- U.S. markets were a mixed bag this week, with the Dow Jones Industrial Average falling back below the 21,000 mark to finish the week at 20,897.
- The best-performing fund so far for 2017 is Wasatch Emerging India Institutional (WIINX).
- Europe equities is the best-performing 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 again for the third week in a row, up 1.23%. The sector is up 18.46% on a year-to-date basis and is the by far the best-performing sector. This is led by companies like Apple Inc. (AAPL) and Alphabet Inc. (GOOG), which are both up over 34% and 27%, respectively, on a YTD basis.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International equities showed gains and ended in the positive for the week in the wake of the newly elected French President Macron on Monday. The MSCI Developed Index had an increase of 0.35%, while the MSCI Emerging Index had a more modest gain of 2.49% for the week. Japan’s NIKKEI 225 continued its fourth week of gains, up 2.25% and closing at 19,884.
Commodities – The commodity sector showed little movement this week, with crude oil falling $1.62 per barrel and closing at $47.84 per barrel. The price of gold declined slightly, down $1 per troy ounce to close at $1,226. Copper was flat for the week to close at $2.52.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields dropped except for the 30-year. The two-year Treasury yield decreased by 2 bps while the 10-year saw a decrease of 2 bps. The 30-year remained flat to yield 2.99%.
Municipal Bonds – Municipals had a decline across all maturities. The two-year AAA-rated bonds dropped 3 bps, the 10-year AAA-rated dropped 4 bps and the 30-year AAA-rated bonds dropped 5 bps. Municipal bond funds also continued on its fifth week of net positive fund flows. The credit spread between the 5-year Treasury and AAA-rated muni bonds widened to 45 bps. The 30-year AAA-rated muni bonds managed to fall 5 bps this week to now yield the same as its Treasury counterpart.
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||Large Cap Growth||4.31%||Zevenbergen Genea Institutional||ZVGIX||13.60%||The fund's largest holding is Amazon, Inc. (AMZN), which is up over 28% on a YTD basis.|
|International Equity||Europe Equities||6.55%||Fidelity Advisor® Europe I||FHJMX||9.64%||The fund invests in European-based companies like those invested in the Euro STOXX 50 Index that is up over 9% month-to-date.|
|Commodities||Broad Basket||-3.71%||Catalyst Hedged Commodity Strategy I||CFHIX||0.00%||With commodities falling again this week, this fund was protected by being invested in 39% cash and 26% bonds as a hedge.|
|Taxable Bonds||Emerging-Markets Local-Currency Bond||1.42%||Barings Emerging Markets Local Ccy Dbt A||BXLAX||2.20%||With global currencies improving last week, this bond fund was positively affected.|
|Municipal Bonds||High Yield Municipal Bonds||0.44%||Nuveen High Yield Municipal Bond I||NHMRX||0.89%||With yields declining, high-yield muni bond funds showed modest declines.|
Performance Snapshot: Top Fund
This fund’s largest holding is in MakeMyTrip Limited (MMYT), which is up more than 73% YTD.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis as of May 12, 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||32.33%||2.00%||35.00%||$154||Financial Services|
|T. Rowe Price Global Technology||PRGTX||Global Equities||26.55%||0.90%||54.60%||$4,030||Technology|
|Morgan Stanley Inst International Opp I||MIOIX||Foreign Large Cap Growth Equities||25.79%||1.34%||49.30%||$138||Technology|
|Morgan Stanley Inst Growth IS||MGRPX||Large Cap Growth Equities||24.41%||0.54%||56.90%||$3,510||Technology|
|Morgan Stanley Inst Global Opp I||MGGIX||Global Equities||24.08%||1.07%||53.50%||$925||Technology|
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