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 all had big gains, with the Dow Jones Industrial Average closing at 20,941.
- The best-performing fund so far for 2017 is Wasatch Emerging India Institutional (WIINX).
- India Equities continued 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 showed big gains this week and had one of the best performances of 2017. The Dow Jones Industrial Average increased by 1.91% to 20,941 and is up 5.96% year-to-date. The S&P 500 increased 1.51% for the week, closing at 2,384. The NASDAQ Composite Index was this week’s best-performing index, up 2.32% for the week to 6,048. For the second week in a row, the U.S. equity markets began an upward trend, with the Dow Jones inching toward the 21,000 mark again.
The information technology sector was this week’s top-performing area with a 2.63% return. The sector is up 15.41% on a year-to-date basis and is the best-performing sector. This is led by companies like Apple Inc. (AAPL) and Alphabet Inc. (GOOG), which are both up over 26% and 17%, respectively, on a YTD basis.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International equities followed suit to the U.S. equity markets and ended in the positive for the week. The MSCI Developed Index had an increase of 3.12%, while the MSCI Emerging Index gained 1.74% for the week. Japan’s NIKKEI 225 continued its second week of gains, up 3.09% and closing at 19,197.
Commodities – The commodity sector showed declines for the most part, with crude oil falling $0.29 per barrel and closing at $49.33 per barrel. The price of gold also declined $21 per troy ounce to close at $1,266. Copper had the only increase, up $0.07 per pound to close at $2.61.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields showed little movement, with the two-year Treasury yield increased by 1 bps to 1.26%. The 10-year Treasury saw a decrease of 3 bps to 2.28%, while the 30-year Treasury remained flat at 2.95%.
Municipal Bonds – Municipal yields gained across the board for all maturities. The two-year AAA-rated bonds increased 3 bps to 1.01%. The 10-year AAA-rated municipal increased by 10 bps, while the 30-year increased by 12 bps. For the third week in a row, muni bond funds showed an inflow, registering $217 million last week.
Credit spreads decreased this week, with the largest spread between the five-year Treasury and the AAA-rated municipal decreasing 7 bps to 36 bps. The trend for longer-term bonds reversed this week, with the 30-year AAA-rated municipal bonds now yielding 7 bps more compared to its 30-year Treasury counterpart.
You can also read about essential tax tips for mutual funds so 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 one-month return generated as of April 28, 2017.
|Category||Top Subcategory||1-Month Subcategory Return (%)||Top Subcategory Performer||Ticker||MTD Fund Return (%)||Performance Rationale|
U.S. Equity Fund
|Small Cap Growth||2.89%||Jacob Micro Cap Growth Investor||JMCGX||7.35%||The fund's largest holding is USA Technologies, Inc (USAT), which is up over 15% on a YTD basis.|
|India Equities||5.27%||Wasatch Emerging India Institutional||WIINX||8.49%||The fund invests in India-based companies. The BSE SENSEX Index is up over 12% YTD.|
|Broad Basket||-1.10%||TCW Enhanced Commodity Strategy I||TGGWX||-0.06%||With commodities falling this week, this fund was protected by being invested in 49% cash and the rest in bonds as a hedge.|
|Government Bonds||1.67%||DoubleLine Long Duration Total Ret Bd I||DBLDX||2.23%||WIth bond yields falling, the value of this bond fund increased in value.|
|High Yield Municipal Bonds||0.81%||PIMCO High Yield Municipal Bond I||PHMIX||1.65%||With yields dropping this week, high-yield bonds were the best-performing segment within the broad municipal bond sector.|
Performance Snapshot: Top Fund
This fund’s largest holding is in MakeMyTrip Limited (MMYT), which is up more than 81% YTD.
Top Five Performers
The following table provides the top-performing mutual funds on a YTD basis as of April 28, 2017. Only those funds that are rated five stars by Morningstar and that generated YTD returns greater than equal to 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||Total Assets $ (Millions)||Top Sector Invested|
Wasatch Emerging India Institutional
|WIINX||India Equities||31.56%||2.00%||32.9%||$ 123||Financial Services|
T. Rowe Price Global Technology
|PRGTX||Global Equities||22.77%||0.90%||61.2%||$ 3,800||Technology|
Morgan Stanley Inst International Opp I
|MIOIX||Foreign Large Cap Growth Equities||21.97%||1.34%||49.3%||$ 101||Technology|
Morgan Stanley Inst Global Opp I
|MGGIX||Global Equities||20.79%||1.07%||53.5%||$ 828||Technology|
Oppenheimer Global Opportunities I
|OGIIX||Global Equities||20.45%||0.75%||32.8%||$ 4,500||Technology|
We provide this report on a weekly basis. To stay up to date with mutual fund market events, return to our News section.