- U.S. markets were negative for the week, with the Dow Jones Industrial Average closing at 20,656.
- The best-performing fund so far for 2017 is Wasatch Emerging India Institutional (WIINX).
- India Equities continues to be the best-performing year-to-date and rolling one-month mutual fund subcategory.
- Make sure to check out the previous edition of the Weekly Roundup to keep track of changing trends.
The real estate sector was this week’s top-performing area, with a positive 0.63% return. With positive existing and new home sales from the week prior, the real estate sector saw an uptick. The sector is also up 3.38% on a year-to-date basis.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International equities were a mixed bag this week. The MSCI Developed Index had a slight decrease of 0.65%, while the MSCI Emerging Index saw an increase of 0.38% for the week. Japan’s NIKKEI 225 continues to fall for the fourth week in a row, down 1.29%, and closed at 18,665.
Commodities – The commodity sector performed well this week, with crude oil increasing $1.64 per barrel and closing at $52.24 per barrel. The price of gold increased $7 per troy ounce to $1,254, while copper had a slight decline of $0.01 per pound to close at $2.65.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields showed little movement overall except in the shorter-term maturities. The two-year Treasury yield increased by 4 bps to 1.29%. The 10-year Treasury saw a modest decline of 1 bps to 2.38%. The 30-year Treasury remained flat for the third week in a row and continues to yield 3.01%.
Municipal Bonds – Municipal yields declined across all maturities, with the two-year AAA-rated bonds decreasing 2 bps to 1.01%. The 10-year AAA-rated municipal decreased by 7 bps while the 30-year decreased by 9 bps. After seeing inflows for two weeks in a row, municipal bond funds witnessed outflows of $368 million.
Credit spreads widened, with the largest spread still remaining between the five-year Treasury and the AAA-rated municipal at 40 bps. The spread between the 30-year AAA-rated municipal and the 30-year Treasury showed big movement this week, with Treasuries now providing a 3 bps higher yield than the municipal equivalent.
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||1-Month Subcategory Return (%)||Top Subcategory Performer||Ticker||1-Month Fund Return (%)||Performance Rationale|
|U.S. Equity Fund||Large Cap Growth||0.44%||Zevenbergen Genea Institutional||ZVGIX||3.78%||The fund's largest holdings include Amazon, Inc. (AMZN) and Tesla Inc. (TSLA), which are up over 20% and 46%, respectively, on a YTD basis.|
|International Equity||India Equities||8.54%||Wasatch Emerging India Institutional||WIINX||13.06%||The fund invests in India-based companies. The BSE SENSEX Index is up over 11% YTD.|
|Commodities||Broad Basket||-0.70%||BlackRock Commodity Strategies Inv A||BCSAX||0.41%||Fund invests heavily in oil stocks, which are up in the last week, while the remaining is invested in treasuries.|
|Taxable Bonds||Government Bonds||2.17%||PIMCO Extended Duration Instl||PEDIX||3.04%||This fund can go long or short with treasuries, corporates or cash.|
|Municipal Bonds||High-Yield Municipal Bonds||1.43%||Oppenheimer Rochester® AMT-Free Munis Y||OMFYX||4.72%||With muni yields continuing to fall this week, muni mutual funds increased in value.|
Performance Snapshot: Top Fund
This fund’s largest holding is in MakeMyTrip Limited (MMYT), which is up more than 64% YTD.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis, as of April 7, 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|
|Wasatch Emerging India Institutional||WIINX||India Equities||26.58%||2.00%||32.90%||$104||Financial Services|
|Matthews India Instl||MIDNX||India Equities||18.24%||0.90%||44.60%||$1,770||Financial Services|
|T. Rowe Price Global Technology||PRGTX||Global Equities||18.08%||0.90%||61.20%||$3,800||Technology|
|Morgan Stanley Inst International Opp I||MIOIX||Foreign Large Cap Growth Equities||16.74%||1.34%||49.30%||$85||Technology|
|Morgan Stanley Inst Global Opp IS||MGTSX||Global Equities||16.06%||3.56%||53.50%||$734||Technology|