Mutual Funds Scorecard: May 13 Edition

Welcome to MutualFunds.com

Please help us personalize your experience and select the one that best describes you.

Your personalized experience is almost ready.

Join other Individual Investors receiving FREE personalized market updates and research. Join other Institutional Investors receiving FREE personalized market updates and research. Join other Financial Advisors receiving FREE personalized market updates and research.

Thank you!

Check your email and confirm your subscription to complete your personalized experience.

Thank you for your submission

We hope you enjoy your experience

Channels

Fixed income news, reports, video and more.

Municipal bonds news, reports, video and more.

Practice management news, reports, video and more.

Portfolio management news, reports, video and more.

Retirement news, reports, video and more.

Learn from industry thought leaders and expert market participants.

Find the latest content and information here about the 2019 Charles Schwab Impact Conference.

Advisors

Receive email updates about fund flows, news, upcoming CE accredited webcasts from industry thought leaders and more.

Content focused on helping financial advisors build successful client relationships and grow their business.

Content geared towards helping financial advisors build better client portfolios.

Get insights on the industry trends and investment news from leading fund managers and experts.

Mutual Funds Scorecard: May 13 Edition

2d stock market chart concept
Every fortnight, MutualFunds.com provides a snapshot of the performance of some key mutual funds which tries to accurately capture the investor interest in specific areas of the financial markets. The report is aimed at providing a quick overview of the sectors, regions and asset classes that moved in a meaningful manner during the last two weeks.
  • A host of countries in Europe, including Italy and Germany, has started to ease lockdown measures, triggering fears the number of daily COVID-19 cases will rise. Indeed, this is exactly what happened in Germany. There are now 4.2 million registered cases of coronavirus and a third of those are in the U.S., which has reported the most number of cases so far.
  • U.S. GDP in Q1 2020 declined by 4.8%, the highest decrease since the Global Financial Crisis of 2009. Since the U.S. economy was not in lockdown mode for most of Q1, it could mean the decline could be worse in Q2 2020.
  • The U.S. Federal Reserve is unlikely to consider negative interest rates to stimulate the U.S. economy. As such, it will not follow in the footsteps of the European Central Bank and Bank of Japan, two of the developed world’s central banks that have been keeping interest rates negative in desperate bids to spur inflation.
  • The build-up in crude oil inventories in the U.S. has eased over the past two weeks, with stockpiles rising by a combined 14 million barrels. Stockpiles have been increasing since January 23, as the COVID-19 pandemic curtailed demand for fuel.
  • Chinese manufacturing purchasing managers’ index (PMI) remained in expansion territory in April, at 50.8, falling from 52 in the prior month. This suggests optimism in the manufacturing industry is slowly picking up after a dramatic drop in February.
  • Eurozone GDP fell 3.8% in the first quarter, despite key countries such as Italy, France and Germany being closed for a good part of the quarter. French output dropped 5.8%, Spain’s declined 5.2% and Italy contracted by 4.7%.
  • The European Central Bank kept interest rates unchanged but decided to ease the conditions for banks to borrow money from its facilities. It will continue to buy government bonds as part of its monetary easing program to counter the economic effects of the COVID-19 pandemic worth 750 billion euros.
  • Europe-wide manufacturing PMI crashed to 33.4 in April from 44.5 in the prior month, as the lockdown measures dented sentiment in the region’s manufacturing industry. Not that the sentiment was great before the crisis – the PMI has been hovering in contraction territory since March 2019.
  • The rise in U.S. unemployment claims has eased over the past two weeks, with nearly 7 million people out of the job market. In the prior two-week period, around 10 million people filed for benefits in the U.S.
  • The U.S. unemployment rate surged to a record high of 14.7% in April and is likely to continue to rise over the next few months. The U.S. economy lost more than 20 million jobs over the past month. Those that managed to keep their job experienced a surprising rise in earnings, with average hourly earnings jumping by 4.7%. If this continues to rise, an uptick in inflation could be just around the corner.

Check our previous edition of the scorecard here.

U.S. Broad Indices

  • Markets continued to rally in the U.S., as investors were confident that the Federal Reserve and government measures would limit economic damage.
  • Vanguard’s small-cap index fund (VSCIX) gained 8.5% over the past two weeks, the best performer from the pack.
  • Meanwhile, the Vanguard’s S&P 500 proxy (VFIAX) added just 3.4% to its performance, making it the weakest of its peers.
broad indices

Fixed Income

  • Fixed income asset performance was mixed.
  • Vanguard’s long-term investment-grade bonds fund (VWESX) shed nearly 4% over the past two weeks, the biggest loss from the bunch.
  • At the same time, Vanguard’s high yield bonds fund (VWEHX) appreciated by 0.9% over the past two weeks, representing the best performance among major U.S. fixed income sub-asset classes.
fixed income

Major Sectors

  • Sectors were all up with two exceptions.
  • Fidelity’s utilities sector proxy (FKUQX) declined 2.80%, as investors rotated money out of safe-haven assets into riskier ones.
  • Unsurprisingly, the best performer is the Vanguard’s technology sector fund (VITAX), which advanced by 7.6%, as many technology companies benefited from the stay-at-home economy.
sectors

Foreign Equities

  • Foreign equities were all up.
  • Fidelity’s Latin American equities fund (FLATX) posted the best performance from the pack, up nearly 8%, after being the worst performer in the prior two-week period.
  • Matthews India equities fund (MINDX) recorded the weakest gain, up a little more than 3%.
foreign equities

Alternatives

  • Alternative assets were all up as well.
  • The PIMCO’s broad commodity fund (PCRIX) finally posted gains and has become the best performer from the pack with an advance of 4.7%.
  • Meanwhile, Cohen and Steers’ preferred stocks fund (CPXIX) gained only 1% and is the weakest performer.
alternatives

The Bottom Line

Investors have embraced risky assets over the past two weeks, thanks to stimulus measures implemented by the central banks across the world to counter the negative effects of the COVID-19 pandemic. Small-cap stocks, high-yield bonds and Latin American equities were among the best performers, while utility stocks and investment-grade bonds declined.

Be sure to sign up for your free newsletter here to receive the most relevant updates.

Fund returns data is reported for the period between April 24 and May 8.


Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.


Read Next

2d stock market chart concept

Mutual Funds Scorecard: May 13 Edition

Every fortnight, MutualFunds.com provides a snapshot of the performance of some key mutual funds which tries to accurately capture the investor interest in specific areas of the financial markets. The report is aimed at providing a quick overview of the sectors, regions and asset classes that moved in a meaningful manner during the last two weeks.
  • A host of countries in Europe, including Italy and Germany, has started to ease lockdown measures, triggering fears the number of daily COVID-19 cases will rise. Indeed, this is exactly what happened in Germany. There are now 4.2 million registered cases of coronavirus and a third of those are in the U.S., which has reported the most number of cases so far.
  • U.S. GDP in Q1 2020 declined by 4.8%, the highest decrease since the Global Financial Crisis of 2009. Since the U.S. economy was not in lockdown mode for most of Q1, it could mean the decline could be worse in Q2 2020.
  • The U.S. Federal Reserve is unlikely to consider negative interest rates to stimulate the U.S. economy. As such, it will not follow in the footsteps of the European Central Bank and Bank of Japan, two of the developed world’s central banks that have been keeping interest rates negative in desperate bids to spur inflation.
  • The build-up in crude oil inventories in the U.S. has eased over the past two weeks, with stockpiles rising by a combined 14 million barrels. Stockpiles have been increasing since January 23, as the COVID-19 pandemic curtailed demand for fuel.
  • Chinese manufacturing purchasing managers’ index (PMI) remained in expansion territory in April, at 50.8, falling from 52 in the prior month. This suggests optimism in the manufacturing industry is slowly picking up after a dramatic drop in February.
  • Eurozone GDP fell 3.8% in the first quarter, despite key countries such as Italy, France and Germany being closed for a good part of the quarter. French output dropped 5.8%, Spain’s declined 5.2% and Italy contracted by 4.7%.
  • The European Central Bank kept interest rates unchanged but decided to ease the conditions for banks to borrow money from its facilities. It will continue to buy government bonds as part of its monetary easing program to counter the economic effects of the COVID-19 pandemic worth 750 billion euros.
  • Europe-wide manufacturing PMI crashed to 33.4 in April from 44.5 in the prior month, as the lockdown measures dented sentiment in the region’s manufacturing industry. Not that the sentiment was great before the crisis – the PMI has been hovering in contraction territory since March 2019.
  • The rise in U.S. unemployment claims has eased over the past two weeks, with nearly 7 million people out of the job market. In the prior two-week period, around 10 million people filed for benefits in the U.S.
  • The U.S. unemployment rate surged to a record high of 14.7% in April and is likely to continue to rise over the next few months. The U.S. economy lost more than 20 million jobs over the past month. Those that managed to keep their job experienced a surprising rise in earnings, with average hourly earnings jumping by 4.7%. If this continues to rise, an uptick in inflation could be just around the corner.

Check our previous edition of the scorecard here.

U.S. Broad Indices

  • Markets continued to rally in the U.S., as investors were confident that the Federal Reserve and government measures would limit economic damage.
  • Vanguard’s small-cap index fund (VSCIX) gained 8.5% over the past two weeks, the best performer from the pack.
  • Meanwhile, the Vanguard’s S&P 500 proxy (VFIAX) added just 3.4% to its performance, making it the weakest of its peers.
broad indices

Fixed Income

  • Fixed income asset performance was mixed.
  • Vanguard’s long-term investment-grade bonds fund (VWESX) shed nearly 4% over the past two weeks, the biggest loss from the bunch.
  • At the same time, Vanguard’s high yield bonds fund (VWEHX) appreciated by 0.9% over the past two weeks, representing the best performance among major U.S. fixed income sub-asset classes.
fixed income

Major Sectors

  • Sectors were all up with two exceptions.
  • Fidelity’s utilities sector proxy (FKUQX) declined 2.80%, as investors rotated money out of safe-haven assets into riskier ones.
  • Unsurprisingly, the best performer is the Vanguard’s technology sector fund (VITAX), which advanced by 7.6%, as many technology companies benefited from the stay-at-home economy.
sectors

Foreign Equities

  • Foreign equities were all up.
  • Fidelity’s Latin American equities fund (FLATX) posted the best performance from the pack, up nearly 8%, after being the worst performer in the prior two-week period.
  • Matthews India equities fund (MINDX) recorded the weakest gain, up a little more than 3%.
foreign equities

Alternatives

  • Alternative assets were all up as well.
  • The PIMCO’s broad commodity fund (PCRIX) finally posted gains and has become the best performer from the pack with an advance of 4.7%.
  • Meanwhile, Cohen and Steers’ preferred stocks fund (CPXIX) gained only 1% and is the weakest performer.
alternatives

The Bottom Line

Investors have embraced risky assets over the past two weeks, thanks to stimulus measures implemented by the central banks across the world to counter the negative effects of the COVID-19 pandemic. Small-cap stocks, high-yield bonds and Latin American equities were among the best performers, while utility stocks and investment-grade bonds declined.

Be sure to sign up for your free newsletter here to receive the most relevant updates.

Fund returns data is reported for the period between April 24 and May 8.


Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.


Read Next