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 have a stellar week of gains, with the Dow Jones Industrial Average increasing 0.59% this week to a new all-time high of 21,206.
- The best-performing fund so far for 2017 is the T. Rowe Price Global Technology (PRGTX).
- Japan Stock is the best-performing 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 increased this week to new highs. The Dow Jones Industrial Average increased by 0.59% for the week and is up 7.31% year-to-date. The DJIA closed at a record high of 21,206 for the week. The S&P 500 increased 0.99% for the week, closing at 2,439, which is also a new all-time high. Among the major indices, the NASDAQ Composite Index was this week’s best performer, up 1.62% for the week to a new high of 6,306. The NASDAQ is still the best-performing index and is up 17.14%. Even though jobs data was lower than anticipated on Friday, investors continue to keep buying into the U.S. equity markets.
The telecommunications sector was this week’s top-performing area, up 2.22%, although it is the second-worst performer on a year-to-date basis, being down 7.50%. This is led by wireless phone companies like AT&T (T) and Verizon Communications (VZ), which are up over 1.97% and 2.41% for the week, respectively.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International equities were a mixed bag this week. The MSCI Developed Index had an increase of 1.74%, while the MSCI Emerging Index had a slight decrease of 0.12% for the week. Japan’s NIKKEI 225 had its second week in a row of big gains, up 1.84% to close at 20,177.
Commodities – The commodity sector was mostly down, with the exception of gold. Crude oil decreased $1.24 per barrel and closed at $47.66 per barrel. The price of gold increased for the third week in a row, up $21 per troy ounce to close at $1,277. Copper, on the other hand, was down $0.02 for the week to close at $2.57.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields all declined this week besides the 2-year. The 2-year Treasury remained flat while the 10-year Treasury yield dropped 9 bps. The 30-year Treasury yield had the largest decline this week, down 10 bps to 2.81%.
Municipal Bonds – Municipals declined across all maturities. The 2-year AAA-rated bonds dropped 3 bps, the 10-year AAA-rated bonds dropped 9 bps, and the 30-year AAA-rated bonds dropped 11 bps. Municipal bond funds broke seven weeks of net positive fund flow with $116 million of outflows. The largest credit spread among Treasury and muni bonds widened to 50 bps for the 5-year securities.
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 June 2, 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||3.36%||Zevenbergen Genea Institutional||ZVGIX||9.51%||The fund's largest holding is Amazon, Inc. (AMZN), which is up over 34% on a YTD basis.|
|International Equity||Japan Stock||5.22%||Matthews Japan Instl||MIJFX||7.36%||The fund invests in Japanese companies and the Nikkei 225 is up 3.76% on a month-to-date basis.|
|Commodities||Broad Basket||-1.53%||Catalyst Hedged Commodity Strategy A||CFHAX||0.46%||With commodities down for the year, this fund was protected by being invested in 39% cash and 26% bonds as a hedge.|
|Taxable Bonds||Government Bonds||3.13%||Vanguard Extended Duration Trs Idx Instl||VEDTX||5.09%||With bond yields falling across the board this week, longer maturity Treasuries saw the biggest gain.|
|Municipal Bonds||Single- State Municipal Bonds||1.95%||Nuveen CA High Yield Municipal Bond I||NCHRX||3.13%||With muni yields declining, investors flocked around high yield California muni bonds.|
Performance Snapshot: Top Fund
With over 68% in technology, the fund is this year’s best-performing fund. Its largest holding is in Salesforce.com (CRM), which is up more than 32% YTD.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis as of June 2, 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||Net Assets $ (Millions)||Top Sector Invested|
|T. Rowe Price Global Technology||PRGTX||Global Equities||32.58%||0.90%||54.60%||$4,370||Technology|
|Wasatch Emerging India Institutional||WIINX||India Equities||32.33%||2.00%||35.00%||$154||Financial Services|
|Transamerica Capital Growth I||TFOIX||Large-Cap Growth Equities||31.60%||0.94%||61.20%||$718||Technology|
|Morgan Stanley Inst International Opp I||MIOIX||Foreign Large-Cap Growth Equities||31.15%||1.34%||49.30%||$138||Technology|
|Morgan Stanley Inst Growth IS||MGRPX||Large-Cap Growth Equities||31.14%||0.54%||56.90%||$3,510||Technology|
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