Last week was almost all about the Federal Reserve, with the central bank pointing to rate cuts as early as the fall.

In his testimony before the House and Senate, Chairman Powell recognized that declining labor market conditions were becoming more important than fighting inflation and that the central bank would act appropriately. FedWatch tools now estimate that 2024 will see two rate cuts, starting in September. A lower June CPI reading supported the expected rate cuts, as the measure of inflation only grew by 0.1% in June, matching estimates and less than the 0.2% increase in May. In the 12 months through June, the CPI rose 3.0%, the smallest gain since June 2023. This sent stocks higher on the week. However, not all risk assets benefited, with Bitcoin still falling as selling pressure persists.

Next week, investors will hear directly from Federal Reserve Chairman Powell again as he is set to deliver several planned speeches. This could give the market insight into the central bank’s timeline for rate cuts. Retail sales data will be released and is expected to be flat, reflecting the slowing economy and growing labor market issues. Building permits and housing starts are expected to get a boost as mortgage rates have continued to moderate. Investors will also tune into the weekly jobless numbers, as any indication that employment is slipping could provide just what the Federal Reserve is looking for to cut rates.

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.

Gold and silver strategies outperformed others over the rolling month. Meanwhile, solar, and small cap strategies continued to struggle.

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 7.77%
• Hood River Small-Cap Growth Fund (HRSMX), up 6.56%
• Fidelity® Nasdaq Composite Index® ETF (ONEQ), up 5.51%
• iShares Core S&P U.S. Growth ETF (IUSG), up 5.46%
• Schwab U.S. Large-Cap Value ETF™ (SCHV), up 1.56%
• Invesco S&P SmallCap 600 Revenue ETF (RWJ), up 1.01%

Losing

• Fidelity® Small Cap Discovery Fund (FSCRX), down -5.5%
• Columbia Small Cap Value Fund II (CRRRX), down -8.95%

Dividend Strategies

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

Winning

• HCM Dividend Sector Plus Fund (HCMNX), up 6.1%
• ProShares Russell 2000 Dividend Growers ETF (SMDV), up 5.07%
• WisdomTree U.S. SmallCap Dividend Fund (DES), up 4.26%
• Matthews Asia Dividend Fund (MIPIX), up 4.22%
• First Trust Dow Jones Global Select Dividend Index Fund (FGD), up 0.53%
• First Trust Value Line® Dividend Index Fund (FVD), up 0.51%
• Ivy Mid Cap Income Opportunities Fund (IVOSX), up 0.21%

Losing

• Vanguard Dividend Growth Fund (VDIGX), down -0.36%

U.S. Fixed Income Strategies

In US fixed income, several long duration debt strategies were up for the rolling month.

Winning

• PIMCO Extended Duration Fund (PEDPX), up 2.37%
• Columbia Quality Income Fund (AUGAX), up 2.2%
• Invesco CEF Income Composite ETF (PCEF), up 2.19%
• PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund (LTPZ), up 1.92%

Losing

• iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH), down -1.02%
• AlphaCentric Income Opportunities Fund (IOFCX), down -1.19%
• City National Rochdale Fixed Income Opportunities Fund (RIMOX), down -1.66%
• ProShares Short 20+ Year Treasury (TBF), down -3%

Foreign Equity Strategies

Among foreign equities, Asian markets, especially Taiwan, continued to rally, while some European equity strategies struggled.

Winning

• iShares MSCI Taiwan ETF (EWT), up 10.33%
• Delaware Emerging Markets Fund (DEMRX), up 9.86%
• iShares Asia 50 ETF (AIA), up 9.29%
• Templeton Developing Markets Trust (TDADX), up 7.5%

Losing

• Columbia Acorn International Fund (ACINX), down -0.46%
• WisdomTree China ex-State-Owned Enterprises Fund (CXSE), down -1.86%
• Longleaf Partners International Fund (LLINX), down -2.49%
• WisdomTree Europe Hedged Equity Fund (HEDJ), down -2.79%

Foreign Fixed Income Strategies

Majority of the foreign market debt strategies were up over the rolling month.

Winning

• Invesco International Bond Fund (OIBIX), up 3.33%
• Ashmore Emerging Markets Total Return Fund (EMKIX), up 3.14%
• VanEck J.P. Morgan EM Local Currency Bond ETF (EMLC), up 2.1%
• iShares International Treasury Bond ETF (IGOV), up 1.91%
• SPDR® Bloomberg Barclays International Treasury Bond ETF (BWX), up 1.26%
• VanEck Emerging Markets High Yield Bond ETF (HYEM), up 1.21%
• PIMCO International Bond Fund Unhedged (PFUNX), up 0.68%
• Eaton Vance Emerging Markets Debt Opportunities Fund (EIDOX), up 0.51%

Alternatives

Among alternatives, gold strategies made a comeback and were the top performers over the rolling month, while agriculture-focused strategies continued to struggle.

Winning

• Fidelity® Select Gold Portfolio (FSAGX), up 10.28%
• iShares Currency Hedged MSCI Japan ETF (HEWJ), up 5.33%
• WisdomTree Japan Hedged Equity Fund (DXJ), up 4.9%
• Janus Henderson Contrarian Fund (JCNCX), up 4.71%

Losing

• ETFMG Alternative Harvest ETF (MJ), down -2.23%
• Credit Suisse Commodity Return Strategy Fund (CRSAX), down -2.4%
• DWS Enhanced Commodity Strategy Fund (SKSRX), down -2.53%
• Invesco DB Agriculture Fund (DBA), down -3.09%

Sectors

Among the sectors and industries, gold and silver strategies were the top performers, while solar and rare earth metal strategies continued to struggle.

Winning

• iShares MSCI Global Gold Miners ETF (RING), up 14.66%
• ETFMG Prime Junior Silver Miners ETF (SILJ), up 13.47%
• Invesco Gold & Special Minerals Fund (OPGSX), up 11.37%
• John Hancock Regional Bank Fund (FRBAX), up 11.33%

Losing

• Stone Ridge High Yield Reinsurance Risk Premium Fund (SHRIX), down -1.1%
• Fidelity® Select Medical Technology and Devices Portfolio (FSMEX), down -1.26%
• VanEck Rare Earth/Strategic Metals ETF (REMX), down -6.66%
• Invesco Solar ETF (TAN), down -9.53%

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.