- U.S. markets were negative again for the week, with the Dow Jones Industrial Average closing at 20,453.
- 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 for the second week in a row, with a positive 0.90% return. This sector was one of three that were positive for the week, the others being consumer staples and utilities. The real estate sector is also up 4.13% 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 mostly up for the week. The MSCI Developed Index had a slight increase of 0.06%, while the MSCI Emerging Index also saw an increase of 0.16% for the week. Japan’s NIKKEI 225 continues to fall for the fifth week in a row, down 0.92%, and closed at 18,427.
Commodities – The commodity sector mostly performed well, with crude oil increasing $1.48 per barrel and closing at $53.18 per barrel. The price of gold increased $36 per troy ounce to $1,286, while copper had a decline of $0.09 per pound to close at $2.57.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields showed a big decline across all maturities. The two-year Treasury yield decreased by 8 bps to 1.21%. The 10-year Treasury saw a modest decline of 14 bps to 2.24%, while the 30-year Treasury fell by 12 bps, yielding 2.89%.
Municipal Bonds – Municipal yields also declined across all maturities, with the two-year AAA-rated bonds decreasing by 3 bps to 0.98%. The 10-year AAA-rated municipal decreased by 8 bps, while the 30-year decreased by 6 bps. After last week’s outflows, muni bond funds see a very large influx of funds, showing inflow of around $1.51 billion.
Credit spreads narrowed this week, with the spread between 5-year Treasury and muni at 32 bps.The spread between the 30-year AAA-rated municipal and the 30-year Treasury reversed by 6 bps for this week, with muni now yielding 3 bps higher than its Treasury equivalent.
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||-1.28%||Morgan Stanley Inst Growth IS||MGRPX||1.42%||The fund's largest holdings are Amazon, Inc. (AMZN) and Facebook, Inc. (FB), which are up over 17% and 21%, respectively, on a YTD basis.|
|International Equity||India Equities||8.18%||Wasatch Emerging India Investor||WAINX||14.54%||The fund invests in India-based companies. The BSE SENSEX Index is up over 10% YTD.|
|Commodities||Broad Basket||2.68%||Goldman Sachs Commodity Strategy R6||GCCUX||4.74%||Fund is invested in oil and cash, which has benefited with a 7% increase in oil over the last month and protection from the downside.|
|Taxable Bonds||Government Bonds||6.05%||PIMCO Extended Duration Instl||PEDIX||8.76%||Fund can go long or short with Treasuries, corporates or cash.|
|Municipal Bonds||Muni California Long||2.06%||Oppenheimer Rochester® CA Municipal C||OCACX||3.29%||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 71% YTD.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis as of April 13, 2017. Only those funds that are rated five stars by Morningstar and that generated YTD returns 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||28.90%||2.00%||32.90%||$104||Financial Services|
|Matthews India Instl||MIDNX||India Equities||18.28%||0.90%||44.60%||$1,770||Financial Services|
|T. Rowe Price Global Technology||PRGTX||Global Equities||17.32%||0.90%||61.20%||$3,800||Technology|
|Morgan Stanley Inst International Opp I||MIOIX||Foreign Large Cap Growth Equities||17.21%||1.34%||49.30%||$85||Technology|
|City National Rochdale Emerg Mkts Y||CNRYX||Diversified Emerging Markets||16.06%||1.37%||27.60%||$1,200||Technology|
Sign up for Advisor Access
Receive email updates about best performers, news, CE accredited webcasts and more.
Let’s face it, the words we use everyday matter! Our content for this...