ETFs delivered strong returns during the March quarter.
These funds outperformed the benchmark despite the ongoing geopolitical tensions.
ETFs were among the most popular investments this year.
The Australian share market traded on an uncertain note in the first three months of 2022 on account of geopolitical tensions, rising inflation and expectations of potential interest rate hikes. Stocks struggled even as the ASX 200 Index (ASX:XJO) ended up with gain of 0.7% for the quarter. However, there were a few exchange-traded funds (ETFs) which delivered strong returns to their shareholders amid the ongoing uncertainty.
On this note, let’s discuss three ASX-listed ETFs which were the best performers in the March quarter:
VanEck Gold Miners ETF (ASX:GDX)
VanEck Gold Miners ETF, formerly VanEck Vectors Gold Miners ETF, gives investors exposure to a diversified portfolio of companies involved in the gold mining industry. It invests in a portfolio of global gold miners including Newcrest Mining and Newmont Corp. The ETF delivered a return of over 17% in the March quarter.
BetaShares Australian Resources Sector ETF (ASX:QRE)
BetaShares Australian Resources Sector ETF invests in metals, mining, and energy stocks. The portfolio includes popular ASX-listed stocks such as BHP Group, Rio Tinto, Newcrest Mining, Woodside Petroleum, Nickel Mines and Liontown Resources. The ETF delivered a return of nearly 18% in the March quarter.
SPDR S&P/ASX 200 Resources Fund (ASX:OZR)
There are many similarities between SPDR S&P/ASX 200 Resources Fund and BetaShares Australian Resources Sector ETF. OZR also invests in metals, mining, and energy stocks. There are many similar companies in the portfolios of the two funds. SPDR S&P/ASX 200 Resources Fund delivered a return of nearly 18% in the March quarter.
ETFs provide exposure to several high potential shares via a single investment. They help investors build a diverse investment portfolio. The other major benefit with ETFs is that these come with lower expense ratios and fewer broker commissions when compared to stocks.
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