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. equities and international equities were all down again this week.
- The best-performing fund for 2018 on a year-to-date basis is Alger Small Cap Focus Z (AGOZX).
- Small Cap Growth 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 industry.
U.S. Equities – U.S. equity markets were all in the red for the second week in a row, with the Dow Jones Industrial Average falling by 1.26% to close at 24,271. The Dow is now down 1.81% on a year-to-date basis. The S&P 500 lost 1.33% for the week to close at 2,718 but is up 1.67% year-to-date. The NASDAQ Composite decreased 2.37% to close at 7,510. NASDAQ is still the best-performing index among major indices on a year-to-date basis and is up 8.79%.
The best-performing sector was utilities for the third week in a row, up 2.32% for the week. The sector also turned positive on a year-to-date basis, up 0.32%. This sector consists of companies like NextEra Energy Inc (NYSE:NEE), which was up 1.57% for the week.
International Equities – The international markets were also down this week, with the MSCI Developed Market Index falling 1.03% to close at 1,959. The MSCI Emerging Market Index fell 1.41% to close at 1,070. Finally, Japan’s Nikkei 225 saw a loss of 0.94% to close at 22,305.
Commodities – The commodities markets were down this week, with the exception of crude oil, which gained $5.57 per barrel to close at $74.15. The price of gold decreased by $16 per troy ounce to close at $1,251. Copper prices also saw a decrease of $0.06 and now trades at $2.97.
Be sure to read important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields were all down this week, with the 2-year Treasury decreasing by 1 bps to now yield 2.52%. The 10-year Treasury yield decreased 1 bps and now yields 2.86%. The 30-year Treasury decreased 3 bps to yield 2.99%.
Municipal Bonds – Municipal yields were also down this week, with the 2-year AAA-rated bonds decreasing by 1 bps to yield 1.65%. The 10-year AAA-rated bonds saw a decrease of 1 bps, while the 30-year AAA-rated bonds decreased by 2 bps, to now yield 3.00%. Municipal bond fund flows remained positive this week for the fourth week in a row, with inflows of $205 million. The largest credit spread for the two-year securities remained unchanged at 87 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 June 29, 2018.
|Category||Top Subcategory||1-Month Subcategory Return (%)||Top Subcategory Performer||Ticker||1-Month Fund Return (%)||Performance Rationale|
|U.S. Equity Fund||Small Cap Growth Equities||2.02%||Nysa||NYSAX||6.92%||The fund's largest holding is Ligand Pharmaceuticals Inc. (NASDAQ:LGND), which is up over 57% on a year-to-date basis.|
|International Equity||World Large Stock||0.14%||Morgan Stanley Inst Global Franchise I||MSFAX||4.07%||The fund's largest holding is Microsoft Corp. (NASDAQ:MSFT), which is up over 16% on a year-to-date basis.|
|Commodities||Broad Basket||-2.62%||Rydex Commodities Strategy A||RYMEX||2.04%||With commodities and bond prices falling this week, this fund was protected since it had over 89% in cash.|
|Taxable Bonds||Preferred Stock||0.67%||Orinda Income Opportunities I||OIOIX||2.67%||With yields all falling this week, preferred stocks saw large gains.|
|Municipal Bonds||High Yield Muni||0.42%||Oppenheimer Rochester Shrt Dur HY Muni Y||OPIYX||2.48%||High-yield bond funds saw the largest increase in price.|
Performance Snapshot: Top Fund
Alger Small Cap Focus Z (AGOZX)
One of the fund’s largest holdings is Veeva Systems Inc Class A (NYSE: VEEV), which is up over 41% on a year-to-date basis.
The following table provides the top-performing mutual funds on a YTD basis as of June 29, 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|
|Alger Small Cap Focus Z||AGOZX||Small Cap Growth Equities||24.81%||0.90%||31.90%||$1,140||Technology|
|Leland Thomson Reuters Vntr Cptl Idx I||LDVIX||Large Cap Growth Equities||24.59%||1.74%||29.20%||$60||Technology|
|Morgan Stanley Multi Cap Growth I||CPODX||Large Cap Growth Equities||21.98%||0.95%||54.00%||$637||Technology|
|ClearBridge Select IS||LCSSX||Mid Cap Growth Equities||21.94%||2.02%||23.70%||$98||Technology|
|Virtus KAR Small-Cap Growth I||PXSGX||Small Cap Growth Equities||20.73%||1.25%||49.10%||$3,670||Technology|
We provide this report on a weekly basis. To stay up to date with mutual fund market events, return to our News section.