- U.S. equities were all up while international equities were all mixed this week.
- The best-performing fund for 2018 on a year-to-date basis is Leland Thomson Reuters Vntr Cptl Idx I (LDVIX).
- Government Bonds 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 healthcare, up 3.30% for the week and is up 5.03% on a year-to-date basis. This sector consists of companies like UnitedHealth Group Inc (NYSE:UNH), which was up 2.50% for the week and up over 15.06% on a year-to-date basis.
International Equities – The international markets were mostly down this week, with the exception of MSCI Developed Market Index, which gained 0.57% to close at 1,970. The MSCI Emerging Market Index fell 0.68% to close at 1,060. Finally, Japan’s Nikkei 225 saw a loss of 2.17% to close at 21,788.
Commodities – The commodities markets were mixed this week, with crude oil gaining $0.35 per barrel to close at $73.80. The price of gold increased by $7 per troy ounce to close at $1,254. Meanwhile, copper prices saw a decrease of $0.15 and now trades at $2.82.
Be sure to read important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields were mostly mixed this week. The 2-year Treasury decreased by 2 bps to now yield 2.50%. The 10-year Treasury yield increased 2 bps and now yields 2.88%. The 30-year Treasury decreased 6 bps to yield 2.93%.
Municipal Bonds – Municipal yields were also mostly down this week, with the exception of the 2-year AAA-rated bonds that remain unchanged and continue to yield 1.65%. The 10-year AAA-rated bonds saw a decrease of 1 bps, while the 30-year AAA-rated bonds decreased by 2 bps, to now yield 2.98%. Municipal bond fund flows saw outflows of $175 million after four weeks of inflows. The largest credit spread for the two-year securities decreased to 85 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||0.84%||Conestoga Small Cap Institutional||CCALX||4.55%||The fund's largest holding is Neogen Corp (NASDAQ:NEOG), which is up over 35% on a year-to-date basis.|
|International Equity||World Large Stock||-1.53%||Federated Global Strategic Value Div R6||GVDLX||3.67%||The fund's largest holdings are Verizon Communications Inc (NYSE:VZ) and AT&T Inc (NYSE:T), which were up over 1.5% for the week.|
|Commodities||Broad Basket||-3.84%||Rydex Commodities Strategy A||RYMEX||1.57%||With commodities and bond prices falling this week, this fund was protected since it had over 89% in cash.|
|Taxable Bonds||Government Bonds||2.35%||Vanguard Extended Duration Trs Idx Instl||VEDTX||3.37%||With longer-term bond yields mostly falling this week, longer-term bonds saw largest gains in price.|
|Municipal Bonds||High Yield Muni||0.55%||Oppenheimer Rochester Shrt Dur HY Muni Y||OPIYX||2.23%||High-yield bond funds saw the largest increase in price.|
Performance Snapshot: Top Fund
One of the fund’s largest holdings is Netflix Inc (NASDAQ:NFLX), which is up over 112% on a year-to-date basis.
The following table provides the top-performing mutual funds on a YTD basis as of July 6, 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||29.12%||1.74%||28.10%||$72||Technology|
|Alger Small Cap Focus Z||AGOZX||Small Cap Growth Equities||28.73%||0.90%||32.10%||$1,140||Technology|
|Wasatch Ultra Growth||WAMCX||Small Cap Growth Equities||26.72%||1.30%||23.20%||$182||Technology|
|ClearBridge Select IS||LCSSX||Mid Cap Growth Equities||25.91%||2.02%||23.70%||$126||Technology|
|Morgan Stanley Multi Cap Growth I||CPODX||Large Cap Growth Equities||25.08%||0.95%||54.00%||$727||Technology|
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