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 finished mostly higher this week, while international equities were mostly lower.
- The best-performing fund on a year-to-date basis is the Alger Small Cap Focus Z (AGOZX), with a year-to-date return of 33.35%.
- U.S large-cap growth equities is the best-performing mutual funds subcategory based on rolling-month returns.
- Make sure to check out our previous edition to keep track of changing trends in the mutual funds industry.
U.S. Equities – The U.S. equity markets were mostly higher this week with the exception of the NASDAQ. For the week, the Dow Jones Industrial Average gained 1.48% to close at 25,669, boosting its year-to-date returns to 5.36%. The broader S&P 500 Index also advanced 0.7% during the week to reach 2,850. For year-to-date, the S&P 500 Index has gained 7.92%. Meanwhile, the technology-heavy Nasdaq Composite Index fell 0.23% during the week to close at 7,816. Despite the loss, the NASDAQ is the best-performing major stock index on a year-to-date basis, having gained 14.01%.
The week’s best-performing sector was telecommunication services, gaining more than 3.7%. This sector consists of companies like Verizon Communications (VZ), which has gained 4.65% over the past five days.
International Equities – The international markets were down this week, with the MSCI Developed Market Index declining 1.10% to close at 1,928. The MSCI Emerging Market Index has declined 3.68% to close at 1,023. Finally, Japan’s Nikkei 225 jumped 1.56% to 22,199.
Commodities – The commodities markets were down across the board this week, with Brent crude oil falling 1.3% to close at $71.83 a barrel. The price of gold fell 2.2% to $1,184 a troy ounce. Meanwhile, copper prices fell 1.5% to $2.69.
Be sure to read important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – The main Treasury yields were virtually unchanged for the week. The 2-year, 10-year and 30-year U.S. Treasuries were flat week-on-week. The benchmark 10-year Treasury yield held at 2.87%.
Municipal Bonds – Municipal yields rose this week, with the 10-year AAA-rated bonds edging up 0.15 bps to 2.59%.
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 August 20, 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||2.21%||Segall Bryant & Hamill Large Cap Div Instl||WILGX||5.03%||The fund's top holding is Lowe's Companies Inc. (NASDAQ:LOW), which is up 1.93%% for the week.|
|International Equity||World Large Stock||-0.69%||AA/HIMCO Global Enhanced Dividend I||WGRIX||3.07%||The fund's largest holding is Consolidated-Tomoka Land Co (NYSE:CTO), which up 7.5% for the rolling month.|
|Commodities||Broad Basket||-0.62%||SilverPepper Commodity Strats Glb Macro Adv||SPCAX||1.44%||With commodities and bond prices falling this week, this fund was protected since it had over 80% in cash.|
|Taxable Bonds||Long Government||1.09%||Vanguard Extended Duration Treasury Index||VEDIX||1.46%||Longer term bonds gained preference this week as investors went for their safe haven status|
|Municipal Bonds||High Yield Muni||0.34%||Oppenheimer Rochester Short Duration HI Muni A||OPITX||3.23%||This bond benefited from large holdings of state and local obligations.|
Performance Snapshot: Top Fund
Alger Small Cap Focus Z (AGOZX)
This fund allocates 97.99% of its holdings to stocks, which are largely concentrated in the technology industry. The fund is also well diversified, with the biggest holding (Veeva Systems Inc. Class A) accounting for 3.43% of total assets.
The following table provides the top-performing mutual funds on a YTD basis as of August 20, 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||33.40%||0.90%||32.10%||$1.56||Technology|
|Leland Thomson Reuters Vntr Cptl Idx I||LDVIX||Large Cap Growth Equities||27.60%||1.74%||30.40%||$81||Technology|
|Wasatch Ultra Growth||WAMCX||Small Cap Growth Equities||27.60%||1.30%||22.70%||$208||Technology|
|ClearBridge Select IS||LCSSX||Mid Cap Growth Equities||27.00%||2.08%||24.60%||$140||Technology|
|Morgan Stanley Multi Cap Growth I||CPODX||Large Cap Growth Equities||25.80%||0.95%||53.80%||$758||Technology|
We provide this report on a weekly basis. To stay up to date with mutual fund market events, return to our News section.