- U.S. markets have a stellar week of gains, with the Dow Jones Industrial Average increasing 0.59% this week to a new all-time high of 21,206.
- The best-performing fund so far for 2017 is the T. Rowe Price Global Technology (PRGTX).
- Japan Stock 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 telecommunications sector was this week’s top-performing area, up 2.22%, although it is the second-worst performer on a year-to-date basis, being down 7.50%. This is led by wireless phone companies like AT&T (T) and Verizon Communications (VZ), which are up over 1.97% and 2.41% for the week, respectively.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International equities were a mixed bag this week. The MSCI Developed Index had an increase of 1.74%, while the MSCI Emerging Index had a slight decrease of 0.12% for the week. Japan’s NIKKEI 225 had its second week in a row of big gains, up 1.84% to close at 20,177.
Commodities – The commodity sector was mostly down, with the exception of gold. Crude oil decreased $1.24 per barrel and closed at $47.66 per barrel. The price of gold increased for the third week in a row, up $21 per troy ounce to close at $1,277. Copper, on the other hand, was down $0.02 for the week 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 all declined this week besides the 2-year. The 2-year Treasury remained flat while the 10-year Treasury yield dropped 9 bps. The 30-year Treasury yield had the largest decline this week, down 10 bps to 2.81%.
Municipal Bonds – Municipals declined across all maturities. The 2-year AAA-rated bonds dropped 3 bps, the 10-year AAA-rated bonds dropped 9 bps, and the 30-year AAA-rated bonds dropped 11 bps. Municipal bond funds broke seven weeks of net positive fund flow with $116 million of outflows. The largest credit spread among Treasury and muni bonds widened to 50 bps for the 5-year securities.
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||3.36%||Zevenbergen Genea Institutional||ZVGIX||9.51%||The fund's largest holding is Amazon, Inc. (AMZN), which is up over 34% on a YTD basis.|
|International Equity||Japan Stock||5.22%||Matthews Japan Instl||MIJFX||7.36%||The fund invests in Japanese companies and the Nikkei 225 is up 3.76% on a month-to-date basis.|
|Commodities||Broad Basket||-1.53%||Catalyst Hedged Commodity Strategy A||CFHAX||0.46%||With commodities down for the year, this fund was protected by being invested in 39% cash and 26% bonds as a hedge.|
|Taxable Bonds||Government Bonds||3.13%||Vanguard Extended Duration Trs Idx Instl||VEDTX||5.09%||With bond yields falling across the board this week, longer maturity Treasuries saw the biggest gain.|
|Municipal Bonds||Single- State Municipal Bonds||1.95%||Nuveen CA High Yield Municipal Bond I||NCHRX||3.13%||With muni yields declining, investors flocked around high yield California muni bonds.|
Performance Snapshot: Top Fund
With over 68% in technology, the fund is this year’s best-performing fund. Its largest holding is in Salesforce.com (CRM), which is up more than 32% YTD.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis as of June 2, 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|
|T. Rowe Price Global Technology||PRGTX||Global Equities||32.58%||0.90%||54.60%||$4,370||Technology|
|Wasatch Emerging India Institutional||WIINX||India Equities||32.33%||2.00%||35.00%||$154||Financial Services|
|Transamerica Capital Growth I||TFOIX||Large-Cap Growth Equities||31.60%||0.94%||61.20%||$718||Technology|
|Morgan Stanley Inst International Opp I||MIOIX||Foreign Large-Cap Growth Equities||31.15%||1.34%||49.30%||$138||Technology|
|Morgan Stanley Inst Growth IS||MGRPX||Large-Cap Growth Equities||31.14%||0.54%||56.90%||$3,510||Technology|
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