- U.S. equities all saw gains for the second week in a row.
- The best-performing fund for 2018 on a year-to-date basis is the Leland Thomson Reuters Vntr Cptl Idx I (LDVIX).
- Latin American Equities is the best-performing mutual funds sub-category based on the rolling-month returns.
- Make sure to check out the previous edition of the Weekly Roundup to keep track of changing trends in the mutual funds space.
This week’s best-performing sector again for the second week in a row is information technology, which was up 1.72%. This sector consists of companies like Apple Inc (NASDAQ:AAPL), which was up 3.79% for the week.
International Equities – International markets were up this week, with the exception of the MSCI Developed Market Index that fell 0.44%, to close at 2,065. The MSCI Emerging Market Index had an increase of 1.42%, to close at 1,216. Japan’s Nikkei 225 also gained this week by 1.99%, to close at 21,893.
Commodities – The commodities markets were mixed this week, with crude oil increasing by $2.21 per barrel to close at $63.55. The price of gold fell $24 per troy ounce, to close at $1,328. Copper also decreased by $0.03, to close at $3.21.
Taxable Bonds – Treasury yields were up this week, with the exception of the 10-year Treasury. The 2-Year Treasury gained 5 bps to yield 2.24%. The 10-year Treasury yield remained unchanged and yields 2.87%. The 30-year Treasury yield increased by 3 bps and now yields 3.16%.
Municipal Bonds – Municipal yields were mixed this week, with the 2-year AAA-rated bonds, dropping 1 bps to yield 1.54%. The 10-year AAA-rated bonds saw no change, while the 30-year AAA-rated bonds saw an increase of 1 bps to yield 3.08%. Municipal bond funds returned back to inflows and saw an increase of $366 million in assets this week. The largest credit spread for the five-year securities decreased to 65 bps for the week.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
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||MTD Subcategory Return (%)||Top Subcategory Performer||Top Subcategory Performer||MTD Fund Return (%)||Performance Rationale|
|U.S. Equity Fund||Large Cap Growth Equities||-2.97%||Zevenbergen Genea Institutional||ZVGIX||3.28%||The fund's largest holding is Amazon.com Inc. (NYSE: AMZN), which is up over 28% YTD.|
|International Equity||Latin America Equities||2.76%||Fidelity Advisor® Latin America I||FLFIX||4.08%||The fund's second largest holding is Itau Unibanco Holding SA (NYSE:ITUB) which is up over 25% YTD.|
|Commodities||Broad Basket||-0.56%||Credit Suisse Commodity Acss Strat A||CFHAX||3.75%||With oil seeing big gains this week, the fund benefited by being invested 19% oil.|
|Taxable Bonds||Emerging-Markets Taxable||0.44%||Guinness Atkinson Renminbi Yuan & Bond||GARBX||1.31%||With global interest rates increasing, Chinese bonds saw the biggest gains.|
|Municipal Bonds||Short Muni||-0.20%||Fidelity Flex Cnsrv Inc Muni Bd||FUEMX||0.22%||With short term yields falling this week, short term muni bond prices increased|
Performance Snapshot: Top Fund
The fund’s largest holding is MasterCard Inc. (NYSE:MA), which is up over 16% on a year-to-date basis.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis as of February 23, 2018. 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|
|Leland Thomson Reuters Vntr Cptl Idx I||LDVIX||Large Blend||15.04%||1.74%||28.7%||$ 29||Technology|
|Prudential Jennison Focused Growth Z||SPFZX||Large Cap Growth Equities||12.46%||1.18%||47.0%||$ 441||Technology|
|Transamerica Capital Growth I||TFOIX||Large Cap Growth Equities||11.09%||0.96%||54.2%||$ 883||Technology|
|Morgan Stanley Inst Growth I||MSEQX||Large Cap Growth Equities||11.03%||0.63%||51.3%||$ 4,610||Technology|
|Neuberger Berman Greater China Eq Instl||NCEIX||China Equities||11.01%||1.69%||52.5%||$ 146||Financial Services|
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