- U.S. equities were all up again for the fifth week in a row, with the Dow Jones Industrial Average, S&P 500 and NASDAQ Composite hitting all-time highs again.
- The best-performing fund so far for 2017 continues to be the Neuberger Berman Greater China Eq Instl (NCEIX).
- India stock is the best-performing mutual funds 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 information technology sector was this week’s top-performing sector, up 2.87%. The technology sector consists of companies like Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT), which were up 6.75% and 6.45%, respectively, over the last week.
Explore our Mutual Funds Education section to learn more about important mutual funds concepts.
International Equities – International markets were down for the week, with the exception of the Nikkei. The MSCI Developed Index fell 0.34% to close at 1,991 and is up 21.57% on a year-to-date basis. The MSCI Emerging Index had a decrease of 0.84% for the week and remains the best-performing index on a year-to-date basis, up 31.57%. Japan’s Nikkei 225 had its seventh week of gains in a row, up 2.57%, to close at 22,008.
Commodities – The commodity sector was mostly down this week except for crude oil, which saw a gain $2.43 per barrel and closed at $53.90 per barrel. The price of gold decreased $9 per troy ounce, to close at $1,269. Copper also saw a decrease of $0.06, to close at $3.10.
Be sure to read important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields saw a modest uptick this week, with the 2-year Treasury increasing 1 bps to yield 1.59%. The 10-year Treasury yield increased 2 bps, while the 30-year Treasury yield increased 3 bps to 2.92%.
Municipal Bonds – Municipal yields saw large gains across all maturities this week with the 2-year AAA-rated bonds increasing 5 bps to yield 1.09%. The 10-year AAA-rated bonds increased 7 bps, while the 30-year AAA-rated bonds increased 9 bps and now yield 2.90%. Municipal bond funds saw a second week of inflows, increasing $111 million in assets. The largest credit spread for the five-year securities decreased by 6 bps to settle at 58 bps for the week.
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 Growth||3.64%||Quantified STF Investor||QSTFX||9.33%||The fund was invested in 2x the NASDAQ index, which was up big for the week.|
|International Equity||India Stock||7.46%||Eaton Vance Greater India A||ETGIX||6.41%||The largest holding is Maruti Suzuki India Ltd (BOM:532500), which is up over 3.5% for the trailing month.|
|Commodities||Broad Basket||1.70%||DoubleLine Strategic Commodity N||DLCMX||5.18%||With oil up this week, this fund was invested in 26% oil.|
|Taxable Bonds||Bank Loan||0.60%||Catalyst/Princeton Floating Rt Inc A||CFRAX||1.16%||With bond prices falling again this week, floating rate funds were the least affected.|
|Municipal Bonds||Muni California Long||0.09%||Nuveen CA High Yield Municipal Bond C2||NCHCX||0.59%||With muni bond yields gaining this week, high yield bonds had the largest gains.|
Performance Snapshot: Top Fund
The fund’s largest holding is in Tencent Holdings Ltd (HKG:0700), which is up over 84% on a year-to-date basis.
The following table provides the top-performing mutual funds on a YTD basis as of October 27, 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.
|Name||Ticker||Category||YTD %||Net Expense Ratio||% of Assets in Top 10 Holdings||Total Assets $ (Millions)||Top Sector Invested|
|Neuberger Berman Greater China Eq Instl||NCEIX||China Equities||57.90%||1.76%||51.80%||$134||Financial Services|
|Morgan Stanley Inst International Opp IS||MNOPX||Foreign Large Cap Growth Equities||47.12%||5.64%||46.60%||$423||Consumer Defense|
|T. Rowe Price Global Technology Fund I Class||PGTIX||Technology Equities||46.11%||0.77%||55.40%||$5,700||Technology|
|Matthews China Small Companies||MCSMX||China Equities||45.31%||2.24%||34.10%||$26||Technology|
|Baillie Gifford EAFE 5||BGEVX||Technology Equities||44.11%||0.46%||43.20%||$2,880||Consumer Cyclical|
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