Stocks spent much of this week trending higher as improving inflation data and an accommodative Federal Reserve gave investors breathing room on interest rates.

The Consumer Price Index (CPI) remained unchanged in May, following a 0.3% increase in the previous month, and was below analysts’ predictions of a 0.1% increase. The overall inflation rate fell to 3.3% in May from a year earlier. This news was followed by the latest Federal Open Market Committee (FOMC) meeting, with the central bank again deciding to keep rates unchanged at 5.5%. The so-called Fed dot plot showed that policymakers only expect one rate cut this year and four reductions in 2025. However, many policymakers were pleased with inflation moving lower towards their 2% target. Prices for producers via the producer price index (PPI) also saw a decrease, falling 0.2% in May. Consumers weren’t necessarily happy, however. The University of Michigan consumer sentiment for the U.S. fell for a third straight month in June to 65.6, potentially indicating that high rates are finally hurting consumers enough to curtail spending.

Next week will be filled with plenty of speeches from various Federal Reserve governors. Given some of the voting statements in the last FOMC meeting, investors will be keen to see what’s on the minds of the various parties. Disagreement about the likely path of rates could inject more volatility into a subdued market. The retail sales report will also be on deck. After being unchanged in April, analysts expect a slight 0.2% bump for May. A big increase could signal that the economy isn’t slowing and that interest rates will need to stay high for even longer. Building permits and housing starts data will also be released next week. Both measures have been surprisingly bullish in recent readings, indicating that consumers are just now accepting higher borrowing costs for mortgages. Finally, investors will get a big swath of energy data from the U.S. Energy Information Administration (EIA).

Given this economic backdrop, let us see how this impacts the performance of various investment strategies.

Overall, major U.S. stock indices continued to remain in the positive territory for the rolling month.

Semiconductors roared back to become the top performers for the rolling month. Meanwhile, cannabis and Mexican equity strategies were some of the worst performers.

U.S Equity Strategies

Among U.S. equities, several growth strategies continued to post solid performances for the rolling month.

Winning

• HCM Tactical Growth Fund (HCMDX), up 9.8%
• The Hartford Growth Opportunities Fund (HGOCX), up 9%
• iShares Core S&P U.S. Growth ETF (IUSG), up 7.23%
• Fidelity® Nasdaq Composite Index® ETF (ONEQ), up 7.06%

Losing

• SPDR® S&P 600 Small Cap Value ETF (SLYV), down -4.89%
• Longleaf Partners Small-Cap Fund (LLSCX), down -5.02%
• Champlain Mid Cap Fund (CIPIX), down -5.2%
• iShares S&P Small-Cap 600 Value ETF (IJS), down -5.31%

Dividend Strategies

Several dividend growth and sector-specific strategies continued to rally over the rolling month.

Winning

• HCM Dividend Sector Plus Fund (HCMNX), up 5.08%
• Fidelity® Dividend Growth Fund (FDGFX), up 3.92%
• Fidelity® Dividend ETF for Rising Rates (FDRR), up 3.63%
• WisdomTree U.S. Quality Dividend Growth Fund (DGRW), up 2.84%

Losing

• Federated Hermes Strategic Value Dividend Fund (SVAIX), down -3.83%
• Pioneer Equity Income Fund (PEQIX), down -4.11%
• ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL), down -4.82%
• ProShares Russell 2000 Dividend Growers ETF (SMDV), down -4.91%

U.S. Fixed Income Strategies

In US fixed income, long-duration debt strategies continued to post positive results for the rolling month.

Winning

• Vanguard Extended Duration Treasury Index Fund (VEDIX), up 5.12%
• PIMCO Extended Duration Fund (PEDPX), up 4.83%
• iShares 20+ Year Treasury Bond ETF (TLT), up 3.32%
• SPDR® Portfolio Long Term Treasury ETF (SPTL), up 3.12%

Losing

• Franklin Floating Rate Daily Access Fund (FCFRX), down -0.64%
• T. Rowe Price Dynamic Global Bond Fund (TRDZX), down -1.29%
• iShares Floating Rate Bond ETF (FLOT), down -2.33%
• ProShares Short 20+ Year Treasury (TBF), down -3.1%

Foreign Equity Strategies

Among foreign equities, Indian equity strategies posted solid performances, while Mexican and Brazilian equity strategies continued to struggle.

Winning

• WisdomTree India Earnings Fund (EPI), up 5.6%
• iShares MSCI India ETF (INDA), up 4.7%
• Delaware Emerging Markets Fund (DEMRX), up 3.79%
• William Blair Emerging Markets Growth Fund (BIEMX), up 3.34%

Losing

• Fidelity® SAI International Value Index Fund (FIWCX), down -4.18%
• Hartford International Value Fund (HILCX), down -4.42%
• iShares MSCI Brazil ETF (EWZ), down -14.64%
• iShares MSCI Mexico ETF (EWW), down -17.75%

Foreign Fixed Income Strategies

Several developed and emerging market debt strategies continued to post marginal gains for the rolling month.

Winning

• Janus Henderson Developed World Bond Fund (HFARX), up 1.06%
• John Hancock Funds Emerging Markets Debt Fund (JEMIX), up 0.79%
• iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB), up 0.49%
• VanEck Emerging Markets High Yield Bond ETF (HYEM), up 0.37%

Losing

• SPDR® Bloomberg Barclays Emerging Markets Local Bond ETF (EBND), down -1.97%
• VanEck J.P. Morgan EM Local Currency Bond ETF (EMLC), down -2.34%
• Eaton Vance Emerging Markets Local Income Fund (EEIIX), down -2.64%
• PIMCO Emerging Markets Local Currency and Bond Fund (PELPX), down -2.74%

Alternatives

Among alternatives, agriculture and contrarian strategies posted strong results over the rolling month, while cannabis and natural resource-focused strategies continued to be in the red.

Winning

• Invesco DB Agriculture Fund (DBA), up 9.07%
• Fidelity® Contrafund® Fund (FCNKX), up 5.49%
• Columbia Contrarian Core Fund (SMGIX), up 4.08%
• Virtus InfraCap U.S. Preferred Stock ETF (PFFA), up 1.58%

Losing

• AlphaSimplex Managed Futures Strategy Fund (AMFAX), down -4.71%
• Fidelity® Select Gold Portfolio (FSAGX), down -5.75%
• SPDR® S&P Global Natural Resources ETF (GNR), down -7.95%
• ETFMG Alternative Harvest ETF (MJ), down -18.37%

Sectors

Among the sectors and industries, semiconductor strategies were the top performers, while cannabis, rare earth metal, and energy strategies struggled.

Winning

• VanEck Vectors Semiconductor ETF (SMH), up 17.67%
• Fidelity Advisor® Semiconductors Fund (FIKGX), up 15.99%
• Fidelity® Select Semiconductors Portfolio (FSELX), up 15.68%
• Amplify Transformational Data Sharing ETF (BLOK), up 13.25%

Losing

• Invesco Gold & Special Minerals Fund (OPGSX), down -5.69%
• Fidelity® Select Energy Portfolio (FSENX), down -5.83%
• VanEck Rare Earth/Strategic Metals ETF (REMX), down -16.85%
• AdvisorShares Pure US Cannabis ETF (MSOS), down -25.08%

Every week, MutualFunds.com provides a snapshot of the performance of some key mutual funds and ETFs to highlight the trending investment strategies across different sectors, geographic regions, asset classes, and themes. MutualFunds.com uses a proprietary system to scan through thousands of relevant mutual funds and ETFs. Fund performance data is calculated for the trailing one month, based on the change in NAV.


Here is a summary of the different strategies covered in this article:

• U.S. equity strategies typically cover different equity investing styles (growth/value/blend) and market capitalizations (small/mid/large).
• Dividend strategies focus on generating income via different equity routes (high yield/dividend growth/foreign dividend/quality dividend)
• U.S. fixed income strategies focus on debt securities issued by U.S. entities and can cover different types of debt (corporate/municipal/high-yield/investment-grade/government/asset-backed) and maturity profiles (short/medium/long).
• Foreign equity strategies cover equity strategies applied to non-U.S. markets based on the level of economic growth (emerging/developed), regions (Asia/Europe/Africa), and market capitalizations (small/mid/large).
• Foreign fixed-income strategies focus on debt securities issued outside the U.S. markets and can cover different regions (Asia/Europe/Africa) and regions based on the level of economic development (emerging/developed).
• Alternative strategies cover non-traditional investments (currencies, hedge funds strategies, derivatives, volatility-based), real estate, and commodities.
• Sector strategies cover dedicated exposure to various sectors of the U.S. economy including technology, healthcare, financial, and industrial among others.