- The Dow Jones Industrial Average closes at new all-time high of 21,830.
- The best-performing fund so far for 2017 continues to be the Neuberger Berman Greater China Eq Instl (NCEIX).
- Latin America Equities is the best-performing mutual fund subcategory based on a rolling month.
- Make sure to check out the previous edition of the Weekly Roundup to keep track of changing trends in the mutual funds space.
The telecommunications sector was this week’s top-performing area, up a huge 6.99%. However, the index is still down 5.44% on a year-to-date basis. The telecommunications sector is up big thanks to the two largest companies in the sector, AT&T Inc. (T) and Verizon Communications (VZ), which are both up 6.96% and 10.92%, respectively, for the last five days due to beating analysts’ expectations for the second quarter.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International markets showed minimal gains for the week except for the Nikkei. The MSCI Developed Index had an increase of 0.23%. The MSCI Emerging Index also had a slight increase, up 0.29% for the week. The MSCI Emerging Market Index remains the best-performing index on a year-to-date basis, moving up 25.37%. On the other hand, Japan’s Nikkei 225 saw another decline of 0.70% for the week, closing at 19,960.
Commodities – The commodity sector had big gains for the week. Crude oil had an increase of $3.94 per barrel and closed at $49.71 per barrel. The price of gold increased $14 per troy ounce to close at $1,268. Copper was also up for the week, increasing by $0.15 to close at $2.88.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields all increased this week thanks to the Fed maintaining interest rates at current levels. The 2-year Treasury increased 1 bps to 1.35%. The 10-year Treasury yield had an increase of 5 bps, while the 30-year Treasury yield increased 9 bps to 2.90%.
Municipal Bonds – Municipal yields also increased this week. The 2-year AAA-rated bonds increased 1 bps and the 10-year AAA-rated bonds increased 3 bps. The 30-year AAA-rated bond increased 5 bps and is now yielding 2.76%. Municipal bond funds saw inflows for the second week, pulling in $199 million. The largest credit spread among Treasury and muni bonds increased by 2 bps to 57 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||1.91%||Value Line Larger Companies Focused Inv||VALLX||4.86%||The fund's largest holding is Facebook Inc (FB), which is up over 46% YTD and over 11% for the trailing one-month.|
|International Equity||Latin America Equities||8.76%||Fidelity® Advisor Latin America I||FLFIX||9.37%||The fund invests in Latin American companies. Its largest holding, Itau Unibanco Holding SA (ITUB), is up almost 12% for the last rolling one-month.|
|Commodities||Broad Basket||4.58%||AQR Risk-Balanced Commodities Strat R6||QRCRX||7.85%||The fund is currently invested heavily in precious metals, which have performed well in the last month.|
|Taxable Bonds||Emerging Mkts Local Currency Bonds||1.62%||Barings Emerging Markets Local Ccy Dbt Y||BXLYX||2.93%||With global bond yields gaining last week, emerging market bonds witnessed modest gains.|
|Municipal Bonds||High Yield Muni||0.53%||Victory High Income Municipal Bond Y||RHMYX||1.02%||With muni bond yields increasing, high yield saw the least amount of declines.|
Performance Snapshot: Top Fund
The fund’s largest holding is in Tencent Holdings Ltd (HKG:0700), which is up over 65% on a year-to-date basis and over 10% for the trailing one-month.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis as of July 28, 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|
|Neuberger Berman Greater China Eq Instl||NCEIX||China Equities||42.47%||1.76%||50.10%||$104||Financial Services|
|Wasatch Emerging India Institutional||WIINX||India Equities||39.87%||2.00%||35.00%||$200||Financial Services|
|Morgan Stanley Inst International Opp IS||MNOPX||Foreign Large Cap Growth Equities||38.78%||5.64%||50.50%||$230||Consumer Defense|
|Matthews Asia Innovators Institutional||MITEX||Pacific/Asia ex-Japan Stk||36.88%||1.01%||33.30%||$149||Technology|
|Morgan Stanley Inst Global Opp I||MGGIX||Global Equities||35.37%||1.07%||55.80%||$1,130||Technology|
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