- U.S. markets were positive this week, with the Dow Jones Industrial Average closing at 20,548.
- The best-performing fund so far for 2017 is Wasatch Emerging India Institutional (WIINX).
- India Equities continued 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 industrial sector was this week’s top-performing area with a 2.05% return. The sector is up 5.07% on a year-to-date basis. This is led by companies like Boeing Co. (BA) and 3M Co. (MMM), which are both up over 14% and 9%, respectively, on a YTD 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 0.11%, while the MSCI Emerging Index dropped slightly by 0.08% for the week. Japan’s NIKKEI 225 finally had a positive week after five weeks of declines, increasing 1.05% and closing at 18,621.
Commodities – The commodity sector showed declines, with crude oil falling $3.56 per barrel and closing at $49.62 per barrel. The price of gold had a slight increase of $2 per troy ounce to close at $1,287, while copper had a decline of $0.03 per pound to close at $2.54.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields showed an increase across all maturities. The two-year Treasury yield increased by 4 bps to 1.25%. The 10-year Treasury saw an increase of 7 bps to 2.31%, while the 30-year Treasury increased by 6 bps, yielding 2.95%.
Municipal Bonds – On the other hand, municipal yields did not show gains this week. The two-year AAA-rated bonds stayed flat and remained at 0.98%. The 10-year AAA-rated municipal decreased by 5 bps, while the 30-year decreased by 2 bps.
For the second week in a row, muni bond funds showed an inflow of $194 million.
Credit spreads increased this week, with the largest spread between the five-year Treasury and the AAA-rated municipal increasing 5 bps to 43 bps. The spread between the 30-year AAA-rated municipal and the 30-year Treasury reversed, and currently, Treasuries yield 5 bps more than their municipal counterparts.
You can also read about essential tax tips for mutual funds, so 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||Small Cap Growth||2.42%||Morgan Stanley Inst Small Co Gr I||MSSGX||7.24%||The fund's largest holding is Athenahealth, Inc. (ATHN), which is up over 13% on a YTD basis.|
|International Equity||India Equities||4.07%||Wasatch Emerging India Institutional||WIINX||7.76%||The fund invests in India-based companies. The BSE SENSEX Index is up over 11% YTD.|
|Commodities||Broad Basket||-0.88%||Rydex Commodities Strategy A||RYMEX||0.21%||Fund has been hedging against falling commodity prices by having over 78% in cash.|
|Taxable Bonds||Government Bonds||2.92%||PIMCO Extended Duration Instl||PEDIX||4.06%||Fund has the flexibility to go long or short with Treasuries, corporates or cash.|
|Municipal Bonds||Muni New York Long||1.75%||Oppenheimer Rochester® AMT-Free NY Muni Y||ONYYX||4.12%||Muni yields dropped this week, causing bond prices to increase.|
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 April 21, 2017. Only those funds that are rated five stars by Morningstar and that generated YTD returns greater than equal to 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||29.24%||2.00%||32.90%||$123||Financial Services|
|T. Rowe Price Global Technology||PRGTX||Global Equities||19.52%||0.90%||61.20%||$3,800||Technology|
|Morgan Stanley Inst International Opp I||MIOIX||Foreign Large Cap Growth Equities||19.42%||1.34%||49.30%||$85||Technology|
|Morgan Stanley Inst Global Opp I||MGGIX||Global Equities||18.30%||1.07%||53.50%||$734||Technology|
|City National Rochdale Emerg Mkts Y||CNRYX||Diversified Emerging Markets||17.63%||1.37%||27.60%||$1,200||Technology|
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