- The Dow Jones Industrial Average (DJIA) was the only major U.S. equity index that ended this week in positive territory, increasing 0.31% to a new all-time high of 21,272.
- The best-performing fund so far for 2017 is the Wasatch Emerging India Institutional (WIINX).
- China Equities 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.
Market Wrap-Up
The financials sector was this week’s top-performing area, up 3.60%, and up 4.92% on a year-to-date basis. This was led by top banks like JPMorgan (JPM) and Wells Fargo Co. (WFC), which are both up 5.05% and 4.58% for the week, respectively.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – Like the U.S. markets, international equities were also a mixed bag this week. The MSCI Developed Index had a decrease of 1.16%, while the MSCI Emerging Index rose 0.36% for the week. Japan’s NIKKEI 225 had a decline after two weeks of big gains and is down 0.81% to close at 20,013.
Commodities – The commodity sector was also down, with the exception of copper. Crude oil decreased $1.83 per barrel and closed at $45.83 per barrel. The price of gold decreased $8 per troy ounce to close at $1,269. Copper, on the other hand, was up $0.08 for the week 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 all gained this week, a reversal from last week’s drop. The 2-year and 10-year Treasuries both increased 4 bps, while the 30-year Treasury yield increased 5 bps to 2.86%.
Municipal Bonds – Municipals remained relatively stable this week. The 2-year AAA-rated bonds increased 1 bps; the 10-year AAA-rated bonds remained flat; and the 30-year AAA-rated bonds increased 1 bps. Municipal bond funds returned to positive this week, with $871 million of inflows. The largest credit spread among Treasury and muni bonds widened to 55 bps for the 5-year securities.
Performance Snapshot: Top Fund Category
| Category | Top Subcategory | 1-Month Subcategory Return (%) | Top Subcategory Performer | Ticker | 1-Month Fund Return (%) | Performance Rationale |
|---|---|---|---|---|---|---|
| U.S. Equity Fund | Large Cap Growth | 3.04% | Zevenbergen Genea Institutional | ZVGIX | 10.79% | The fund's largest holding is Amazon, Inc. (AMZN), which is up over 31% on a YTD basis. |
| International Equity | China Equities | 7.43% | Neuberger Berman Greater China Eq Instl | NCEIX | 11.64% | The fund invests in Chinese companies, with its largest holding in Alibaba Group Holdings Ltd (BABA,) which is up over 58% YTD. |
| Commodities | Broad Basket | -0.31% | Direxion Indexed Cmdty Strategy A | DXCTX | 2.69% | This fund can go long in any commodity sector or remain flat (in cash) as a hedge. With oil down, this fund was heavy in cash but long in gold, which has increased. |
| Taxable Bonds | Government Bonds | 3.27% | Vanguard Extended Duration Trs Idx Instl | VEDTX | 4.87% | Bonds with longer maturities are increasing more in value than shorter-term bonds. |
| Municipal Bonds | Single State Municipal Bonds | 1.82% | Nuveen CA High Yield Municipal Bond C2 | NCHCX | 2.82% | With muni yields remaining relatively flat, California muni bond funds showed slight gains. |
Performance Snapshot: Top Fund
The fund’s largest holding is in Housing Development Finance Corp Ltd (NSE:HDFC), which is up over 30% on a year-to-date basis.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis as of June 9, 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 |
|---|---|---|---|---|---|---|---|
| Wasatch Emerging India Institutional | WIINX | India Equities | 34.22% | 2.00% | 35.00% | $154 | Financial Services |
| T. Rowe Price Global Technology | PRGTX | Global Equities | 33.59% | 0.90% | 54.60% | $4,370 | Technology |
| Transamerica Capital Growth I | TFOIX | Large Cap Growth Equities | 32.23% | 0.94% | 61.20% | $718 | Technology |
| Neuberger Berman Greater China Eq Instl | NCEIX | China Equities | 31.88% | 1.76% | 51.40% | $93 | Financial Services |
| Morgan Stanley Inst Growth IS | MGRPX | Large Cap Growth Equities | 31.14% | 0.54% | 56.90% | $3,510 | Technology |