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- Both U.S. and international equities were all mostly down this week.
- The best-performing fund for 2018 on a year-to-date basis is Copley (COPLX).
- Europe Equities is the best-performing mutual funds subcategory based on 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.
U.S. Equities – U.S. equity markets were down this week, with the Dow Jones Industrial Average dropping by 0.62% to close at 24,311 and now down 1.65% on a year-to-date basis. The S&P 500 also fell 0.01% for the week to close at 2,670 and is down 0.14% year-to-date. The NASDAQ Composite decreased 0.37% to close at 7,120. The NASDAQ is still the best-performing index among major indices on a year-to-date basis and is up 3.13%.
The best-performing sector was utilities, up 2.81%. This sector consists of companies like NextEra Energy Inc (NYSE:NEE), which was up 1.97% for the week.
International Equities – The international markets were also down this week, with the exception of the Japanese Nikkei 225. The MSCI Developed Market Index was down 0.21% to close at 2,043. The MSCI Emerging Market Index fell 1.01% to close at 1,156. Meanwhile, Japan’s Nikkei 225 saw this week’s only increase, of 1.38%, to close at 22,468.
Commodities – The commodities markets were all down this week, with crude oil falling $0.28 per barrel to close at $68.10. The price of gold decreased by $16 per troy ounce to close at $1,320. Copper prices also decreased by $0.07 to close at $3.07.
Be sure to read important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields were mixed this week, with the 2-year Treasury increasing by 2 bps and now yielding 2.48%. The 10-year Treasury yield remained unchanged and yields 2.96%. The 30-year Treasury decreased by 3 bps and now yields 3.12%.
Municipal Bonds – Municipal yields were up this week, with the 2-year AAA-rated bonds increasing by 6 bps to yield 1.87%. The 10-year AAA-rated bonds saw an increase of 7 bps, while the 30-year AAA-rated bonds gained 10 bps and yield 3.16%. Municipal bond funds saw inflows of $242 million this week, a reversal of three weeks of outflows in a row. The largest credit spread for the two-year securities decreased to 61 bps for the week.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
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 27, 2018.
|Category||Top Subcategory||1-Month Subcategory Return (%)||Top Subcategory Performer||Ticker||1-Month Fund Return (%)||Performance Rationale|
|U.S. Equity Fund||Small Cap Value Equities||3.29%||CM Advisors Small Cap Value||CMOVX||10.96%||The fund's largest holding is Dmc Global Inc (NASDAQ:BOOM), which is up over 33% for the last week.|
|International Equity||Europe Equities||3.35%||Franklin Mutual European R6||FMEUX||6.43%||The fund's largest holding is Royal Philips NV ADR (PHG) which is up over 5.32% for the week.|
|Commodities||Broad Basket||2.75%||Rydex Commodities Strategy A||RYMEX||4.71%||With commodities mostly being down, this fund was protected by being in over 78% cash.|
|Taxable Bonds||High Yield Bonds||0.50%||Fairholme Focused Income||FOCIX||4.33%||High-yield bonds saw this week's largest gains in the middle of mixed reactions for bond yields across different maturities.|
|Municipal Bonds||High Yield Municipal Bonds||0.14%||Oppenheimer Rochester® High Yld Muni Y||ORNYX||1.50%||High-yield bond funds saw the largest increase in price.|
Performance Snapshot: Top Fund
One of the fund’s largest holdings is NextEra Energy Inc (NYSE:NEE), which is up 4.97% on a year-to-date basis.
The following table provides the top-performing mutual funds on a YTD basis as of April 27, 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|
|Copley||COPLX||Large Cap Value Equities||12.95%||7.07%||67.30%||$93||Utilities|
|Leland Thomson Reuters Vntr Cptl Idx I||LDVIX||Large Blend Equities||12.84%||1.74%||21.20%||$41||Technology|
|Virtus KAR Small-Cap Growth I||PXSGX||Small Cap Growth Equities||11.28%||1.25%||49.50%||$2,520||Technology|
|ClearBridge Select IS||LCSSX||Mid Cap Growth Equities||11.19%||2.02%||28.80%||$45||Technology|
|Fidelity® Select Medical Tech and Devcs||FSMEX||Health & Biotech Equities||10.43%||0.76%||59.30%||$4,070||Healthcare|
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