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 industrials sector was this week’s top-performing area, up 1.74%, and up 10.66% on a year-to-date basis. This was led by companies like 3M Co. (MMM) and Boeing Co. (BA), which are both up 7.09% and 8.89% over the last one month, respectively.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International markets were mostly down for the week, with the exception of the MSCI Developed Index that had a slight increase of 0.03%. The MSCI Emerging Index had a larger decline of 1.41% for the week. Japan’s NIKKEI 225 had a decline again this week and is down 0.35% to close at 19,943.
Commodities – The commodity sector was also down across the board. Crude oil decreased $1.09 per barrel and closed at $44.74 per barrel. The price of gold decreased $15 per troy ounce to close at $1,254. Copper was also down for the week, declining $0.09 to close at $2.56.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields dropped this week, as the Fed raised rates 25 bps. The 2-year Treasury dropped 1 bps and the 10-year Treasury dropped 5 bps. The 30-year Treasury yield decreased 8 bps to 2.78%.
Municipal Bonds – Municipals remained relatively flat this week. The 2-year AAA-rated bonds increased 1 bps; the 10-year AAA-rated bonds decreased 1 bps, while the 30-year AAA-rated bonds remained unchanged. Municipal bond funds had its second week of inflows with $310 million. The largest credit spread among Treasury and muni bonds tightened to 50 bps for the 5-year securities.
Category | Top Subcategory | 1-Month Subcategory Return (%) | Top Subcategory Performer | Ticker | 1-Month Fund Return (%) | Performance Rationale |
---|---|---|---|---|---|---|
U.S. Equity Fund | Large Cap Value | 1.34% | Wells Fargo C&B Large Cap Value Admin | CBLLX | 3.81% | The fund's largest holding is Abbott Laboratories (ABT), which is up over 25% on a YTD basis. |
International Equity | Japan Equities | 2.20% | Hennessy Japan Institutional | HJPIX | 3.67% | The fund invests in Japanese companies, with its largest holding in Keyence Corp NPV (KYCCF), which is up over 28% YTD. |
Commodities | Broad Basket | -3.11% | Catalyst Hedged Commodity Strategy A | CFHAX | 0.64% | This fund was invested in short-term treasuries and has remained stable, while oil prices dropped. |
Taxable Bonds | Government Bonds | 3.88% | Vanguard Extended Duration Trs Idx Instl | VEDTX | 6.25% | Bonds with longer maturities are increasing more in value than shorter-term bonds. |
Municipal Bonds | Single State Municipal Bonds | 1.40% | Nuveen CA High Yield Municipal Bond I | NCHRX | 2.26% | With muni yields remaining relatively flat, California muni bond funds showed slight gains. |
The fund’s largest holding is in Housing Development Finance Corp Ltd (NSE:HDFC), which is up over 29% 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 16, 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 | 34.88% | 2.00% | 35.00% | $182 | Financial Services |
Morgan Stanley Inst International Opp I | MIOIX | Foreign Large Cap Growth Equities | 29.20% | 1.34% | 50.50% | $196 | Consumer Defense |
Baron Partners Institutional | BPTIX | Mid Cap Growth Equities | 28.75% | 1.52% | 97.60% | $1,990 | Consumer Cyclical |
T. Rowe Price Global Technology | PRGTX | Global Equities | 28.67% | 0.90% | 54.60% | $4,890 | Technology |
Transamerica Capital Growth I | TFOIX | Large Cap Growth Equities | 28.56% | 0.94% | 57.80% | $756 | Technology |
Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
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Vanguard's patent on adding an ETF share class to mutual funds will expire...
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The industrials sector was this week’s top-performing area, up 1.74%, and up 10.66% on a year-to-date basis. This was led by companies like 3M Co. (MMM) and Boeing Co. (BA), which are both up 7.09% and 8.89% over the last one month, respectively.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International markets were mostly down for the week, with the exception of the MSCI Developed Index that had a slight increase of 0.03%. The MSCI Emerging Index had a larger decline of 1.41% for the week. Japan’s NIKKEI 225 had a decline again this week and is down 0.35% to close at 19,943.
Commodities – The commodity sector was also down across the board. Crude oil decreased $1.09 per barrel and closed at $44.74 per barrel. The price of gold decreased $15 per troy ounce to close at $1,254. Copper was also down for the week, declining $0.09 to close at $2.56.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields dropped this week, as the Fed raised rates 25 bps. The 2-year Treasury dropped 1 bps and the 10-year Treasury dropped 5 bps. The 30-year Treasury yield decreased 8 bps to 2.78%.
Municipal Bonds – Municipals remained relatively flat this week. The 2-year AAA-rated bonds increased 1 bps; the 10-year AAA-rated bonds decreased 1 bps, while the 30-year AAA-rated bonds remained unchanged. Municipal bond funds had its second week of inflows with $310 million. The largest credit spread among Treasury and muni bonds tightened to 50 bps for the 5-year securities.
Category | Top Subcategory | 1-Month Subcategory Return (%) | Top Subcategory Performer | Ticker | 1-Month Fund Return (%) | Performance Rationale |
---|---|---|---|---|---|---|
U.S. Equity Fund | Large Cap Value | 1.34% | Wells Fargo C&B Large Cap Value Admin | CBLLX | 3.81% | The fund's largest holding is Abbott Laboratories (ABT), which is up over 25% on a YTD basis. |
International Equity | Japan Equities | 2.20% | Hennessy Japan Institutional | HJPIX | 3.67% | The fund invests in Japanese companies, with its largest holding in Keyence Corp NPV (KYCCF), which is up over 28% YTD. |
Commodities | Broad Basket | -3.11% | Catalyst Hedged Commodity Strategy A | CFHAX | 0.64% | This fund was invested in short-term treasuries and has remained stable, while oil prices dropped. |
Taxable Bonds | Government Bonds | 3.88% | Vanguard Extended Duration Trs Idx Instl | VEDTX | 6.25% | Bonds with longer maturities are increasing more in value than shorter-term bonds. |
Municipal Bonds | Single State Municipal Bonds | 1.40% | Nuveen CA High Yield Municipal Bond I | NCHRX | 2.26% | With muni yields remaining relatively flat, California muni bond funds showed slight gains. |
The fund’s largest holding is in Housing Development Finance Corp Ltd (NSE:HDFC), which is up over 29% 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 16, 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 | 34.88% | 2.00% | 35.00% | $182 | Financial Services |
Morgan Stanley Inst International Opp I | MIOIX | Foreign Large Cap Growth Equities | 29.20% | 1.34% | 50.50% | $196 | Consumer Defense |
Baron Partners Institutional | BPTIX | Mid Cap Growth Equities | 28.75% | 1.52% | 97.60% | $1,990 | Consumer Cyclical |
T. Rowe Price Global Technology | PRGTX | Global Equities | 28.67% | 0.90% | 54.60% | $4,890 | Technology |
Transamerica Capital Growth I | TFOIX | Large Cap Growth Equities | 28.56% | 0.94% | 57.80% | $756 | 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...