Every fortnight, MutualFunds.com provides a snapshot of the performance of some key mutual funds and ETFs to highlight the trending sectors, geographic regions, and asset classes. MutualFunds.com uses a system to automatically scan through thousands of relevant securities and, to ensure quality and adequate track record, places a minimum threshold on net assets ($1 billion for mutual funds and $500 million for ETFs). The best and worst performers are further discussed in the report along with key economic highlights from the past fortnight, reminding you to adjust your portfolios, if required.

The markets have continued to fall over the past fortnight, as expectations are high that the Federal Reserve will continue to increase interest rates aggressively due to a strong labor market and persistently high inflation. The blowup of Silicon Valley Bank (SVP) and fears of systemic contagion hit stock markets, especially banking stocks. Monday’s news that government agency FDIC will make all depositors whole appeared to have instilled some confidence in the markets, at least for now.

US Broad mostly includes funds focused on US equities and can cover different investing styles (growth/value) and market capitalizations (small/mid/large). Fixed Income includes funds focused on debt securities and can cover different geographies (US/foreign) and security types (corporate/municipal/high-yield/investment-grade/government/structured). Alternatives cover funds focused on non-traditional investment strategies (currency, hedge fund strategy, derivatives), leveraged/structured products, real estate, and commodities. Dividend funds focus on generating income via equities and not through debt.

 

U.S. Broad

All major indices in the U.S have been down, with large-caps falling less than their small-cap counterparts.

 

Top Performers

 

• Mutual Funds: American Funds Preservation Portfolio (PPFFX) , up 0.54%, and Kopernik Global All-Cap Fund (KGGIX), up 0.45%.

• ETFs: Invesco Dynamic Large Cap Growth ETF (PWB) , down -1.9%, and Schwab U.S. Large-Cap Growth ETF™ (SCHG), down -2.2%.

 

Worst Performers

• Mutual Funds: VALIC Company I Growth Fund (VCULX) , down -30.67%, and VALIC Company I Small Cap Index Fund (VCSLX), down -27.39%.

• ETFs: iShares Micro-Cap ETF (IWC) , down -7.17%, and iShares Russell 2000 Value ETF (IWN), down -7.15%.

 

Dividend

All dividend stocks were down this fortnight, with dividend growers among the worst performers. Quality dividend funds have posted the smallest losses.

 

Worst Performers

 

• Mutual Funds: VALIC Company I Dividend Value Fund (VCIGX) , down -21.14%, and Principal Small-MidCap Dividend Income Fund (PMDIX), down -6.37%.

• ETFs: Invesco S&P Ultra Dividend Revenue ETF (RDIV) , down -6.73%, and ProShares Russell 2000 Dividend Growers ETF (SMDV), down -6.33%.

 

Fixed Income

Long-term bonds have been the best performers from the pack, including Treasuries and inflation-protected securities. High-yield municipal bonds have dramatically underperformed.

 

Top Performers

 

• Mutual Funds: Vanguard Extended Duration Treasury Index Fund (VEDIX) , up 6.06%, and PIMCO Extended Duration Fund (PEDPX), up 5.91%.

• ETFs: iShares 20+ Year Treasury Bond ETF (TLT) , up 4.29%, and SPDR® Portfolio Long Term Treasury ETF (SPTL), up 3.87%.

 

Worst Performers

 

• Mutual Funds: BlackRock Dynamic High Income Portfolio (BDHAX) , down -1.99%, and Cohen & Steers Low Duration Preferred and Income Fund (LPXAX), down -1.85%.

• ETFs: VanEck Vectors High Yield Muni ETF (HYD) , down -20%, and ProShares UltraShort 20+ Year Treasury (TBT), down -8.64%.

 

Sector

Most sectors were down, but funds that shorted equities and took long positions in commodities like gold and oil have rallied.

 

Top Performers

 

• Mutual Funds: Stone Ridge High Yield Reinsurance Risk Premium Fund (SHRIX) , up 0.47%, and Sprott Gold Equity Fund (SGDLX), down -0.59%.

• ETFs: ProShares UltraPro Short QQQ (SQQQ) , up 5.52%, and Aberdeen Standard Gold ETF Trust (SGOL), up 2.93%.

 

Worst Performers

 

• Mutual Funds: VALIC Company I Blue Chip Growth Fund (VCBCX) , down -20.12%, and VALIC Company I Science & Technology Fund (VCSTX), down -19.81%.

• ETFs: Direxion Daily S&P Biotech Bull 3X Shares (LABU) , down -22.66%, and Direxion Daily Financial Bull 3X Shares (FAS), down -22.54%.

 

Foreign

Saudi Arabia, Japan, and India equities have rallied over the past two weeks, as investors perceived them as relatively safe. Meanwhile, Chinese equity-focused funds have underperformed.

 

Top Performers

 

• Mutual Funds: Matthews Japan Fund (MJFOX) , up 2.31%, and PIMCO RAE Emerging Markets Fund (PEIFX), up 1.4%.

• ETFs: iShares MSCI Saudi Arabia ETF (KSA) , up 3.57%, and WisdomTree India Earnings Fund (EPI), up 1.69%.

 

Worst Performers

 

• Mutual Funds: Matthews China Fund (MCHFX) , down -4.46%, and Fidelity® Series Canada Fund (FCNSX), down -4.16%.

• ETFs: iShares MSCI Sweden ETF (EWD) , down -6.11%, and SPDR® Dow Jones International Real Estate ETF (RWX), down -4.53%.

 

Alternatives

In alternatives, mortgage-backed securities have been among the best performers in mutual funds. In ETFs, volatility instruments have thrived as investors tried to capitalize on the increased volatility during the last fortnight.

 

Top Performers

 

• Mutual Funds: Columbia Mortgage Opportunities Fund (CLMAX) , up 1.36%.

• ETFs: ProShares Ultra VIX Short-Term Futures ETF (UVXY) , up 16.25%, and SPDR® DoubleLine Total Return Tactical ETF (TOTL), up 0.79%.

 

Worst Performers

 

• Mutual Funds: PIMCO Commodity Real Return Strategy Fund (PCRIX) , down -5.4%, and Janus Henderson Contrarian Fund (JCNCX), down -4.56%.

• ETFs: ETFMG Alternative Harvest ETF (MJ) , down -8.62%, and Invesco S&P SmallCap Low Volatility ETF (XSLV), down -6.9%.

 

ESG

The majority of ESG funds posted losses over the last fortnight.

 

Top Performers

• Mutual Funds: PIMCO Total Return ESG Fund (PTGCX) , up 0.93%, and Brown Advisory Sustainable Growth Fund (BAFWX), down -2.23%.

 

Worst Performers

 

• Mutual Funds: TIAA-CREF Social Choice Low Carbon Equity Fund (TPWCX) , down -4.25%, and TIAA-CREF Social Choice Equity Fund (TICRX), down -4.13%.

• ETFs: Xtrackers MSCI USA ESG Leaders Equity ETF (USSG) , down -3.52%, and iShares MSCI KLD 400 Social ETF (DSI), down -3.39%.

Among major economic data released during the last two weeks, this past fortnight has been driven less by data but rather by the news coming from the travails of Silicon Valley Bank (SVB), which experienced a classic bank run. Before the situation got worse, government-backed FDIC took over the company and promised to make all depositors whole, with equity holders wiped out.

Elsewhere, the news in the U.S. was mostly positive. The labor market added a forecast-beating 311,000 jobs in February, although average hourly earnings rose less than expected. Meanwhile, the unemployment rate rose to 3.6% as more people entered the job market.

European services purchasing managers’ index has continued to expand, now in positive territory for the second consecutive month. British services PMI jumped above 50 for the first time in five months. Britain’s GDP also surprised to the upside, rising 0.3% in January.

Fund performance data is calculated for the period between March 13, 2023 and March 27, 2023.