MutualFunds.com provides weekly information about any material impact on the mutual funds industry due to major economic and corporate events around the world. In addition, performance statistics on the top funds and fund categories are also provided.
- U.S. markets were positive for the week, with the Dow Jones Industrial Average closing at 20,663.
- The best-performing fund so far for 2017 is Wasatch Emerging India Institutional (WIINX).
- India Equities continues to be the best-performing year-to-date and rolling one-month mutual fund subcategory.
- Make sure to check out the previous edition of the Weekly Roundup to keep track of changing trends.
U.S. Equities – U.S. equity markets were up this week but are still off the record highs hit earlier this year. The Dow Jones Industrial Average increased by 0.32% to 20,663 and is up 4.56% year-to-date. The S&P 500 increased 0.80% for the week and settled at 2,363. Among the major U.S. indices, the NASDAQ Composite Index was the best performer, up 1.42% for the week to 5,912. After last week’s sell off, investors bought back into the stock market.
The energy sector was this week’s top-performing area, with a positive 2.21% return. With oil seeing a big increase this week, energy stocks benefited. However, the sector is still the worst-performing area on a year-to-date basis, down 6.68%.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International equities did not perform as well as the U.S. equity markets. The MSCI Developed Index had a slight increase of 0.06%, while the MSCI Emerging Index saw a decline of 1.05% for the week. Japan’s NIKKEI 225 continues to fall for the third week in a row, down 1.83%, and closed at 18,909.
Commodities – The commodity sector was the best-performing area, with oil increasing $2.63 per barrel and closing back above the $50 mark to $50.60 per barrel. The price of gold had a moderate decline of $1 per troy ounce to $1,247, while copper increased by $0.02 per pound to close at $2.65.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields declined slightly across all maturities except in the longer term. The two-year Treasury yield decreased by 1 bps to 1.25%. The 10-year Treasury saw a modest decline of 2 bps to 2.39%. The 30-year Treasury remained flat for the week and continues to yield 3.01%.
Municipal Bonds – Municipal yields declined across all maturities, with the two-year AAA-rated bonds decreasing 1 bps to 1.03%. The 10-year AAA-rated municipal decreased by 4 bps while the 30-year decreased by 3 bps. For the second week in a row, municipal bond funds showed inflows of $124 million.
Credit spreads remained relatively unchanged, with the largest spread still remaining between the five-year Treasury and the AAA-rated municipal at 34 bps.
You can also read essential tax tips for mutual funds so that you are aware of key strategies to limit your tax burden.
Performance Snapshot: Top Fund Category
The following table provides a list of the top-performing mutual fund subcategories for the previous week within the broader categories of the industry. In each of these subcategories, we have listed the top mutual funds based on the 1-month return generated as of March 31, 2017.
|Category||Top Subcategory||1-Month Subcategory Return (%)||Top Subcategory Performer||Ticker||1-Month Fund Return (%)||Performance Rationale|
|U.S. Equity Fund||Large Cap Growth||1.04%||Baron Fifth Avenue Growth Instl||BFTIX||3.98%||The fund's largest holding is Amazon, Inc. (AMZN), which is up over 18% YTD.|
|International Equity||India Equities||6.60%||Wasatch Emerging India Investor||WAINX||7.92%||The fund invests in India-based companies. The BSE SENSEX Index is up over 11% YTD.|
|Commodities||Broad Basket||-2.91%||Catalyst Hedged Commodity Strategy I||CFHIX||-0.36%||Fund invests in commodity options and hedging strategies. With oil falling over 9% YTD, this fund is invested in short-term bonds.|
|Taxable Bonds||Emerging Markets Bonds||0.68%||Barings Emerg Mkts Dbt Blnded Ttl Ret I||BXEIX||2.67%||Fund invests in bonds of emerging market countries, which have been less affected by interest rate hikes in the U.S.|
|Municipal Bonds||High Yield Municipal Bonds||0.53%||Oppenheimer Rochester® AMT-Free Munis Y||OMFYX||3.63%||With bond yields continuing to fall this week, bond mutual funds increased in value.|
Performance Snapshot: Top Fund
This fund is heavily invested in gold, which is up over 5% year-to-date.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis, as of March 31, 2017. Only those funds that are rated 5 stars by Morningstar and that generated YTD return greater than that achieved by the S&P 500 are included.
|Top-Performing Fund||Ticker||Category||YTD Return (%)||Net Expense Ratio (%)||% of Assets in Top 10 Holdings||Net Assets $ (Millions)||Top Sector Invested|
|Wasatch Emerging India Institutional||WIINX||India Equities||22.92%||2.00%||32.90%||$104||Financial Services|
|Oppenheimer Global Opportunities I||OGIIX||World Stock||18.58%||0.75%||31.50%||$4,080||Technology|
|T. Rowe Price Global Technology||PRGTX||Global Equities||17.62%||0.90%||61.20%||$3,800||Technology|
|Matthews India Instl||MIDNX||India Equities||17.46%||0.90%||44.60%||$1,770||Financial Services|
|Morgan Stanley Inst International Opp I||MIOIX||Foreign Large Cap Growth Equities||16.41%||1.34%||49.30%||$85||Technology|
We provide this report on a weekly basis. To stay up to date with mutual fund market events, return to our News section.