The S&P/ASX 200 Index (ASX: XJO) put up another lousy performance in September. It slid by 7.3% across the month to finish at 6,474 points.

But this single-digit fall stacks up rather favourably to some ASX exchange-traded funds (ETFs) that turned in disappointing performances.

Using data from Google Finance, let's check out the worst-performing ETFs on the ASX in September. 

Global X Hydrogen ETF (ASX: HGEN)

The Global X Hydrogen ETF found itself at the back of the pack, drudging up an 18.4% loss in September.

The HGEN ETF aims to provide investors with exposure to companies that stand to benefit from the advancement of the global hydrogen industry. 

Some of its top holdings include Plug Power (NASDAQ: PLUG), a provider of turnkey hydrogen and fuel cell solutions, and Bloom Energy (NYSE: BE), a manufacturer and marketer of solid oxide fuel cells.

The HGEN ETF was formerly managed by ETF Securities before the ETF provider was taken over by Global X.

HGEN was one of the ASX's best ETF performers in August. It climbed 8.2% across the month as investors bid up hydrogen stocks in anticipation of the Inflation Reduction Act being passed in the US.

It appears momentum ran out of steam in September. Sentiment towards these hydrogen companies turned sour, sending the HGEN ETF down with it.

VanEck FTSE International Property (Hedged) ETF (ASX: REIT)

The VanEck REIT ETF took out unwanted second place, crumbling 14.5% in September to finish the month at $14.98.

The REIT ETF aims to provide investors with exposure to a portfolio of international property securities from developed markets, excluding Australia. 

The REIT ETF comprises around 340 companies. Some of the top holdings include Prologis Inc (NYSE: PLD), a global leader in logistics real estate, Equinix Inc (NASDAQ: EQIX), a data centre company, and Public Storage (NYSE: PSA), the largest self-storage company in the US.

Real estate investment trusts (REITs) are thought to be rather resilient in an inflationary environment as property prices and rental income keep up with inflation.

However, REITs have been battered and bruised this year over concerns about rising interest rates. In a rising interest rate environment, the high yields on offer from REITs become less attractive compared to lower-risk, fixed income options.

What's more, REITs are mainly funded through debt, which becomes more expensive as interest rates head north.

SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF)

ASX REITs weren't immune to this selling pressure in September. As a result, the SLF ETF sat in third place with a 13.9% monthly fall.

The SLF ETF seeks to track the S&P/ASX 200 A-REIT Index (ASX: XPJ), which comprises the 24 REITs in the ASX 200 index. 

Nearly one-quarter of SLF's portfolio is weighted to Goodman Group (ASX: GMG). Other top holdings include Scentre Group (ASX: SCG), Dexus Property Group (ASX: DXS), Stockland Corporation Ltd (ASX: SGP), and Mirvac Group (ASX: MGR).

The SLF ETF has tumbled around 33% in the year to date as ASX REITs have been sold off on the back of rising interest rates.

The post These were the worst-performing ASX ETFs in September appeared first on The Motley Fool Australia.

Exchange traded funds (ETFs) are not really thought of as the most effective way to procure income from shares – that honour has traditionally gone to individual shares like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

However, I think that these days, ETFs can be an income investor's best friend. Having high-yield as well as high diversification all in one share is a more risk-averse strategy of chasing good returns, in my view.

So here are 2 exotic ASX ETFs that I think any income investor should at least consider for their portfolio today.

SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF)

This ETF follows the S&P/ASX 200 A-REIT Index (ASX: XPJ), which in turn tracks the biggest REITs (Real Estate Investment Trusts) on the market. REITs are companies that primarily own land and property assets, and pass on their rental incomes as dividends to their owners. This naturally makes REITs very desirable investments to own if you're an income-focused investor.

SLF tracks 20 ASX REITs, which include big names like Goodman Group (ASX: GMG), Scentre Group (ASX: SCG) and Stockland Corporation Ltd (ASX: SGP). It offers a tailing yield of 4.61% on current prices, which I think makes it a great option to consider, especially if your dividend portfolio is currently heavy on the big banks.

iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD)

The name really says it all on this one. IHD tracks a list of approximately 50 ASX dividend-paying companies that "offer high dividend yields while meeting diversification, stability and tradability requirements", according to iShares.

Amongst these 50 stocks, we have Wesfarmers Ltd (ASX: WES), Woodside Petroleum Ltd (ASX: WPL), AGL Energy Ltd (ASX: AGL) and Commonwealth Bank, so I think this ETF covers most bases on the diversification front. This ETF is basically an 'all-stars' team of the best dividend stocks, so it might be a good option for a core/backbone stock for your portfolio. IHD currently has a trailing yield of 6.45% on current prices.

Foolish takeaway

I think these 2 ETFs would play a lucrative role in any income-focused portfolio. Having a wide range of different assets is always a good way to go, and it's my belief that these 2 ETFs are an easy way to achieve this.

The post 2 exotic ETFs to buy for dividend income appeared first on The Motley Fool Australia.

Take Retail Food Group Limited (ASX: RFG) for example. It is a high dividend yield stock but shareholders have seen its share price drop 67% over the last year.

One way of addressing this issue might be to diversify through Exchange Traded Funds (ETFs) holding a number of high yield stocks. Here are three ETFs that you could look further into:

• Vanguard Australian Shares High Yield ETF (ASX: VHY). This fund holds 43 ASX listed stocks with an average dividend yield of 5.7%. Top holdings in the fund include blue chip stocks such as Telstra Corporation Ltd (ASX: TLS), Westpac Banking Corp (ASX: WBC) and Wesfarmers Ltd (ASX: WES). I like the Vangaurd funds because they tend to have lower management fees compared to similar products. This fund has a management fee of 0.25% per annum.
• SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF). This fund invests in real estate stocks such as Scentre Group (ASX: SCG), Goodman Group (ASX: GMG) and Stockland Corporation Ltd (ASX: SGP). It has a dividend yield of 4.99%. The fund provides a good avenue to diversify and gain exposure to the real estate industry.
• BETANASDAQ ETF UNITS (ASX: NDQ). This fund invests into large cap US stocks with technology being the dominant sector. Tech giants such as Apple, Microsoft, Amazon and Facebook are the the largest holdings within this fund. I like the overseas exposure that this fund provides and the additional growth potential in stocks such as Facebook. The downside however of this fund is that it has a lower distribution yield.

The post Here's a quick way to boost your income with these 3 ETFs appeared first on The Motley Fool Australia.

I won't get bogged down in an argument for or against it, you'll find that anywhere on the net. But the bottom line is, anything is possible.

3 ways to short sell Australian property

I recently covered the ins and outs of short selling, here. Basically, it is borrowing something in the hope of buying it back at a lower price later on. You make money if the asset (e.g. a share) falls. But short selling Australian shares are not the only way to make money from falling Australian house prices.

Here are three ways you could do it:

1. Buy put options. If your online broker allows you to, you could buy a put option on Australia's big bank shares, like Westpac Banking Corp (ASX: WBC) or National Australia Bank Ltd. (ASX: NAB). A put option makes money if a stock price falls below a pre-agreed price (called the strike price). Options have a limited life. For example, right now, you could buy a $29.07 put option on NAB shares, which would start profiting when the share price fell below that level. It would expire in December 2017 and cost you about $2.50 per contract, which is 103 shares.
2. Short sell property developer shares. Your broker may even allow you to short sell shares in a property developer, like Mirvac Group (ASX: MGR). It'll cost you a few percent, maybe, 10% per annum, to do it. But you could short sell one of Australia's biggest property developers quite easily. You could also short sell a real estate investment trust (REIT). Given this strategy may offer exposure to commercial property it is not a perfect play on falling house prices. The SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF) is an exchange-traded fund (ETF) that invests in a diverse basket of property funds. If Australian property was about to fall you could short sell units in the ETF like any other share.
3. Use CFDs. Contracts for difference (CFDs) are a contract between you and your broker. They can be highly levered (e.g. you can enter a position using just 5% of your own money), which maximises your losses or gains. You could sell a CFD on bank shares, the Australian dollar or an index. However, this is an extremely high risk way to invest (read 'gamble').

Foolish Takeaway

Australian property appears priced to perfection, in my opinion. Of course, high property prices are concentrated in Sydney and Melbourne, but so to are the activities of the banks, developers and REITs that finance projects in and around these cities.

Shorting is a risky business and can require a lot of capital, a high risk tolerance, timing and skill. Personally, I do not think any of these three options is a bona fide way to make money over time and should be used sparingly by experts.

The post 3 ways to short Australian property appeared first on The Motley Fool Australia.

Are QBE Insurance Group (QBE) shares safe in 2017?

Unfortunately, as you can see in the chart above, QBE has done a poor job of insuring shareholders a decent return. Even with dividends, QBE Insurance shares have underperformed the market over the past five years. And going back 10 years from today, around the height of the global financial crisis, QBE Insurance shares were trading over $30 a piece. Now they are $12.44.

Of course, the market is forward-looking because if investing were as easy as looking at the history books librarians would make the best investors.

But insurance is not an easy business and decisions now and in the past can plague a company for many years, as they have done in QBE's case.

Basically, insurance businesses make money two ways:

1. Assessing risk – they have 'actuaries' who use statistical techniques to determine the likelihood of events occurring and weigh them against variables like the sum insured to arrive at a premium. Needless to say, pricing your premium is not always easy. Sure, some actuaries are wicked smart and paid the big bucks, and regulations and reinsurance exist to help company's deliver on their promises. But pricing premiums is not an easy way to make money.
2. Investing the 'float' – the premiums you pay today are put aside in either a rainy day fund for that period or put in an investment portfolio to grow over time. Think of this as a superannuation account or personal investing portfolio on steroids. Given the regulations and usual complexities of investing, it is not as easy as you may think to make money from these assets. 

The point here is that insurance is tough. Look at the chart above, does it seem like each and every year has its own sets of triumphs and tribulations for QBE? To me it does.

Foolish Takeaway

Long-term investors can make huge dollars investing in insurance businesses, just look at Warren Buffett's Berkshire Hathaway (GEICO) in the U.S. or Markel Corporation. Given the complexity of its businesses and legacy issues, I don't believe QBE Insurance is in the same league.

Sure, QBE has undergone a simplification process and arguably set itself up for a brighter future. But, as with all insurance stocks, it also makes sense to wait for a major problem with both the premium side of the business and the investing returns before buying in — that's when shares will be cheapest.

The post Are QBE Insurance Group Ltd (QBE) shares safe in 2017? appeared first on The Motley Fool Australia.