Vanguard's Patent About to Expire: What's Next for Active ETFs?
Justin Kuepper
|
Vanguard's patent on adding an ETF share class to mutual funds will expire...
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.
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. |
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 |
Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
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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.
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. |
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 |
Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
|
Vanguard's patent on adding an ETF share class to mutual funds will expire...
Sam Bourgi
|
Regarding portfolio allocation, the investment manager PIMCO believes bonds are alluring again thanks...
Kristan Wojnar, RCC™
|
Let’s dive into the business building ideas of social media planning, cultivating new...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...