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 ended the year on a relatively sour note, with more funds posting losses than gains. Tech stocks continued to bleed during the last two weeks of 2022, while value shares have posted the best performance.

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

In the U.S., growth stocks have gotten clobbered, but value equities remained strong as investors were on the lookout for cheap companies with healthy profits.

 

Top Performers

 

• Mutual Funds: Brown Advisory Small-Cap Fundamental Value Fund (BAUAX) , up 1.98%, and Artisan Global Value Fund (APHGX), up 1.37%.

• ETFs: iShares S&P Mid-Cap 400 Value ETF (IJJ) , up 1.16%, and iShares Micro-Cap ETF (IWC), up 1.16%.

 

Worst Performers

 

• Mutual Funds: American Beacon Small Cap Value Fund (AVFIX) , down -14.32%, and AQR Large Cap Momentum Style Fund (AMOMX), down -9.93%.

• ETFs: Fidelity® Nasdaq Composite Index® ETF (ONEQ) , down -2.36%, and First Trust US Equity Opportunities ETF (FPX), down -2.16%.

 

Dividend

Dividend stocks recorded a pretty decent performance, as many of these companies fall in the category of value stocks.

 

Top Performers

 

• Mutual Funds: American Funds The Income Fund of America® (AMEFX) , up 0.22%, and Sterling Capital Equity Income Fund (BEGIX), up 0.08%.

• ETFs: iShares Core High Dividend ETF (HDV) , up 1.79%, and Invesco BuyBack Achievers ETF (PKW), up 1.31%.

 

Worst Performers

 

• Mutual Funds: American Century Equity Income Fund (AEURX) , down -5.93%, and Amana Mutual Funds Trust Income Fund (AMANX), down -0.16%.

• ETFs: WisdomTree U.S. Quality Dividend Growth Fund (DGRW) , down -0.49%, and JPMorgan Diversified Return U.S. Equity ETF (JPUS), down -0.44%.

 

Fixed Income

Fixed income funds have had a bad ride over the past two weeks of 2022, with long-term Treasuries among the worst performers. Funds that short sell Treasuries posted the strongest gains.

 

Top Performers

 

• Mutual Funds: Angel Oak UltraShort Income Fund (AOUAX) , flat 0%, and Aberdeen Ultra Short Municipal Income Fund (ATOIX), flat 0%.

• ETFs: ProShares UltraShort 20+ Year Treasury (TBT) , up 15.21%, and ProShares Short 20+ Year Treasury (TBF), up 7.39%.

 

Worst Performers

 

• Mutual Funds: American Century Global Bond Fund (AGBWX) , down -7.22%, and American Century Inflation-Adjusted Bond Fund (AIARX), down -5.8%.

• ETFs: iShares 20+ Year Treasury Bond ETF (TLT) , down -7.05%, and SPDR® Portfolio Long Term Treasury ETF (SPTL), down -6.63%.

 

Sector

Crude oil and energy shares have been the best performers for the past two weeks, while the companies in the cannabis, clean energy and semiconductor industries were hit hard.

 

Top Performers

 

• ETFs: ProShares Ultra Bloomberg Crude Oil (UCO) , up 15.69%, and Direxion Daily Energy Bull 2X Shares (ERX), up 8.72%.

 

Worst Performers

 

• Mutual Funds: American Beacon ARK Transformational Innovation Fund (ADNYX) , down -14.04%, and DWS RREEF Real Assets Fund (AAAZX), down -1.4%.

• ETFs: AdvisorShares Pure US Cannabis ETF (MSOS) , down -20.66%, and KraneShares Global Carbon ETF (KRBN), down -20.6%.

 

Foreign

In foreign equities, emerging markets made the list of both the best and worst performers. Brazil and Latina America shares are the top performers thanks to rising oil prices. Meanwhile, countries like Taiwan have disappointed as investors sold off semiconductor stocks.

 

Top Performers

 

• Mutual Funds: Artisan International Value Fund (APHKX) , up 1.15%, and Artisan International Small-Mid Fund (APHJX), up 1.02%.

• ETFs: iShares MSCI Brazil ETF (EWZ) , up 6.71%, and iShares Latin America 40 ETF (ILF), up 4.71%.

 

Worst Performers

 

• Mutual Funds: Bridge Builder International Equity Fund (BBIEX) , down -1.83%, and Aberdeen Emerging Markets Fund (AEMSX), down -1.27%.

• ETFs: SPDR® S&P Emerging Asia Pacific ETF (GMF) , down -2.18%, and John Hancock Multifactor Emerging Markets ETF (JHEM), down -2.11%.

 

Alternatives

Commodities like silver have continued their winning streak over the past two weeks. Funds focused on cannabis, managed futures and volatility management strategies have posted the weakest performance with double-digit losses.

 

Top Performers

 

• Mutual Funds: BlackRock Commodity Strategies Portfolio (BCSAX) , up 1.52%, and AB All Market Real Return Portfolio (AMTYX), up 0.7%.

• ETFs: ProShares Ultra Silver (AGQ) , up 6.17%, and iShares S&P GSCI Commodity-Indexed Trust (GSG), up 3.92%.

 

Worst Performers

 

• Mutual Funds: AlphaSimplex Managed Futures Strategy Fund (AMFAX) , down -22.91%, and American Beacon AHL Managed Futures Strategy Fund (AHLYX), down -14.38%.

• ETFs: ETFMG Alternative Harvest ETF (MJ) , down -12.16%, and ProShares Ultra VIX Short-Term Futures ETF (UVXY), down -9.5%.

 

ESG

Several ESG funds have ended the year down with small losses.

 

Worst Performers

 

• Mutual Funds: Brown Advisory Sustainable Growth Fund (BAFWX) , down -1.03%, and American Century Sustainable Equity Fund (AFDAX), down -0.67%.

• ETFs: iShares MSCI KLD 400 Social ETF (DSI) , down -0.72%, and Xtrackers MSCI USA ESG Leaders Equity ETF (USSG), down -0.57%.

Among major economic data released during the last two weeks, European manufacturing and services PMI have improved from the previous month but remained in negative territory. Meanwhile, manufacturing and services have been in recession mode for the past six and five months, respectively.

U.S. manufacturing and services PMI have also been deeply disappointed, falling further into contraction territory. Manufacturing PMI reached a low not seen since the COVID-19 pandemic. However, the U.S. jobs market still shows no signs of stress, with unemployment claims continuing to drop.

The Bank of Japan has left interest rates at a record low, but adjusted the yield curve on the benchmark 10-year government bonds from 0.25% to 0.5%, triggering a fall in domestic stock prices and a surge in the yen. However, the central bank hinted that the move is not part of a broader policy tightening, saying it will continue its bond buying activity.

Fund performance data is calculated for the period between December 19 and December 30.