- The Dow Jones Industrial Average (DJIA) again finished out the week with a new all-time high, closing at 21,395.
- The best-performing fund so far for 2017 is the Wasatch Emerging India Institutional (WIINX).
- Government bonds are 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.
Market Wrap-Up
The healthcare sector was this week’s top-performing area, up 3.65%, and up 17.87% on a year-to-date basis. This was led by companies like Pfizer Inc (PFE) and Merck Co. (MRK), which are both up 3.64% and 5.07% over the last week, respectively.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International markets were positive for the week, with the exception of the MSCI Developed Index that had a slight decrease of 0.17%. The MSCI Emerging Index had a larger increase of 0.99% for the week. Japan’s NIKKEI 225 reversed its downward trend to gain 0.95% for the week and closed at 20,133.
Commodities – The commodity sector was up besides crude oil. Crude oil decreased $1.73 per barrel and closed at $43.01 per barrel. The price of gold increased $2 per troy ounce to close at $1,256. Copper was also up for the week, increasing $0.06 to close at $2.62.
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 besides the 2-year Treasury, which increased 2 bps. The 10-year Treasury dropped 1 bps while the 30-year Treasury yield decreased 6 bps to 2.72%.
Municipal Bonds – Municipals showed little movement this week. The 2-year AAA-rated bonds remained unchanged; the 10-year AAA-rated bonds decreased 1 bps, while the 30-year AAA-rated bonds decreased 2 bps. Municipal bond funds had a large outflow of $947 million after seeing two consecutive weeks of inflows. The largest credit spread among Treasury and muni bonds increased to 52 bps for the 5-year securities.
In this context, you can also read about essential tax tips for mutual funds, so that 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 | 1-Month Fund Return (%) | Performance Rationale |
|---|---|---|---|---|---|---|
| U.S. Equity Fund | Small Cap Growth | 3.09% | Baron Discovery Institutional | BDFIX | 7.39% | The fund's largest holding is Qualys Inc (NASADQ:QLYS), which is up over 30% on a YTD basis. |
| International Equity | China Equities | 3.48% | US Global Investors China Region Inv | USCOX | 6.34% | The fund invests in Chinese companies, with its largest holding in Geely Automobile Holdings Ltd (HKG:0175), which is up almost 120% YTD. |
| Commodities | Broad Basket | -6.34% | Catalyst Hedged Commodity Strategy A | CFHAX | 0.46% | This fund was invested in short-term treasuries and has remained stable while oil prices dropped. |
| Taxable Bonds | Government Bonds | 4.04% | Vanguard Extended Duration Trs Idx InsPl | VEDIX | 6.89% | Bonds with longer maturities are increasing more in value than shorter-term bonds. |
| Municipal Bonds | Single State Municipal Bonds | 0.83% | Nuveen CA High Yield Municipal Bond I | NCHRX | 1.41% | 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 23, 2017. Only those funds that are rated five stars by Morningstar and that generated YTD returns greater than or 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 | 33.89% | 2.00% | 35.00% | $182 | Financial Services |
| Neuberger Berman Greater China Eq Instl | NCEIX | China Equities | 32.99% | 1.76% | 50.10% | $95 | Financial Services |
| T. Rowe Price Global Technology | PRGTX | Global Equities | 32.38% | 0.90% | 54.60% | $4,890 | Technology |
| Transamerica Capital Growth I | TFOIX | Large Cap Growth Equities | 32.32% | 0.94% | 57.80% | $756 | Technology |
| Morgan Stanley Inst International Opp I | MIOIX | Foreign Large Cap Growth Equities | 31.88% | 1.34% | 50.50% | $196 | Consumer Defense |