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 up this week.
- The best-performing fund for 2018 on a year-to-date basis is Leland Thomson Reuters Vntr Cptl Idx I (LDVIX).
- Government bonds 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 up for the second week in a row, with the Dow Jones Industrial Average moving up by 2.30% to close at 25,019. The Dow is now up 1.21% on a year-to-date basis. The S&P 500 gained 1.50% for the week to close at 2,801 and is up 4.78% year-to-date. The NASDAQ Composite increased 1.79% to close at 7,826. NASDAQ is still the best-performing index among major indices on a year-to-date basis and is up 13.36%.
The best-performing sector was information technology, up 2.32% for the week and is the best-performing sector on a year-to-date basis, up 16.10%. This sector consists of companies like Apple Inc (NASDAQ:AAPL), which was up 12.55% on a year-to-date basis.
International Equities – The international markets were also up this week, with the MSCI Developed Market Index gaining 0.16% to close at 1,973. The MSCI Emerging Market Index gained 1.71% to close at 1,076. Finally, Japan’s Nikkei 225 saw a large gain of 3.71%, to close at 22,597.
Commodities – The commodities markets were all down this week, with crude oil falling $2.79 per barrel to close at $71.01. The price of gold decreased by $15 per troy ounce to close at $1,240. Meanwhile, copper prices saw a decrease of $0.05 and now trade at $2.78.
Be sure to read important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields were mostly mixed this week. The 2-year Treasury increased by 8 bps to now yield 2.58%. The 10-year Treasury yield decreased 5 bps and now yields 2.83%. The 30-year Treasury remained unchanged and continues to yield 2.93%.
Municipal Bonds – Municipal yields were all down this week, with the 2-year AAA-rated bonds falling 3 bps to now yield 1.62%. The 10-year AAA-rated bonds saw a decrease of 3 bps, while the 30-year AAA-rated bonds decreased by 1 bps, to now yield 2.97%. Municipal bond fund flows came back to inflows of $628 million this week. The largest credit spread for the two-year securities increased to 96 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 July 15, 2018.
|Category||Top Subcategory||1-Month Subcategory Return (%)||Top Subcategory Performer||Ticker||1-Month Fund Return (%)||Performance Rationale|
|U.S. Equity Fund||Large Cap Growth Equities||1.11%||Fidelity Advisor® Series Growth Opps||FAOFX||5.04%||The fund has over 43% in technology, which was the best-performing sector last week.|
|International Equity||Latin America Equities||1.74%||BlackRock Latin America Instl||MALTX||4.92%||The fund's largest holding is Itau Unibanco Holding SA (NYSE:ITUB), which was up 4.40% for the week.|
|Commodities||Broad Basket||-5.67%||Direxion Indexed Cmdty & Inc Strat Inv||DXCTX||-2.19%||With commodities and bond prices falling this week, this fund was protected since it had over 80% in cash.|
|Taxable Bonds||Government Bonds||3.03%||Vanguard Extended Duration Trs Idx Instl||VEDTX||4.49%||Longer-term bonds saw the largest gains in price this week.|
|Municipal Bonds||High Yield Muni||0.85%||Dreyfus High Yield Municipal Bond Y||DHYYX||1.65%||High-yield muni bonds saw the largest increase in price.|
Performance Snapshot: Top Fund
Leland Thomson Reuters Vntr Cptl Idx I (LDVIX)
One of the fund’s largest holdings is Netflix Inc (NASDAQ:NFLX), which is up over 108% on a year-to-date basis.
The following table provides the top-performing mutual funds on a YTD basis as of July 15, 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 I||LDVIX||Large Cap Growth Equities||34.00%||1.74%||28.10%||$72||Technology|
|Alger Small Cap Focus Z||AGOZX||Small Cap Growth Equities||29.82%||0.90%||32.10%||$1,410||Technology|
|Morgan Stanley Multi Cap Growth I||CPODX||Large Cap Growth Equities||28.47%||0.95%||54.00%||$727||Technology|
|Wasatch Ultra Growth||WAMCX||Small Cap Growth Equities||27.50%||1.30%||23.20%||$182||Technology|
|ClearBridge Select IS||LCSSX||Mid Cap Growth Equities||27.36%||2.02%||23.70%||$126||Technology|
We provide this report on a weekly basis. To stay up to date with mutual fund market events, return to our News section.