- U.S. equities were down for the last week of 2017.
- The best-performing fund for 2018 on a year-to-date basis is the Leland Thomson Reuters Venture Capital Index Fund (LDVAX).
- Latin American Equities is the best-performing mutual funds subcategory based on the rolling-month returns.
Make sure to check out the previous edition of the Weekly Roundup to keep track of changing trends in the mutual funds space.
Market Wrap-Up
The materials sector was this week’s top-performing sector, up 3.76%. This sector consists of companies like DowDuPont Inc. (NYSE:DWDP), which was up 5.53%% for the week.
International Equities – International markets were also up this week, with the MSCI Developed Market Index gaining 2.45%, to close at 2,101. The MSCI Emerging Index had an increase of 3.69%, to close at 1,201. Japan’s Nikkei 225 also gained this week by 4.08% and closed at 23,715.
Commodities – The commodity sector was up with the exception of copper. Crude oil increased by $1.60 per barrel to close at $61.44. The price of gold increased $26 per troy ounce to close at $1,320. Copper, however, declined and fell $0.08 to close at $3.23.
Be sure to read important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields all gained this week except for the 30-year Treasury. The 2-year Treasury gained 4 bps to yield 1.96%. The 10-year Treasury yield increased 1 bps, while the 30-year Treasury yield remained unchanged at 2.81%.
Municipal Bonds – Municipal yields all saw increases with the 2-year AAA-rated bonds, which had gained 1 bps and now yields 1.57%. The 10-year AAA-rated bonds saw an increase of 2 bps, while the 30-year AAA-rated bonds grew 3 bps to yield 2.65%. Municipal bond funds saw a decline of $243 million in assets under management. The largest credit spread for the five-year securities increased to 57 bps for the week.
Explore our Mutual Funds Education section to learn more about important mutual funds concepts.
Performance Snapshot: Top Fund Category
| Category | Top Subcategory | MTD Subcategory Return (%) | Top Subcategory Performer | Ticker | 1-Month Fund Return (%) | Performance Rationale |
|---|---|---|---|---|---|---|
| U.S. Equity Fund | Large Growth Equities | 5.61% | American Growth Fund Series Two E | AMREX | 35.68% | The fund's largest holding is Scotts Miracle-Gro Co (NYSE:SMG) which is up over 7% for the month. |
| International Equity | Latin America Stock | 8.62% | Deutsche Latin America Equity Instl | SLARX | 11.69% | The fund's largest holding is Vale SA (NYSE:VALE) which is up over 7%. |
| Commodities | Broad Basket | 3.75% | AQR Risk-Balanced Commodities Strategy I | ARCIX | 6.80% | The fund invests in several commodities that were all up this week. |
| Taxable Bonds | Emerging-Markets Taxable | 3.05% | Goldman Sachs Local Emerg Mkts Dbt Instl | GIMDX | 4.18% | Having been invested in longer-term bonds, this fund witnessed decent gains this week. |
| Municipal Bonds | High Yield Municipal Bonds | 0.42% | Oppenheimer Rochester® High Yld Muni A | ORNAX | 1.00% | WIth yields increasing this week, high yield bonds managed to gain |
Performance Snapshot: Top Fund
The fund’s largest holding is in MasterCard (NYSE:MA), which is up over 5% for 2018.
Top Five Performers
The following table provides the top-performing mutual funds on a YTD basis as of January 5, 2018. Only those funds that are rated five stars by Morningstar and that generated YTD returns greater than or equal to that achieved by the S&P 500 are included.
| Name | Ticker | Category | YTD % | Net Expense Ratio | % of Assets in Top 10 Holdings | Total Assets $ (Millions) | Top Sector Invested |
|---|---|---|---|---|---|---|---|
| Leland Thomson Reuters Vntr Cptl Idx A | LDVAX | Large Blend | 7.79% | 1.99% | 26.5% | $ 21 | Technology |
| T. Rowe Price Global Technology | PRGTX | Global Equities | 5.11% | 0.90% | 55.4% | $ 6,280 | Technology |
| Columbia Seligman Comms & Info Inst2 | SCMIX | Technology Equities | 5.08% | 0.96% | 47.1% | $ 5,930 | Technology |
| Prudential Jennison Global Opps Z | PRJZX | Global Equities | 4.85% | 1.02% | 43.3% | $ 625 | Consumer Cyclical |
| Columbia Global Technology Growth Inst2 | CTHRX | Technology Equities | 4.82% | 0.98% | 35.6% | $ 953 | Technology |