News
Mutual Funds and ETFs Scorecard: May 27 Edition
Iuri Struta
|
After weeks of poor performance, markets have reversed losses and small-caps have been...
As the market has performed fairly poorly this year, many mutual funds have posted losses throughout 2015. After all, the S&P 500 Index is down 4% year-to-date. This will inevitably bring down many mutual fund classes along with it, and after including fees and expenses, performance of many mutual funds may disappoint investors.
However, there is still an argument to be made for sticking with high-quality mutual funds, and the market in general.
Flows have trended downward more recently as well. In September, equity funds posted outflows in three out of the four weeks. Equity fund outflows totaled $19.1 billion while inflows totaled $12.7 billion, according to Lipper. That equates to a net outflow of $6.4 billion.
Of course, this is no surprise given fund flows tend to track the performance of the broader market in general. As the market has declined this year, investors have taken money out of mutual funds, using them as a source of funds and a means to reduce exposure to the perception of future market declines. The equity market had enjoyed a six-year, virtually uninterrupted rise since the financial crisis. At some point, volatility was bound to return.
For example, taxable bonds and municipal bonds have posted decent across-the-board gains in the third quarter, and longer-duration bonds outperformed intermediate-term bonds. This is because bond prices increase when yields decline since price and yield are inversely related.
For investors with a long-term time horizon, it makes sense to use market downturns to add to mutual funds since those funds can be purchased at more attractive prices.
Receive email updates about best performers, news, CE accredited webcasts and more.
News
Iuri Struta
|
After weeks of poor performance, markets have reversed losses and small-caps have been...
Justin Kuepper
|
Let's take a look at how these trends have played out in actively-managed...
Justin Kuepper
|
Let's take a closer look at whether transparency really matters for portfolio managers...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...
As the market has performed fairly poorly this year, many mutual funds have posted losses throughout 2015. After all, the S&P 500 Index is down 4% year-to-date. This will inevitably bring down many mutual fund classes along with it, and after including fees and expenses, performance of many mutual funds may disappoint investors.
However, there is still an argument to be made for sticking with high-quality mutual funds, and the market in general.
Flows have trended downward more recently as well. In September, equity funds posted outflows in three out of the four weeks. Equity fund outflows totaled $19.1 billion while inflows totaled $12.7 billion, according to Lipper. That equates to a net outflow of $6.4 billion.
Of course, this is no surprise given fund flows tend to track the performance of the broader market in general. As the market has declined this year, investors have taken money out of mutual funds, using them as a source of funds and a means to reduce exposure to the perception of future market declines. The equity market had enjoyed a six-year, virtually uninterrupted rise since the financial crisis. At some point, volatility was bound to return.
For example, taxable bonds and municipal bonds have posted decent across-the-board gains in the third quarter, and longer-duration bonds outperformed intermediate-term bonds. This is because bond prices increase when yields decline since price and yield are inversely related.
For investors with a long-term time horizon, it makes sense to use market downturns to add to mutual funds since those funds can be purchased at more attractive prices.
Receive email updates about best performers, news, CE accredited webcasts and more.
News
Iuri Struta
|
After weeks of poor performance, markets have reversed losses and small-caps have been...
Justin Kuepper
|
Let's take a look at how these trends have played out in actively-managed...
Justin Kuepper
|
Let's take a closer look at whether transparency really matters for portfolio managers...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...