EOFY: The four sectors that delivered positive full-year returns
Just four, representing a quarter of the ASX 200 sectors, saw positive returns during the 2019/20 financial year as markets were hit by the market downturn in early 2020.
While markets performed well during the first half of the financial year, the impact of the COVID-19 pandemic caused a hit to markets in March 2020 and led to increased turbulence and volatility for the remainder of the financial year.
The ASX 200 lost 8% during the financial year after being hit with losses of 36% from its February peak to 23 March as a result of the crash, although it had since rebounded, according to FE Analytics data.
Healthcare was the best-performing sector with returns of 26.4% followed by technology at 16.6% and consumer staples at 13%. Consumer discretionary also managed to report a smaller positive return of 3.2%.
The worst-performing sectors were energy which lost 29.3% and financials which lost 22.2%. The pain for energy stocks was caused by the lack of travel and lack of manufacturing as well as a falling oil price as a result of the social distancing and border closures necessitated by COVID-19.
AUTHOR
Laura Dew
Recommended for you
Fidelity Australia managing director Lawrence Hanson has announced the firm’s intention to launch several of its strategies as active ETFs.
Online investment adviser and fund manager Stockspot has introduced Stockspot Super, Australia’s first 'ETF only' superannuation product. superannuation product.
Betashares has highlighted which ETFs saw the highest volume of inflows and outflows in April, while the overall ETF industry breaks its six-month growth streak.
ETF provider Global X has launched a Gold Bullion ETF which will complement the firm’s existing physical gold vehicle.
