- The Dow Jones Industrial Average (DJIA) was the only major U.S. equity index that ended this week in positive territory, increasing 0.31% to a new all-time high of 21,272.
- The best-performing fund so far for 2017 is the Wasatch Emerging India Institutional (WIINX).
- China 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 financials sector was this week’s top-performing area, up 3.60%, and up 4.92% on a year-to-date basis. This was led by top banks like JPMorgan (JPM) and Wells Fargo Co. (WFC), which are both up 5.05% and 4.58% for the week, respectively.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – Like the U.S. markets, international equities were also a mixed bag this week. The MSCI Developed Index had a decrease of 1.16%, while the MSCI Emerging Index rose 0.36% for the week. Japan’s NIKKEI 225 had a decline after two weeks of big gains and is down 0.81% to close at 20,013.
Commodities – The commodity sector was also down, with the exception of copper. Crude oil decreased $1.83 per barrel and closed at $45.83 per barrel. The price of gold decreased $8 per troy ounce to close at $1,269. Copper, on the other hand, was up $0.08 for the week to close at $2.65.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields all gained this week, a reversal from last week’s drop. The 2-year and 10-year Treasuries both increased 4 bps, while the 30-year Treasury yield increased 5 bps to 2.86%.
Municipal Bonds – Municipals remained relatively stable this week. The 2-year AAA-rated bonds increased 1 bps; the 10-year AAA-rated bonds remained flat; and the 30-year AAA-rated bonds increased 1 bps. Municipal bond funds returned to positive this week, with $871 million of inflows. The largest credit spread among Treasury and muni bonds widened to 55 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||3.04%||Zevenbergen Genea Institutional||ZVGIX||10.79%||The fund's largest holding is Amazon, Inc. (AMZN), which is up over 31% on a YTD basis.|
|International Equity||China Equities||7.43%||Neuberger Berman Greater China Eq Instl||NCEIX||11.64%||The fund invests in Chinese companies, with its largest holding in Alibaba Group Holdings Ltd (BABA,) which is up over 58% YTD.|
|Commodities||Broad Basket||-0.31%||Direxion Indexed Cmdty Strategy A||DXCTX||2.69%||This fund can go long in any commodity sector or remain flat (in cash) as a hedge. With oil down, this fund was heavy in cash but long in gold, which has increased.|
|Taxable Bonds||Government Bonds||3.27%||Vanguard Extended Duration Trs Idx Instl||VEDTX||4.87%||Bonds with longer maturities are increasing more in value than shorter-term bonds.|
|Municipal Bonds||Single State Municipal Bonds||1.82%||Nuveen CA High Yield Municipal Bond C2||NCHCX||2.82%||With muni yields remaining relatively flat, California muni bond funds showed slight gains.|
Performance Snapshot: Top Fund
The fund’s largest holding is in Housing Development Finance Corp Ltd (NSE:HDFC), which is up over 30% on a year-to-date basis.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis as of June 9, 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||34.22%||2.00%||35.00%||$154||Financial Services|
|T. Rowe Price Global Technology||PRGTX||Global Equities||33.59%||0.90%||54.60%||$4,370||Technology|
|Transamerica Capital Growth I||TFOIX||Large Cap Growth Equities||32.23%||0.94%||61.20%||$718||Technology|
|Neuberger Berman Greater China Eq Instl||NCEIX||China Equities||31.88%||1.76%||51.40%||$93||Financial Services|
|Morgan Stanley Inst Growth IS||MGRPX||Large Cap Growth Equities||31.14%||0.54%||56.90%||$3,510||Technology|
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