- U.S. markets all had big gains, with the Dow Jones Industrial Average closing at 20,941.
- 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 information technology sector was this week’s top-performing area with a 2.63% return. The sector is up 15.41% on a year-to-date basis and is the best-performing sector. This is led by companies like Apple Inc. (AAPL) and Alphabet Inc. (GOOG), which are both up over 26% and 17%, respectively, on a YTD basis.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International equities followed suit to the U.S. equity markets and ended in the positive for the week. The MSCI Developed Index had an increase of 3.12%, while the MSCI Emerging Index gained 1.74% for the week. Japan’s NIKKEI 225 continued its second week of gains, up 3.09% and closing at 19,197.
Commodities – The commodity sector showed declines for the most part, with crude oil falling $0.29 per barrel and closing at $49.33 per barrel. The price of gold also declined $21 per troy ounce to close at $1,266. Copper had the only increase, up $0.07 per pound to close at $2.61.
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, with the two-year Treasury yield increased by 1 bps to 1.26%. The 10-year Treasury saw a decrease of 3 bps to 2.28%, while the 30-year Treasury remained flat at 2.95%.
Municipal Bonds – Municipal yields gained across the board for all maturities. The two-year AAA-rated bonds increased 3 bps to 1.01%. The 10-year AAA-rated municipal increased by 10 bps, while the 30-year increased by 12 bps. For the third week in a row, muni bond funds showed an inflow, registering $217 million last week.
Credit spreads decreased this week, with the largest spread between the five-year Treasury and the AAA-rated municipal decreasing 7 bps to 36 bps. The trend for longer-term bonds reversed this week, with the 30-year AAA-rated municipal bonds now yielding 7 bps more compared to its 30-year Treasury counterpart.
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||MTD Fund Return (%)||Performance Rationale|
|U.S. Equity Fund||Small Cap Growth||2.89%||Jacob Micro Cap Growth Investor||JMCGX||7.35%||The fund's largest holding is USA Technologies, Inc (USAT), which is up over 15% on a YTD basis.|
|International Equity||India Equities||5.27%||Wasatch Emerging India Institutional||WIINX||8.49%||The fund invests in India-based companies. The BSE SENSEX Index is up over 12% YTD.|
|Commodities||Broad Basket||-1.10%||TCW Enhanced Commodity Strategy I||TGGWX||-0.06%||With commodities falling this week, this fund was protected by being invested in 49% cash and the rest in bonds as a hedge.|
|Taxable Bonds||Government Bonds||1.67%||DoubleLine Long Duration Total Ret Bd I||DBLDX||2.23%||WIth bond yields falling, the value of this bond fund increased in value.|
|Municipal Bonds||High Yield Municipal Bonds||0.81%||PIMCO High Yield Municipal Bond I||PHMIX||1.65%||With yields dropping this week, high-yield bonds were the best-performing segment within the broad municipal bond sector.|
Performance Snapshot: Top Fund
This fund’s largest holding is in MakeMyTrip Limited (MMYT), which is up more than 81% YTD.
Top Five Performers
The following table provides the top-performing mutual funds on a YTD basis as of April 28, 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||Total Assets $ (Millions)||Top Sector Invested|
|Wasatch Emerging India Institutional||WIINX||India Equities||31.56%||2.00%||32.9%||$ 123||Financial Services|
|T. Rowe Price Global Technology||PRGTX||Global Equities||22.77%||0.90%||61.2%||$ 3,800||Technology|
|Morgan Stanley Inst International Opp I||MIOIX||Foreign Large Cap Growth Equities||21.97%||1.34%||49.3%||$ 101||Technology|
|Morgan Stanley Inst Global Opp I||MGGIX||Global Equities||20.79%||1.07%||53.5%||$ 828||Technology|
|Oppenheimer Global Opportunities I||OGIIX||Global Equities||20.45%||0.75%||32.8%||$ 4,500||Technology|
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