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.

Markets have staged a recovery over the past two weeks, as investors started to see a potential end-game to the Federal Reserve’s rate-hiking path. However, all the signs still indicate that the global economy is tipping toward recession.

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

Growth stocks have been among the best performers from the pack, outperforming large-caps and small-caps.

 

Top Performers

 

• Mutual Funds: Sands Capital Global Growth Fund (SCMGX) , up 7.79%, and Edgewood Growth Fund (EGFIX), up 7.35%.

• ETFs: iShares Core S&P U.S. Growth ETF (IUSG) , up 5.82%, and Fidelity® Nasdaq Composite Index® ETF (ONEQ), up 5.62%.

 

Worst Performers

 

• Mutual Funds: Parnassus Core Equity Fund (PRBLX) , down -4.27%, and Parnassus Mid Cap Fund (PARMX), down -0.38%.

• ETFs: Pacer Trendpilot™ US Large Cap ETF (PTLC) , up 0.13%, and iShares Micro-Cap ETF (IWC), up 0.25%.

 

Dividend

Dividend stocks have all posted gains over the past two weeks, with mutual funds tracking global equities among the best performers.

 

Top Performers

 

• Mutual Funds: BlackRock Global Dividend Portfolio (BIBDX) , up 5.27%, and Janus Henderson Global Equity Income Fund (HFQAX), up 4.84%.

• ETFs: First Trust Dow Jones Global Select Dividend Index Fund (FGD) , up 6.13%, and SPDR® S&P International Dividend ETF (DWX), up 6.09%.

 

Fixed Income

Long-term corporate bonds were by far the best performers, as bonds have rallied over the past fortnight. Funds that had short positions have been pummelled.

 

Top Performers

 

• Mutual Funds: PIMCO StocksPLUS® Long Duration Fund (PSLDX) , up 10.63%, and PIMCO Extended Duration Fund (PEDPX), up 9.57%.

• ETFs: SPDR® Portfolio Long Term Corporate Bond ETF (SPLB) , up 7.65%, and iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB), up 7.51%.

 

Worst Performers

 

• Mutual Funds: T. Rowe Price Dynamic Global Bond Fund (TRDZX) , down -1.34%, and Voya Securitized Credit Fund (VCFAX), down -1.14%.

• ETFs: ProShares UltraShort 20+ Year Treasury (TBT) , down -12.73%, and ProShares Short 20+ Year Treasury (TBF), down -6.52%.

 

Sector

Sectors were rather mixed. The tech-heavy Nasdaq recorded double-digit gains. Meanwhile, healthcare and energy equities were the worst performers.

 

Top Performers

 

• Mutual Funds: ProFunds UltraNASDAQ-100 Fund (UOPIX) , up 12.37%, and Rydex NASDAQ-100® 2x Strategy Fund (RYVLX), up 12.34%.

• ETFs: Direxion Daily Semiconductor Bull 3X Shares (SOXL) , up 30.24%, and Direxion Daily Technology Bull 3X Shares (TECL), up 20.95%.

 

Worst Performers

 

• Mutual Funds: Fidelity® Select Health Care Services Portfolio (FSHCX) , down -2.88%, and Fidelity® Select Energy Portfolio (FSENX), down -2.43%.

• ETFs: ProShares UltraPro Short QQQ (SQQQ) , down -20.52%, and ProShares Ultra Bloomberg Crude Oil (UCO), down -16.97%.

 

Foreign

Chinese and Taiwanese shares have been the best performers, as investors were encouraged by an apparent thaw in Sino-American diplomatic relations and China’s departure from its zero COVID-19 policy. At the other end of the spectrum were Latin American and Brazilian equities, among others.

 

Top Performers

 

• Mutual Funds: Fidelity® China Region Fund (FHKCX) , up 12.2%, and Baillie Gifford International Growth Fund (BGEUX), up 10.87%.

• ETFs: iShares MSCI Taiwan ETF (EWT) , up 12.45%, and EMQQ The Emerging Markets Internet & Ecommerce ETF (EMQQ), up 11.75%.

 

Worst Performers

 

• Mutual Funds: GQG Partners Emerging Markets Equity Fund (GQGIX) , down -0.3%, and PGIM Jennison Emerging Markets Equity Opportunities Fund (PDEZX), up 0.23%.

• ETFs: iShares MSCI Brazil ETF (EWZ) , down -8.93%, and iShares Latin America 40 ETF (ILF), down -5.82%.

 

Alternatives

Gold has been the best performer from alternative assets along with cannabis equities. Volatility instruments and managed futures have plunged.

 

Top Performers

 

• Mutual Funds: Fidelity® Select Gold Portfolio (FSAGX) , up 8.79%, and Mercer Global Low Volatility Equity Fund (MGLVX), up 4.48%.

• ETFs: ETFMG Alternative Harvest ETF (MJ) , up 8.81%, and SPDR® ICE Preferred Securities ETF (PSK), up 6.73%.

 

Worst Performers

 

• Mutual Funds: PIMCO TRENDS Managed Futures Strategy Fund (PQTIX) , down -6.8%, and Catalyst/Millburn Hedge Strategy Fund (MBXAX), down -5.48%.

• ETFs: ProShares Ultra VIX Short-Term Futures ETF (UVXY) , down -6.53%, and iShares S&P GSCI Commodity-Indexed Trust (GSG), down -6.09%.

 

ESG

After weeks of disappointing performance, ESG funds have finally posted solid gains. No major ESG fund lost value over the past two weeks.

 

Top Performers

 

• Mutual Funds: Brown Advisory Sustainable Growth Fund (BAFWX) , up 6.22%, and Vanguard FTSE Social Index Fund (VFTNX), up 4.83%.

• ETFs: iShares MSCI KLD 400 Social ETF (DSI) , up 4.67%, and Xtrackers S&P 500 ESG ETF (SNPE), up 4.3%.

Among major economic data released during the last two weeks, Chinese inflation declined abruptly in October, from 2.8% to 2.1%, a higher drop than analysts had expected.

U.S. crude oil inventories have been whipsawing, indicating balanced demand and supply. U.S. inflation also dropped in October, from 8.2% to 7.7%, suggesting that the Federal Reserve’s rate increases are working. However, inflation remains well above the Fed’s target of 2%. U.S. consumer sentiment worsened in November, hovering at levels previously indicating economic contraction.

U.K. GDP declined 0.6% month-over-month in September, indicating that the country is already in recession. The U.K. job market, meanwhile, remains strong, with wages rising about 6%. Inflation of 11.1% remains very high, although there are signs it may have peaked. Meanwhile, Germany’s economic sentiment has improved somewhat but remains deep in negative territory.

Fund performance data is calculated for the period between November 7 and November 21.