SWM ETF fact sheets January 2022: weakness across the board, outlook poor

January was a weak month across the board for our sustainable ETF portfolios. We saw declines of between 2.44% (fixed-income) and 7.5% (growth), with crypto being hit particularly hard (-35%). Our ESG (sustainable) exposure includes a high weighting in technology and small- and mid-cap stocks, areas that have been particularly weak in recent weeks. We have addressed this by moving some of our US equity exposure into USMV, the iShares US Minimum Volatility ETF. Since mid-2021, there have been increasing signs that the long-running equity bull market is rolling over into a bear market.

These technical signals have worsened materially in 2022, and we will now look to move to underweight equities on any meaningful rally. Other asset classes do not look more attractive for 2022: fixed-income and precious metals are in negative trends, and property is neutral. Even liquid crypto has become less attractive, displaying a sharp increase in correlation with mainstream equity markets. 2022 may be a year when private-market / uncorrelated investments outperform.

Please follow this link to read Secure Wealth Management’s monthly ETF portfolio review for January 2022.