- U.S. markets hit all-time highs with the DJIA closing at 20,269.
- The best-performing fund so far for 2017 is First Eagle Global I (FEGIX).
- India Equities is the best month-to-date performing mutual fund subcategory.
- Make sure to check out the previous edition of the Weekly Roundup to keep track of changing trends.
Industrials was the week’s best performing sector, up 1.65% for the week and 3.48% year-to-date. This sector is one of the areas expected to benefit from Trump’s plans to increase the country’s infrastructure spending.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – The MSCI Developed Index showed little movement again, down by 0.02%, while the MSCI Emerging Index demonstrated a relatively large gain, up 1.25% for the week. Japan’s NIKKEI 225 rebounded from last week’s decline and was one of the best performing major international indices for the week, up 2.44% to close at 19,379.
Commodities – The commodity sector showed a positive gain, with oil increasing $0.03 per barrel, or 0.05%, and closing at $53.86 per barrel. The price of gold increased $16 per troy ounce to reach $1,234. Copper also had a big increase of $0.15 per pound, or 5.57%, and closed at $2.77.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields fell drastically across all maturities. The 2-year Treasuries fell 1 bps while the 10-year and 30-year fell 5 bps and 8 bps, respectively.
Municipal Bonds – However, municipal yields remained relatively stable with the 2-year AAA-rated yields dropping 4 bps, and the 10-year and 30-year AAA-rated yields remaining unchanged from the week before.
In this context, you can also read about essential tax tips for mutual funds, so that you are aware of key strategies to limit your tax burden.
Performance Snapshot: Top Fund Category
|Category||Top Subcategory||MTD Subcategory Return (%)||Top Subcategory Performer||Ticker||MTD Fund Return (%)||Performance Rationale|
|U.S. Equity Fund||Mid-Cap Growth||3.28%||BlackRock Mid-Cap Growth Equity Instl||CMGIX||5.64%||Fund's largest two holdings are Netflix, Inc. (NFLX) and Domino's Pizza, Inc. (DPZ), which are both up over 15% YTD.|
|International Equity||India Equities||9.53%||Wasatch Emerging India Investor||WAINX||11.04%||This fund specializes in companies in India; the BSE SENSEX Index is up over 6.4% YTD.|
|Commodities||Broad Basket||3.03%||AQR Risk-Balanced Commodities Strategy I||ARCIX||6.67%||Fund has high exposure to gold, which continues to show gains.|
|Taxable Bonds||Emerging Market Bonds||1.85%||Barings Emerg Mkts Dbt Blnded Ttl Ret I||BXEIX||4.34%||Fund invests in government and corporate bonds from emerging market countries.|
|Municipal Bonds||Muni Single State Short||0.43%||Oppenheimer Rochester® LtdTerm NY MunisY||LTBYX||0.70%||Shorter-term bond funds tend to perform better than longer-term counterparts when interest rates rise.|
Performance Snapshot: Top Fund
This fund is heavily invested in gold, which is up over 5% year-to-date.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis, as of February 10, 2017. Only those funds that are rated 5 stars by Morningstar and that generated YTD return greater than that achieved by the S&P 500 are included.
|Top-Performing Fund||Ticker||Category||YTD Return (%)||Net Expense Ratio (%)||% of Assets in Top 10 Holdings||Net Assets $ (Millions)||Top Sector Invested|
|First Eagle Gold I||FEGIX||Precious Metals||15.26%||0.98%||62.70%||$1,220||Basic Materials|
|Wasatch Emerging India Investor||WAINX||India Equities||14.29%||1.96%||32.90%||$90||Financial Services|
|BlackRock Latin America I||MALTX||Latin America Equities||13.64%||1.33%||47.90%||$162||Financial Services|
|T. Rowe Price Global Technology||PRGTX||Global Equities||13.01%||0.91%||61.20%||$3,250||Technology|
|Ivy Emerging Markets Equity I||IPOIX||Emerging Markets Equities||11.03%||1.22%||34.70%||$598||Technology|
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