In October, most asset classes experienced setbacks amid increased market volatility:

Global equities faced significant headwinds, with the ACWX world stock index falling -4.65% on concerns over slowing economic growth and geopolitical tensions. U.S. stocks showed more resilience but still declined, with the S&P 500 slipping -0.89%.

Real estate also encountered challenges, with the IYR index dropping -3.49% as rising borrowing costs and economic uncertainty weighed on the sector. Speaking of those borrowing costs, Bonds, which typically provide stability during market turbulence, fell -2.46% as interest rates unexpectedly rose even as the US Fed remains in a cutting stance.

Hedge funds struggled to navigate the choppy market conditions, with the QAI index declining -0.59% as various strategies encountered difficulties. Commodities provided a bright spot, with the GSG index showing it’s first positive numbers in 4 months, gaining +1.43% on the back of supply constraints and geopolitical factors. Cash yields remained relatively stable at +0.38%.

Managed futures faced a challenging month behind sharp reversals in bonds and currencies (see our post on those Whipsaws here), with the index falling -3.17%.

Past performance is not indicative of future results.

Past performance is not indicative of future results.

Sources: Managed Futures = SocGen CTA Index,
Cash = US T-Bill 13 week coupon equivalent annual rate/12, with YTD the sum of each month’s value,
Bonds = Vanguard Total Bond Market ETF (NYSEARCA:BND),
Hedge Funds = IQ Hedge Multi-Strategy Tracker ETF (NYSEARCA:QAI)
Commodities = iShares S&P GSCI Commodity-Indexed Trust ETF (NYSEARCA:GSG);
Real Estate = iShares U.S. Real Estate ETF (NYSEARCA:IYR);
World Stocks = iShares MSCI ACWI ex-U.S. ETF (NASDAQ:ACWX);
US Stocks = SPDR S&P 500 ETF (NYSEARCA:SPY)

All ETF performance data from Y Charts