- U.S. equities and international equities were all up 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 telecommunications, up 3.36% for the week, but it still remains negative on a year-to-date basis, down 7.12%. This sector consists of companies like AT&T Inc (NYSE:T), which was up 5.46% for the week.
International Equities – The international markets were also up this week, with the MSCI Developed Market Index gaining 0.96% to close at 2,010. The MSCI Emerging Market Index gained 0.54% to close at 1,135. Finally, Japan’s Nikkei 225 also saw a large gain of 2.36% to close at 22,695.
Commodities – The commodities markets were mostly up this week, with the exception of crude oil, which fell $0.07 per barrel to close at $65.74. The price of gold increased by $3 per troy ounce to close at $1,298. Copper prices saw an increase of $0.20 and now trades at $3.30.
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 3 bps to now yield 2.50%. The 10-year Treasury yield increased 5 bps and now yields 2.95%. The 30-year Treasury increased 4 bps to yield 3.09%.
Municipal Bonds – Municipal yields were all up this week, with the exception of 2-year AAA-rated bonds, which fell by 10 bps to yield 1.67%. The 10-year AAA-rated bonds saw an increase of 1 bps, while the 30-year AAA-rated bonds also increased by 5 bps, to now yield 3.03%. Municipal bond fund flows turned positive this week, as inflows stood at $74 million. The largest credit spread for the five-year securities increased to 78 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||6.25%||Nysa||NYSAX||15.09%||The fund's largest holding is Ligand Pharmaceuticals Inc (NASDAQ:LGND), which is up over 43% on a year-to-date basis.|
|International Equity||China Equities||2.53%||Matthews China Small Companies||MCSMX||8.48%||The fund invests in China, which saw gains this week.|
|Commodities||Broad Basket||0.79%||DoubleLine Strategic Commodity I||DBCMX||3.29%||With commodities and bond prices increasing this week, this fund benefitted by remaining invested in both.|
|Taxable Bonds||Long Government||0.87%||PIMCO Extended Duration I2||PEDPX||1.21%||With yields rising across the board, long duration government bonds managed to perform relatively better.|
|Municipal Bonds||High Yield Muni||0.60%||Oppenheimer Rochester Shrt Dur HY Muni C||OITCX||2.14%||High-yield bond funds saw the largest increase in price.|
Performance Snapshot: Top Fund
One of the fund’s largest holdings is Adobe Systems Inc (NASDAQ:ADBE), which is up over 43% on a year-to-date basis.
The following table provides the top-performing mutual funds on a YTD basis as of June 8, 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||27.68%||1.74%||29.20%||$60||Technology|
|Alger Small Cap Focus Z||AGOZX||Small Cap Growth Equities||26.61%||0.90%||31.90%||$1,140||Technology|
|ClearBridge Select IS||LCSSX||Mid Cap Growth Equities||23.60%||2.02%||23.60%||$98||Technology|
|Virtus KAR Small-Cap Growth I||PXSGX||Small Cap Growth Equities||23.29%||1.25%||49.10%||$3,670||Technology|
|Morgan Stanley Multi Cap Growth I||CPODX||Large Cap Growth Equities||22.83%||0.95%||54.00%||$637||Technology|