Mutual Funds Weekly Roundup: March 23

MutualFunds.com provides weekly information (March 13 – March 17) 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. markets were all slightly positive, with the Dow Jones Industrial Average reaching 20,915.

• The best-performing fund so far for 2017 is T. Rowe Price Global Technology (PRGTX).

• India Equities is the best-performing mutual fund subcategory.

• Make sure to check out the previous edition of the Weekly Roundup to keep track of changing trends.

U.S. Equities – U.S. equity markets had a slight rebound from last week’s decline. The Dow Jones Industrial Average had a moderate increase of 0.06% to 20,915 and is still up 5.83% year-to-date. The S&P 500 increased 0.24% for the week, hitting 2,378. Among the major U.S. indices, the NASDAQ was the best performer for the week, increasing 0.67% for the week to 5,901. With the Fed raising rates by 0.25% this week, markets reacted positively as the decision had been expected by most investors.

The real estate sector was this week’s best performer and was up 1.68% for the week. However, it remains the only negative sector on a trailing 1-year return basis, down -1.14%.

Explore our Mutual Fund Education section to learn more about important mutual fund concepts.

International Equities – International equities did very well on average, with the MSCI Developed Index increasing 2.09%, while the MSCI Emerging Index increased by 4.29% for the week. Japan’s NIKKEI 225 had a slight decrease of -0.42% for the week and closed at 19,522.

Commodities – The commodity sector improved for the week, with oil seeing a slight increase of $0.29 per barrel and closing at $48.78 per barrel. The price of gold increased by $29 per troy ounce to $1,230, while copper also had an increase of $0.10 per pound and closed at $2.69.

Be sure to read our important tips on how to invest in the right commodity-based mutual fund.

Taxable Bonds – Treasury yields declined across all maturities, with the 2-year Treasury yield decreasing by 5 bps. The 10-year and 30-year Treasuries also saw decreases from last week’s increases, down by 8 bps and 5 bps, respectively.

Municipal Bonds – Shorter-term municipal yields increased with the 2-year AAA-rated municipal yield increasing by 4 bps. The 10-year and 30-year AAA-rated municipal yields, on the other hand, decreased by 5 bps and 6 bps, respectively.

Municipal bond funds posted outflows of $149 million for the week. With the Fed raising rates during this week’s meeting, investors seem to be fleeing from bond funds that are likely to be negatively impacted.

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.

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 1-month return generated as of March 17, 2017.

Top-performing fund: T. Rowe Price Global Technology (PRGTX)

This fund’s largest holding is in Salesforce.com Inc (CRM), which is up more than 21% YTD.

Top 5 Performers

The following table provides the top-performing mutual funds on a YTD basis as of March 17, 2017. Only those funds that are rated 5 stars by Morningstar and that generated YTD returns greater than that achieved by the S&P 500 are included.

We provide this report on a weekly basis. To stay up to date with mutual fund market events, return to our News section.