2 new charts - Fund performance attribution

How does each holding contribute to overall performance?

The aim of investing in a fund or ETF is to not have all your eggs in one basket. Popular ETFs like SPY or VOO were created to invest the 500 largest US companies, while others like VWRL or INRG invest in the global economy or in clean energy respectively. With 2022 being a rollercoaster of a year, how did these popular funds do and were there any outliers?

The S&P 500 contains the 500 largest US companies, and VOO is one of the most popular ETFs available that tracks it. Here we look at how each sector performed individually, as well as how they contributed to the overall performance of the fund. You can see that despite the Energy sector’s high-flying performance, it wasn’t enough to bring up the overall fund performance by any significant amount as almost all the other sectors underperformed by a large amount - resulting in an overall performance of -18.13%.

Pershing Square is run by famous investor Bill Ackman, and only tracks a handful of stocks as opposed to the S&P 500. However, just like the previous chart the good performance of one holding has little to no effect on overall performance, with the fund ending 2022 down by -12.24%. A sizeable proportion of the fund is also held in cash unlike VOO which only contains equity.

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See you on Friday with more charts on sports!

Created by Miguel

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