Last week, major indices climbed, driven by gains in tech and the outcome of the first presidential election debate, which saw former President Trump emerge as the early favorite.

Investors also saw some good news on the inflation front. The Federal Reserve’s favorite measure- the Core Personal Consumption Expenditures (PCE) price index- rose by just 0.1% in May, representing the slowest pace of increases in three months. The data point gave investors hope that the central bank would finally be able to cut interest rates soon. Lower real gross domestic product (GDP) growth of 1.4% in Q1 also helped, as did a soft durable goods rise of only 0.1% in May. Consumers remained a bright spot for the economy as both personal spending and income figures gained, beating market expectations.

The July 4th holiday will see a shortened trading week, with the markets closed on Thursday. However, a lot of data will be released, including the key Federal Open Market Committee (FOMC) meeting minutes. Investors will tune into the notes to gauge when the central bank might cut rates, with a likely focus on some of the discussions around the timing of future rate cuts from various central bank governors. Both the ISM services and manufacturing PMIs will be released as will the official unemployment rate. Analysts will be looking for softening among these numbers to justify a rate cut, but hopefully not so soft as to indicate a looming recession. Finally, the latest Job Openings and Labor Turnover Survey (JOLTS) and weekly jobless claims, which have both been trending bullishly, will be announced.

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

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

Growth strategies, including biotech and tech, continued to outperform others over the rolling month. Meanwhile, precious/rare earth metal and Mexican equity strategies struggled.

U.S Equity Strategies

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

Winning

• HCM Tactical Growth Fund (HCMDX), up 7.27%
• Vanguard Mega Cap Growth Index Fund (VMGAX), up 6.43%
• iShares Core S&P U.S. Growth ETF (IUSG), up 5.39%
• Schwab U.S. Large-Cap Growth ETF™ (SCHG), up 5.31%

Losing

• Invesco S&P SmallCap 600 Revenue ETF (RWJ), down -3.91%
• iShares Micro-Cap ETF (IWC), down -3.92%
• Fidelity® Small Cap Discovery Fund (FSCRX), down -10.13%
• Columbia Small Cap Value Fund II (CRRRX), down -14.2%

Dividend Strategies

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

Winning

• HCM Dividend Sector Plus Fund (HCMNX), up 4.8%
• Nuveen Santa Barbara Dividend Growth Fund (NSBFX), up 3.34%
• WisdomTree U.S. Quality Dividend Growth Fund (DGRW), up 3.07%
• FlexShares Quality Dividend Index Fund (QDF), up 2.66%

Losing

• Ivy Mid Cap Income Opportunities Fund (IVOSX), down -1.56%
• Principal Small-MidCap Dividend Income Fund (PMDIX), down -1.65%
• SPDR® S&P International Dividend ETF (DWX), down -2.61%
• First Trust Dow Jones Global Select Dividend Index Fund (FGD), down -5.68%

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 5.64%
• PIMCO Extended Duration Fund (PEDPX), up 5.42%
• iShares 20+ Year Treasury Bond ETF (TLT), up 3.83%
• SPDR® Portfolio Long Term Treasury ETF (SPTL), up 3.56%

Losing

• City National Rochdale Fixed Income Opportunities Fund (RIMOX), down -1.06%
• T. Rowe Price Dynamic Global Bond Fund (TRDZX), down -1.29%
• iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH), down -1.46%
• ProShares Short 20+ Year Treasury (TBF), down -4.82%

Foreign Equity Strategies

Among foreign equities, Indian equity strategies continued to rally, while Mexican equity strategies continued to struggle.

Winning

• iShares India 50 ETF (INDY), up 4.64%
• WisdomTree India Earnings Fund (EPI), up 4.51%
• Delaware Emerging Markets Fund (DEMRX), up 3.03%
• William Blair Emerging Markets Growth Fund (BIEMX), up 2.89%

Losing

• Oakmark International Fund (OANEX), down -6.27%
• Oakmark International Small Cap Fund (OAZEX), down -6.27%
• iShares Latin America 40 ETF (ILF), down -10.08%
• iShares MSCI Mexico ETF (EWW), down -13.93%

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 0.93%
• iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB), up 0.88%
• VanEck Emerging Markets High Yield Bond ETF (HYEM), up 0.73%
• John Hancock Funds Emerging Markets Debt Fund (JEMIX), up 0.53%

Losing

• SPDR® Bloomberg Barclays Emerging Markets Local Bond ETF (EBND), down -2.41%
• VanEck J.P. Morgan EM Local Currency Bond ETF (EMLC), down -3.06%
• PIMCO Emerging Markets Local Currency and Bond Fund (PELPX), down -3.59%
• Eaton Vance Emerging Markets Local Income Fund (EEIIX), down -4.37%

Alternatives

Among alternatives, contrarian and volatility management strategies posted strong results over the rolling month, while natural resource and gold-focused strategies continued to struggle.

Winning

• Fidelity® Contrafund® Fund (FCNKX), up 4.12%
• Janus Henderson U.S. Managed Volatility Fund (JRSDX), up 3.57%
• Fidelity® Low Volatility Factor ETF (FDLO), up 3.15%
• iShares Currency Hedged MSCI Japan ETF (HEWJ), up 1.81%

Losing

• DWS Enhanced Commodity Strategy Fund (SKSRX), down -6.15%
• Invesco DB Agriculture Fund (DBA), down -6.23%
• Fidelity® Select Gold Portfolio (FSAGX), down -6.42%
• SPDR® S&P Global Natural Resources ETF (GNR), down -6.46%

Sectors

Among the sectors and industries, biotech and tech strategies were the top performers, while rare earth metals and gold strategies struggled.

Winning

• Fidelity® Select Biotechnology Portfolio (FBIOX), up 6.73%
• Ivy Science and Technology Fund (ISTIX), up 5.99%
• iShares U.S. Technology ETF (IYW), up 5.61%
• Amplify Transformational Data Sharing ETF (BLOK), up 5.49%

Losing

• Franklin Gold and Precious Metals Fund (FGPMX), down -7.08%
• Sprott Gold Equity Fund (SGDLX), down -7.73%
• Invesco Solar ETF (TAN), down -11.68%
• VanEck Rare Earth/Strategic Metals ETF (REMX), down -18.78%

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.