- U.S. equities were up, while international equities were down this week.
- The best-performing fund for 2018 on a year-to-date basis is Leland Thomson Reuters Venture Capital Index Fund (LDVIX).
- Small cap growth 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 utilities, up 3.11% for the week, but it still remains negative on a year-to-date basis, down 3.36%. This sector consists of companies like NextEra Energy Inc (NYSE:NEE), which was up 3.82% for the week.
International Equities – The international markets were all down this week, with the MSCI Developed Market Index falling 1.51% to close at 2,015. The MSCI Emerging Market Index fell 0.01% to close at 1,137. Finally, Japan’s Nikkei 225 saw this week’s biggest decline with a 2.09% drop to close at 22,451.
Commodities – The commodities markets were all up this week, with the exception of crude oil, which fell $3.40 per barrel to close at $67.88 The price of gold increased by $13 per troy ounce to close at $1,303. Copper prices also increased by $0.01 to close at $3.08.
Be sure to read important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields were down this week, with the 2-year Treasury decreasing by 7 bps to now yield 2.48%. The 10-year Treasury yield saw this week’s largest decline of 13 bps and now yields 2.93%. The 30-year Treasury decreased 11 bps to yield 3.09%.
Municipal Bonds – Municipal yields were all also down this week, with the 2-year AAA-rated bonds decreasing by 4 bps to yield 1.82%. The 10-year AAA-rated bonds saw a decrease of 4 bps, while the 30-year AAA-rated bonds also decreased by 10 bps, to now yield 3.03%. Municipal bond funds saw its third week of inflows, with an increase of $128 million in assets under management. The largest credit spread for the five-year securities decreased to 70 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||5.82%||Nysa||NYSAX||12.60%||The fund’s largest holding is Ligand Pharmaceuticals Inc.(NASDAQ:LGND), which is up over 38% on a year-to-date basis.|
|International Equity||China Equities||2.94%||Oberweis China Opportunities||OBCHX||8.09%||The fund invests in China, which saw gains this week.|
|Commodities||Broad Basket||2.09%||Direxion Indexed Cmdty Strategy A||DXCTX||3.82%||With commodities and bond prices increasing this week, this fund was invested in both.|
|Taxable Bonds||Long Government||2.19%||PIMCO Extended Duration Instl||PEDIX||3.33%||With yields falling across the board this week, government bonds witnessed the maximum gains.|
|Municipal Bonds||Single State Muni Bonds||1.19%||Nuveen CA High Yield Municipal Bond I||NCHRX||1.72%||High-yield munis saw the largest price increase amid falling yields.|
Performance Snapshot: Top Fund
One of the fund’s largest holdings is Adobe Systems Inc (NASDAQ:ADBE), which is up over 38% on a year-to-date basis.
The following table provides the top-performing mutual funds on a YTD basis as of May 25, 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 Blend Equities||21.93%||1.74%||29.00%||$46||Technology|
|Virtus KAR Small-Cap Growth I||PXSGX||Small Cap Growth Equities||18.28%||1.25%||49.50%||$2,920||Technology|
|ClearBridge Select IS||LCSSX||Mid Cap Growth Equities||18.16%||2.02%||23.60%||$59||Technology|
|Morgan Stanley Multi Cap Growth I||CPODX||Large Cap Growth Equities||16.97%||0.95%||54.00%||$527||Technology|
|Nationwide Small Company Growth A||NWSAX||Small Cap Growth Equities||16.89%||1.33%||44.50%||$273||Technology|
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