- Both the U.S. equity and international markets were down for the week.
- 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 the 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 consumer staples sector was this week’s only positive sector and top-performing area, up 0.13%. The sector remained stable while all the other sectors declined thanks to companies like Proctor and Gamble Company (PG), which was up 0.74% for the week.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International markets also declined for the week, with the MSCI Developed Index decreasing of 1.48%. The MSCI Emerging Index also had a decrease, down 2.24% for the week. However, the MSCI Emerging Market Index remains the best-performing index on a year-to-date basis, moving up 23.13%. Japan’s Nikkei 225 saw another week of decline, dropping 1.12% to close at 19,730.
Commodities – The commodity sector increased apart from crude oil, which declined $0.76 per barrel and closed at $48.82 per barrel. The price of gold increased $29 per troy ounce to close at $1,288. Copper was also up slightly for the week, increasing by $0.03 to close at $2.91.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields decreased across all maturities with the 2-year Treasury, which dropped 6 bps to yield 1.29% this week. The 10-year Treasury yield had a decline of 7 bps, while the 30-year Treasury yield decreased 5 bps to 2.79%.
Municipal Bonds – Similar to Treasury yields, municipal yields all decreased this week except the 30-year bonds. The 2-year AAA-rated bonds decreased 7 bps. The 10-year AAA-rated bonds dropped 1 bps, while the 30-year AAA-rated bond stayed flat and yields 2.73%. Municipal bond funds saw inflows for the fourth week, pulling in $471 million. The largest credit spread among Treasury and muni bonds decreased by 2 bps to 56 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||Large Cap Growth||0.72%||Kinetics Internet No Load||WWWFX||6.23%||The fund invests in internet-based companies like Alphabet, Inc. (GOOG), which is up over 17% YTD.|
|International Equity||Latin America Equities||6.21%||T. Rowe Price Latin America||PRLAX||6.19%||The fund invests in Latin American companies. For instance, its largest holding, Itau Unibanco Holding SA (ITUB) is up over 20% year-to-date.|
|Commodities||Broad Basket||1.82%||Credit Suisse Commodity Acss Strat A||CRCAX||5.53%||This fund benefited by investing in metals, which were positive this week, yet has little exposure to oil, which was slightly down.|
|Taxable Bonds||Government Bonds||2.81%||Vanguard Extended Duration Trs Idx Instl||VEDTX||3.91%||The fund invests in long-term bonds, which saw a significant movement with bond yields dropping.|
|Municipal Bonds||High Yield Muni||1.29%||Nuveen CA High Yield Municipal Bond I||NCHRX||1.82%||With muni bonds yields declining, high-yield bonds saw the biggest gains in price.|
Performance Snapshot: Top Fund
The fund’s largest holding is in Tencent Holdings Ltd (HKG:0700), which is up almost 70% on a year-to-date basis and around 12% for the trailing one-month.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis as of August 11, 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||40.06%||1.76%||50.10%||$104||Financial Services|
|Morgan Stanley Inst International Opp IS||MNOPX||Foreign Large Cap Growth Equities||37.71%||5.64%||50.50%||$230||Consumer Defense|
|Wasatch Emerging India Institutional||WIINX||India Equities||34.55%||2.00%||35.00%||$200||Financial Services|
|Morgan Stanley Inst Global Opp IS||MGTSX||Global Equities||33.68%||3.82%||55.80%||$1,130||Technology|
|Matthews Asia Innovators Institutional||MITEX||Pacific/Asia ex-Japan Stk||32.64%||1.01%||33.30%||$149||Technology|