in companies that are driving exponential growth in industries such as AI, biotechnology, and renewable energy. [XT](https://etfinsider.co/analysis-quote/xt) offers investors broad exposure to the most promising, innovative, and sustainability-centric companies in the AI sector.

## 5. Innovation Shares NextGen Protocol ETF ($KOIN)

Year-to-Date (YTD) return: 8.52%
Last but not least, [KOIN](https://etfinsider.co/analysis-quote/koin) invests in companies shaping technology's future through blockchain, AI, and other emerging technologies. Likewise, KOIN provides investors with exposure to a well-diversified portfolio of companies at the forefront of technological innovation.
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ETFs provide investors with exposure to a diverse range of companies in the AI sector, reducing the risk associated with investing in individual stocks.

Five of the Best AI ETFs to invest in 2023

Perhaps you may be conflicted with this question and are looking for a guide to help you out, or maybe you have already decided but are wondering if you made the right investment decisions.

Well, choosing what and how many investments to hold at any given time is no short of a delicate task, and if we add the complexities of different asset classes, there is to consider; welp! That certainly seems like complicated work to do!

Hence, we came up with a short guide to hopefully help you out by giving you a general context and objectives for the three long-term investing timeframes below.

Timeframes:

## 1.5 Years and Below

Objective: Take Advantage of a Bullish Market Cycle
Suggested Number of Asset Class: 1 (Equities)
Investments to Consider: Stocks, ETFs
First on our list is our shortest time frame. Being the shortest time frame, more than likely, investors are looking to capitalize on a bullish market cycle. Hence, we suggest focusing on equities (stocks and ETFs), particularly high-growth and tech stocks and ETFs, as they tend to perform best during bullish market cycles.

## 2. 10 to 20 Years

Objective: Resilient Long-term Capital Appreciation
Suggested Number of Asset Classes: 2 (Equities and Fixed Income)
Investments to Consider: Stocks, ETFs, Bonds
Next on our list is where most long-term investors classify their investment horizons. In addition to equities, we also suggest holding a fixed-income security or ETF to build a resilient portfolio. This is because, during this longer-term horizon, it is normal to experience multiple market cycles. Historically, fixed-income securities served as a "hedge" during market downturns. Thus, providing the "resiliency" factor in your portfolio.

![Investments and Asset 2.jpg](/uploads/Investments_and_Asset_2_df641b0def.jpg)

## 3. 20 Years and Beyond

Objective: For a Comfortable Retirement
Suggested Number of Asset Classes: 3 (Equities, Fixed Income, and Money Market Instruments
Investments to Consider: Stocks, ETFs, Bonds, and Money Market Fund
Last but definitely not least, if your horizon is more than 20 years, then more than likely, you are aiming to build your retirement fund. We suggest gradually adding a money market fund or ETF into your portfolio mix to lessen your risk, as these securities tend to be on the lower end of the spectrum in terms of risk and return.
The goal here is when you are nearing your retirement age, your exposure to risky assets needs to be reduced, as any significant market fluctuation can have a detrimental effect on your overall portfolio. Hence we suggest prioritizing protecting your portfolio.
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Perhaps you may be conflicted with this question and are looking for a guide to help you out, or maybe you have already decided but are wondering if you made the right investment decisions.

Short Guide: How Many Investments and Asset Classes to Hold on Different Timeframes (5, 10, and 20 years) [T]

The world of investing can easily be seen as complex and complicated. Thus, it's crucial to have a clear investment philosophy. For John "Jack" Bogle, the founder and former CEO of Vanguard Group and coined as the "Father of Index Fund," that philosophy is simple - low-cost index funds are the way to go.
In this article, we'll dive deeper into some of the most compelling reasons why Jack Bogle believes in the power of index funds and why you may want to consider them to be a cornerstone of your investment portfolio.

## 1) Diversification

First of all, one of the primary reasons that Jack Bogle is a massive proponent of low-cost index funds is because of the inherent diversification they offer. When investors purchase an index fund, they are effectively buying a small piece of the entire stock market. In simple terms, this means that their money is spread across various companies and sectors. This helps to mitigate overexposure risk, as the performance of any one company or sector will have a limited impact on the investor's overall returns.
Moreover, index funds offer exposure to a broad range of asset classes, including equities, bonds, and real estate. Hence, this diversification is particularly valuable in times of market volatility, as it can help to reduce the impact of any one asset class on an investor's portfolio.


## 2) Cost-Effectiveness

Moving forward, another fundamental advantage of index funds is their cost-effectiveness. Compared to actively managed funds, index funds are far cheaper to own. This is because index funds do not require the same level of research, analysis, and management intervention as actively managed funds, which translates into lower fees for investors. More notably, the lower costs can add up to significant savings, allowing investors to keep more of their returns over time.
Simply put, the cost-effectiveness of index funds means that investors can avoid the high fees associated with actively managed funds. In many cases, actively managed funds charge fees exceeding 1% of an investor's assets under management yearly! Since these fees compound, these fees can significantly impact investors' long-term returns.


## 3) Consistency

This might sound cliche, but remember that the goal of long-term investing is to generate consistent returns over the long term. By taking advantage of the market's overall growth over a long period, investing in index funds has historically shown consistent, positive returns. This consistency can help investors achieve their long-term financial goals.
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The world of investing can easily be seen as complex and complicated. Thus, it's crucial to have a clear investment philosophy. For John "Jack" Bogle, the founder and former CEO of Vanguard Group and coined as the "Father of Index Fund," that philosophy is simple - low-cost index funds are the way to go.

5 Reasons Why Low-Cost Index Funds are the Way to Go

In the field of finance, two vital areas that dictate the course and phase of action of many private and public institutions are traditional economic theory and behavioral economics/finance (where personal finance falls under). In this regard, James J. Choi, a notable finance professor at Yale University, examined the top 50 most famous personal finance books in 2019 to compare and contrast the two disciplines.
Yes, these personal finance books include best-selling pieces such as Robert Kiyosaki's Rich Dad Poor Dad, Ramit Sethi's I Will Teach You to Be Rich, Jesse Mecham's You Need a Budget, and of course, numerous book publications by Dave Ramsay's. Choi then likened the overarching tenets of these books to the principles of traditional economic theories.
The US National Bureau of Economic Research then published the by-products of his findings. In summary, the five comparisons he made are the following:

## Economic Theory vs. Personal Finance



## Making Sense of The Difference

The primary distinction lies in the discipline each one pursues. The traditional economic theory concentrates on objectiveness — a segment that strives to learn the most appropriate course of action for each financial and economic challenge using observable universal truths and logical measures. A highly regarded example is the "supply and demand model."
Above, we can see that the market theory endorses prioritizing the highest-interest debts first, regardless of the obligation size. This is undoubtedly a sound mathematical decision as it would yield you paying off your obligations in the most cost-efficient manner. However, this action step assumes you will be objective all throughout the repayment duration and not once waver.
For that reason, it does not account for our human tendencies, which personal finance takes into significant consideration as most individuals are more likely to get momentum and keep paying off their debts when they take the most manageable course of action — paying off their least debt first. Why? Well, this is primarily because human behavior (especially our emotions) and psychology are the crucial focus of behavioral economics/finance and, by extension, personal finance.
Understanding this provides substantial financial insights about our society. In addition, examples comprise purchasing patterns and tendencies/biases that consumer companies consider—appealing to dopamine receptors of social media users for Advertising Giants such as Meta and Twitter to foster their advertisement revenue by employing tactics that keep you scrolling and hooked.

## A Similar Perspective

Interestingly, one category is identical among the five categories — the mutual fund section. Why? This is because, time and time again, history has demonstrated that the straightforward index-following fund outperforms more than 90% of all mutual funds/ETFs.
Moreover, since a fund manager is not actively managing the fund, across-the-board fees are cheaper as management fees are out of the equation. Thus, instead of pushing to "beat the market returns," it is easier as well as cost-efficient to pick an index fund while arguably providing historically best-in-class consistent returns.



## The Bottom-line

In a way, behavioral finance/economics and economic theory are like comparing Social Science and Mathematics. Unsurprisingly, issues that both domains could solve can deliver different solutions. One aims to solve it in the most objective and rational way, while the other one takes into account that humans are creatures of emotions and, thus, we are often not logical.
The truth is that both are crucial and valuable to our overall economic system. But, more importantly, it is frequently difficult or nearly impossible to adapt landmark economic theories because of our irrational nature. We are not robots with no emotions and no innate biases. Therefore, learning why and how we do things is of utmost importance.

## The Bright Future Ahead of Us

Nevertheless, throughout history, we have demonstrated to be species that improve, learn, and adapt from our mistakes. Hence, we may one day line up our response just like in the "mutual funds" category. In fact, we are now seeing this with the introduction of sophisticated data visualization tools like ETF Insider, where you can precisely pinpoint fund overlaps and overexposure and identify specific key information about managed funds which ultimately helps us to pursue the "objectively best course of action" that economic theories propose while simultaneously preserving our humanity.

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In the field of finance, two vital areas that dictate the course and phase of action of many private and public institutions are traditional economic theory and behavioral economics/finance (where personal finance falls under). In this regard, James J. Choi, a notable finance professor at Yale University, examined the top 50 most famous personal finance books in 2019 to compare and contrast the two disciplines.

Personal Finance VS Traditional Economic Theory

Investing in the stock market can be daunting for many aspiring and even experienced investors. With countless options available, it can be overwhelming to determine the best approach to building a well-diversified portfolio that will give you the optimal return depending on your investment objective.
One prominent school of thought that has gained significant traction in recent years is the "Random Walk Theory." But what is it exactly? In this post, we will explore what this theory is all about, as well as how it supports investing in low-cost index funds.
So What on Earth is Random Walk Theory?
To simplify, Random Walk Theory is a concept that has been around since the mid-1900s. Fundamentally, the theory suggests that stock prices move randomly and that it is impossible to predict their future movement accurately.
Furthermore, the theory is based on a much-debated economic framework called the "Efficient Market Hypothesis," which asserts that all available information about a company is reflected in its stock price, making it impossible to outperform the market consistently over a sustained long period. Hence, the most optimal option is to invest in prominent index-tracking funds, better known as "market benchmarks," rather than trying to beat the market.
With this in mind, here are five ways that the Random Walk Theory supports investing in low-cost index funds:

## 1. Efficient Investing
The Random Walk Theory proposes that it is difficult to outperform the market consistently, as stock prices reflect all available information. This means that most actively managed funds will fail to generate higher returns than the market over the long term.
Thus, by investing in low-cost index funds/ETFs, investors can gain exposure to a diversified portfolio of stocks that aim to match the market's performance.

![Random Walk 1.jpg](/uploads/Random_Walk_1_401ac81f0b.jpg)

## 2. Diversification Achieved
Since the Random Walk Theory suggests that it is impossible to predict individual stocks' future movement accurately, by investing in a low-cost index fund/ETFs, investors gain exposure to a diversified portfolio of stocks that aim to match the market's performance. This diversification then helps mitigate the inherent risks associated with investing in individual stocks.

## 3. Lower Fees - Higher Return
One of the significant advantages of investing in low-cost index funds is the lower fees compared to actively managed funds. Since index funds/ETFs track a market index, they require less research and trading, resulting in lower overall costs.
Over time, these lower fees will compound and significantly impact an investor's overall returns detrimentally.

## 4. Superior Long-Term
Moving forward, by investing in low-cost index funds/ETFs, investors can adopt a long-term investment strategy that aims to match the market's performance over time. This approach can help investors avoid the common pitfalls of short-term thinking and emotional investing.

## 5. Passive Investing is the Way to Go!
Lastly, investors will be able to adopt a passive investing approach that aims to match the market's (benchmark) performance. This approach can help investors avoid the risks associated with active investing, such as managing risk, "style drift," and, of course, the often high fees.

## Conclusion
In a nutshell, the Random Walk Theory suggests that trying to outperform the market consistently is not wise and often a waste of time, effort, and money. This inadvertently makes low-cost index funds/ETFs an attractive investment option for many investors. Furthermore, investors gain exposure to a diversified portfolio of stocks that aim to match the market's performance, all while keeping fees as low as possible by leveraging a long-term passive investing approach.
Nevertheless, it is paramount to always do your research first before investing in any asset. Thankfully, there are now sophisticated data visualization tools, such as ETF Insider that help you with your due diligence. With this, you can precisely see the composition and weight of your chosen fund/s, granting you the ability to tailor your investment to your own goals while looking out for you not to be overexposed to certain assets and industries.
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Investing in the stock market can be daunting for many aspiring and even experienced investors. With countless options available, it can be overwhelming to determine the best approach to building a well-diversified portfolio that will give you the optimal return depending on your investment objective.

Random Walk Theory: What It Is and 5 Reasons it Supports Investing in Low-Cost Index Funds

In recent years, Quant Funds have gained popularity among investors seeking a more "scientific" approach to portfolio management. For starters, quantitative funds, or "quant funds," are investment vehicles that use advanced mathematical models and complex algorithms to identify and capitalize on market inefficiencies.
In this post, we will discuss five reasons why you may want to consider quant funds in your portfolio.

## 1. A systematic and objective approach
First and foremost, quant funds use a systematic and objective approach to portfolio management, which reduces the impact of human biases and emotions. The algorithms these funds use are designed to identify patterns in market data and execute trades based on those patterns. Thus, this approach removes the subjective nature of traditional investment decision-making and provides a more disciplined approach to managing a portfolio. Moreover, by relying on data and algorithms rather than individual opinions, quant funds are more likely to make consistent and rational investment decisions.

![Quant funds 2.jpg](/uploads/Quant_funds_2_cbfbfc15b5.jpg)

## 2. Consistent performance
Next, quant funds are designed to perform consistently over time. The algorithms these funds use are backtested using historical market data to ensure they are effective in different market conditions. Therefore, this rigorous testing process ensures that the funds can deliver consistent returns over the long term, which is particularly important for investors looking to build a diversified portfolio. With quant funds, investors can have more confidence in the predictability and reliability of their investments.

## 3. Diversification
As a significant advantage, these funds also provide diversification benefits to your portfolio, especially in the form of ETFs. Like other funds, quant funds invest across multiple asset classes and markets, which reduces the concentration risk of investing in a single asset or market. This diversification helps reduce the portfolio's overall risk and provides investors with exposure to a broader range of investment opportunities. Furthermore, because quant funds rely on data and algorithms, they can identify investment opportunities ahead of individual investors and fund managers.

## 4. Transparency
Because of its inherent nature, quant funds are also typically more transparent than traditional funds. The algorithms these funds use are often disclosed to investors, which provides greater transparency and allows investors to understand how the fund is fully managed. This transparency is crucial for investors who want to know exactly how their money is being invested and to assess the risks associated with the investment. Moreover, many quant funds report their performance regularly, providing investors with clear insights into their investments' performance and composition.

## 5. Lower fees
Quant funds typically have lower fees than traditional funds. This is because using algorithms and automation reduces the need for expensive human resources and research, which lowers the overall cost of managing the fund. These lower fees result in higher net returns for investors. Furthermore, quant funds are often passively managed, leading to cost savings over the long term.

![Quant funds 3.jpg](/uploads/Quant_funds_3_abc7a600f5.jpg)

## Conclusion
In a nutshell, quant funds are worth considering in your portfolio due to their systematic and objective approach, consistent performance, diversification benefits, transparency, and lower fees. However, it's important to remember that no investment is without risk, and careful consideration of your investment objectives, risk tolerance, and financial situation before investing in any fund is a must.
Additionally, we must do our due diligence to find the best quant fund that aligns with their investment goals and risk tolerance. Thankfully, there are now sophisticated data visualization tools such as ETF Insider that allows us to see the composition and the possible impact of your desired quant fund on your overall portfolio, helping you to avoid fund overlaps and overexposure and ensure you are diversified for success.
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Quant funds are worth considering in your portfolio due to their systematic approach, consistent performance, diversification benefits, and lower fees.

Reasons Why Quant Funds in Your Portfolio

**To say 2022 was challenging for the global stock market is an understatement. In just one year, the global economy faced some of the most devastating events in recent history: a global monetary tightening, widespread recession fears, international trade hindrances, and of course, the consequential Ukraine-Russia War. As a result, global equities performed their worst year since the financial crisis in 2008 - a testament to the year's dire economic situation.
**
In light of this, let's underline three ETFs that performed the worst in 2022 while simultaneously highlighting the three ETF outliers that glowed during this turmoil.

![Best and Worst 2.jpg](/uploads/Best_and_Worst_2_26d63006d3.jpg)

## The Top 3 Losers:
### 1) Sector: Shipping
The dry bulk shipping market experienced a significant downturn due to lockdowns in China and concerns about the country's property market. As a result, the Breakwave Dry Bulk Shipping ETF ([BDRY](https://etfinsider.co/analysis-quote/bdry)) has seen a decline of 68.95%. This ETF is the only one focused exclusively on the dry bulk shipping market, and it achieves this focus through a portfolio of short-term freight futures contracts on dry bulk indices.
### 2) Sector: Technology
The recent increase in interest rates has negatively impacted the technology sector. This is because the sector often relies on access to affordable borrowing in order to achieve strong growth, and the value of technology companies is often closely tied to their expected future earnings. As a result, the Viridi Bitcoin Miners ETF ([RIGZ](https://etfinsider.co/analysis-quote/rigz)) has experienced a drop of 87.21% this year. This actively managed ETF focuses on the securities of companies involved in Bitcoin mining, and it holds a basket of 21 stocks.
### 3) Sector: Cannabis
Cannabis, a high-growth sector, has suffered as a result of a general market sell-off. The AdvisorShares Pure US Cannabis ETF ([MSOS](https://etfinsider.co/analysis-quote/msos)) has experienced a significant decline of 73.04% in value this year due in part to the sell-off in high-growth sectors such as cannabis. This actively managed ETF is the first of its kind to offer dedicated cannabis exposure and to focus exclusively on U.S. companies, including multi-state operators. 
## The Top 3 Winners:
### 1) Sector: Hedge Against Interest Rate
Concerns about rising interest rates have had a positive impact on the Simplify Interest Rate Hedge ETF ([PFIX](https://etfinsider.co/analysis-quote/pfix)), as it registered an astounding YTD return of 86.97%. This is particularly relevant given the Federal Reserve's recent monetary policy, which has included several interest rate hikes, bringing the benchmark rate to its highest since 2008. 
### 2) Sector: Energy
The energy sector has seen a strong performance this year due to rising oil prices, which have been driven by tighter supply and improving demand fundamentals. The overall demand for fuel has returned to pre-pandemic levels. The VanEck Vectors Oil Services ETF ([OIH](https://etfinsider.co/analysis-quote/oih)) has risen by 63.61% YTD. This ETF tracks the MVIS U.S. Listed Oil Services 25 Index, which provides exposure to companies that provide oil services to the upstream oil sector, including oil equipment, oil services, and oil drilling. 
### 3) Sector: Turkey
Lastly, Turkish stocks have had a strong performance this year, despite the challenges facing the country, including high inflation and a declining currency. This success can be attributed to differences in monetary policy, as the central bank has lowered interest rates to support consumer spending while other countries have pursued rate hikes. As a result, the iShares MSCI Turkey ETF ([TUR](https://etfinsider.co/analysis-quote/tur)) has registered a YTD gain of 91.61%.
You may try and check your portfolio and holdings for free with ETF-Insider using [this link](https://bit.ly/3gAz2Am)
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Let's underline three ETFs that performed the worst in 2022 while simultaneously highlighting the three ETF outliers that glowed during this turmoil.

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