- U.S. equities finished mostly higher this week, while international equities were mostly lower.
- The best-performing fund on a year-to-date basis is the Alger Small Cap Focus Z (AGOZX), with a year-to-date return of 33.35%.
- U.S large-cap growth equities is the best-performing mutual funds subcategory based on rolling-month returns.
- Make sure to check out our previous edition to keep track of changing trends in the mutual funds industry.
The week’s best-performing sector was telecommunication services, gaining more than 3.7%. This sector consists of companies like Verizon Communications (VZ), which has gained 4.65% over the past five days.
International Equities – The international markets were down this week, with the MSCI Developed Market Index declining 1.10% to close at 1,928. The MSCI Emerging Market Index has declined 3.68% to close at 1,023. Finally, Japan’s Nikkei 225 jumped 1.56% to 22,199.
Commodities – The commodities markets were down across the board this week, with Brent crude oil falling 1.3% to close at $71.83 a barrel. The price of gold fell 2.2% to $1,184 a troy ounce. Meanwhile, copper prices fell 1.5% to $2.69.
Be sure to read important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – The main Treasury yields were virtually unchanged for the week. The 2-year, 10-year and 30-year U.S. Treasuries were flat week-on-week. The benchmark 10-year Treasury yield held at 2.87%.
Municipal Bonds – Municipal yields rose this week, with the 10-year AAA-rated bonds edging up 0.15 bps to 2.59%.
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||Large Cap Growth Equities||2.21%||Segall Bryant & Hamill Large Cap Div Instl||WILGX||5.03%||The fund's top holding is Lowe's Companies Inc. (NASDAQ:LOW), which is up 1.93%% for the week.|
|International Equity||World Large Stock||-0.69%||AA/HIMCO Global Enhanced Dividend I||WGRIX||3.07%||The fund's largest holding is Consolidated-Tomoka Land Co (NYSE:CTO), which up 7.5% for the rolling month.|
|Commodities||Broad Basket||-0.62%||SilverPepper Commodity Strats Glb Macro Adv||SPCAX||1.44%||With commodities and bond prices falling this week, this fund was protected since it had over 80% in cash.|
|Taxable Bonds||Long Government||1.09%||Vanguard Extended Duration Treasury Index||VEDIX||1.46%||Longer term bonds gained preference this week as investors went for their safe haven status|
|Municipal Bonds||High Yield Muni||0.34%||Oppenheimer Rochester Short Duration HI Muni A||OPITX||3.23%||This bond benefited from large holdings of state and local obligations.|
Performance Snapshot: Top Fund
This fund allocates 97.99% of its holdings to stocks, which are largely concentrated in the technology industry. The fund is also well diversified, with the biggest holding (Veeva Systems Inc. Class A) accounting for 3.43% of total assets.
The following table provides the top-performing mutual funds on a YTD basis as of August 20, 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|
|Alger Small Cap Focus Z||AGOZX||Small Cap Growth Equities||33.40%||0.90%||32.10%||$1.56||Technology|
|Leland Thomson Reuters Vntr Cptl Idx I||LDVIX||Large Cap Growth Equities||27.60%||1.74%||30.40%||$81||Technology|
|Wasatch Ultra Growth||WAMCX||Small Cap Growth Equities||27.60%||1.30%||22.70%||$208||Technology|
|ClearBridge Select IS||LCSSX||Mid Cap Growth Equities||27.00%||2.08%||24.60%||$140||Technology|
|Morgan Stanley Multi Cap Growth I||CPODX||Large Cap Growth Equities||25.80%||0.95%||53.80%||$758||Technology|
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