- U.S. and international equities and commodities were mostly down this week.
- The best-performing fund for 2018 on a year-to-date basis is Leland Thomson Reuters Venture Capital Index Fund (LDVIX).
- China Equities is the best-performing mutual funds subcategory based on 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 industry.
The best-performing sector was energy, up 1.73% for the week, and remains the second best-performing sector on a year-to-date basis, up 8.98%. This sector consists of companies like Exxon Mobil Corp (NYSE:XOM), which was up 0.55% for the week.
International Equities – The international markets were also up this week, with the exception of the Nikkei 225. The MSCI Developed Market Index is down 0.45% to close at 2,047. The MSCI Emerging Market Index fell 2.25% to close at 1,138. Finally, Japan’s Nikkei 225 was the only major foreign equity market that increased this week, gaining 0.76%, to close at 22,930.
Commodities – The commodities markets were all down this week, with the exception of crude oil that gained $0.58 per barrel to close at $71.28. The price of gold decreased by $29 per troy ounce to close at $1,290. Copper prices also decreased by $0.05 to close at $3.06.
Be sure to read important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields were up this week, with the 2-year Treasury increasing by 2 bps to now yield 2.55%. The 10-year Treasury yield saw this week’s largest gain of 18 bps and now yields 3.06%. The 30-year Treasury increased 7 bps to yield 3.20%.
Municipal Bonds – Municipal yields were all up this week, with the 2-year AAA-rated bonds increasing by 1 bps to yield 1.86%. The 10-year AAA-rated bonds saw an increase of 10 bps, while the 30-year AAA-rated bonds also increased by 10 bps, to now yield 3.13%. Municipal bond funds saw its second week of inflows, with an increase of $318 million in assets under management. The largest credit spread for the five-year securities increased to 76 bps for the week.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
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 Equities||2.84%||Jacob Micro Cap Growth Institutional||JMIGX||8.83%||The fund's largest holding is Codexis Inc (NASDAQ:CDXS), which is up over 61% on a year-to-date basis.|
|International Equity||China Equities||2.96%||Oberweis China Opportunities||OBCHX||6.79%||The fund invests in China, which saw gains this week.|
|Commodities||Broad Basket||0.79%||Goldman Sachs Commodity Strategy R||GCCRX||3.67%||With bond prices increasing this week, this fund stood to benefit.|
|Taxable Bonds||Ultrashort Bond||0.19%||PIMCO Short-Term Instl||PTSHX||0.61%||With taxable bond yields rising this week, Ultrashort bonds managed to achieve marginal gains.|
|Municipal Bonds||High Yield Municipal Bonds||0.09%||MainStay MacKay High Yield Muncpl Bd I||MMHIX||0.77%||High-yield muni bond funds witnessed the largest gains this week in the middle of rising bond yields across the board.|
Performance Snapshot: Top Fund
One of the fund’s largest holdings is Adobe Systems Inc (NASDAQ:ADBE), which is up over 35% on a year-to-date basis.
The following table provides the top-performing mutual funds on a YTD basis as of May 18, 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 Cap Growth Equities||19.38%||1.74%||29.00%||$46||Technology|
|ClearBridge Select IS||LCSSX||Mid Cap Growth Equities||18.26%||2.02%||23.60%||$59||Technology|
|Virtus KAR Small-Cap Growth I||PXSGX||Small Cap Growth Equities||17.77%||1.25%||49.50%||$2,920||Technology|
|Nationwide Small Company Growth A||NWSAX||Small Cap Growth Equities||17.18%||1.33%||44.50%||$273||Technology|
|Brown Capital Mgmt Small Co Instl||BCSSX||Small Cap Growth Equities||16.66%||1.08%||49.40%||$4,660||Technology|
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