Bond ETFs were among the worst performing vehicles in Selftrade's ETF Select 100 list during September while energy ETFs dominated the charts amid rising Brent crude prices.
The poor performance of bond products was largely driven by the Federal Reserve's announcement of plans to begin reducing its $4.5trn balance sheet in October.
According to data from Selftrade and ITI Group, the iShares $ Treasury Bond 1-3yr UCITS ETF was the worst performing bond ETFs during the month, declining 5.6%, while the iShares $ Short Duration Corporate Bond and iShares $ Treasury Bond 20+yr UCITS ETFs fell 5.5% and 5.3% respectively.
This month, the Fed will stop reinvesting the proceeds of maturing debt accumulated through a variety of its QE programmes.
However, the biggest drop was experienced by the SPDR S&P Euro Dividend Aristocrats UCITS ETF, which fell 5.9% on the back of continued strength from the euro affecting exporting firms in the eurozone.
The ETF Select 100, which launched in July by Selftrade in collaboration with ITI Group, is a list of the best-in-class ETFs available in the UK market taking into account the cost of ownership, assets under management (AUM) and average daily trading volumes to select the top 100 ETFs in each asset class.
Simon Glover, chairman of ITI Group, said: "Equity ETFs had a quiet month, while bonds fill the list of worst performers.
"The suggestion from the Fed mid-month that they would start to unwind their huge holdings of treasury bonds and that they would also raise interest rates in 2018 pushed rates higher and bonds lower."
Meanwhile, Energy ETFs were among the list's best performers after Brent Crude climbed to $59 a barrel, its highest level since July 2015, as President Recep Erdogan threatened to cut off a Kurdish pipeline and OPEC and non-OPEC member states said the market was rebalancing amid strong global demand.
The Source Energy S&P US Select Sector UCITS ETF captured this rise in prices best, climbing 3.2% in September, while the iShares S&P 500 Energy Sector and db x-trackers Stoxx Europe 600 Basic Resources UCITS ETFs rose 2.9% and 0.7% respectively.
Those leaving the ETF Select 100 list were the iShares S&P 500 Energy Sector UCITS ETF, as the average relative spread was over the threshold, while the Source Consumer Discretionary S&P US Select Sector UCITS ETF was under the average number of required daily trades.
Glover said: "Eight new ETFs have met the ETF Select 100 thresholds and are entering the list for October, five of which have a US focus. Five ETFs have left, though three of these leavers were as a result of a merger or streamlining of UBS's ETF product line-up."
Commenting on the ETF Select 100, Mark Taylor, chief customer officer for Selftrade from Equiniti, said: "We are delighted to see that our customers have found the ETF selection tool useful and we have been monitoring a strong connection between what is being researched and subsequent investments being made.
"We are also seeing our customers start to research more or less correlated ETFs, particularly in the infrastructure sectors, which indicates that they are seeking to diversify risk within their portfolios and have identified the benefits of using ETFs for this purpose."
Effective as of 1 November
In this week's inflation print, the UK hit a highpoint. According to the Office for National Statistics, the UK's CPI rate hit 3% - a level not seen in more than 5 years. And it's not just the UK - globally inflation has been creeping up.
Five new entrants to the table
Asset management taskforce set up