This week’s economic indicators painted a somewhat mixed picture.

Inflation showed persistence, with a 0.3% monthly CPI increase marking the fourth straight month at or above that level, and a 2.7% annual rate aligning with expectations but still elevated. Stocks reacted with frequent fluctuations as markets weighed the possibility of a December rate cut against an unclear longer-term policy path, while bond yields moved higher, applying pressure to certain equities.

Next week, attention will turn to the Federal Open Market Committee (FOMC) meeting, where a 0.25% rate cut is anticipated, and to the subsequent press conference, which may signal the central bank’s stance on handling persistent inflation. Key reports scheduled for release include the PCE Price Index, consumer spending and income data, and updated GDP figures. These indicators will provide additional insight into the trajectory of inflation and monetary policy.

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

The broader markets almost remained flat for the rolling month.

Growth, especially tech, strategies continued to be the top performers for the rolling month, while real estate and healthcare strategies struggled.

U.S Equity Strategies

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

Winning

• Spyglass Growth Fund (SPYGX), up 10.14%
• Touchstone Sands Capital Select Growth Fund (TSNCX), up 7.7%
• Fidelity® Nasdaq Composite Index® ETF (ONEQ), up 3.84%
• Schwab U.S. Large-Cap Growth ETF™ (SCHG), up 3.81%

Losing

• iShares Russell 2000 Value ETF (IWN), down -1.8%
• Schwab U.S. Large-Cap Value ETF™ (SCHV), down -1.96%
• Brown Capital Management Small Company Fund (BCSIX), down -31.94%
• AB Growth Fund (AGRCX), down -67.64%

Dividend Strategies

Diversified and sector-specific dividend strategies posted gains for the rolling month.

Winning

• Vanguard Diversified Equity Fund (VDEQX), up 1.64%
• HCM Dividend Sector Plus Fund (HCMNX), up 1.64%
• FlexShares Quality Dividend Index Fund (QDF), up 0.99%
• iShares International Select Dividend ETF (IDV), up 0.88%

Losing

• ALPS Sector Dividend Dogs ETF (SDOG), down -2.3%
• Schwab U.S. Dividend Equity ETF™ (SCHD), down -3.12%
• Ivy Mid Cap Income Opportunities Fund (IVOSX), down -10.24%
• Sterling Capital Equity Income Fund (BEGIX), down -21.69%

U.S. Fixed Income Strategies

In US fixed income, high yield municipal bond strategies posted positive results, while floating rate strategies continued to struggle.

Winning

• Nuveen California High Yield Municipal Bond Fund (NCHRX), up 1.75%
• Nuveen High Yield Municipal Bond Fund (NHCCX), up 1.69%
• iShares Core International Aggregate Bond ETF (IAGG), up 1.26%
• SPDR® Nuveen Bloomberg Barclays Municipal Bond ETF (TFI), up 0.85%

Losing

• PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund (LTPZ), down -0.73%
• iShares Floating Rate Bond ETF (FLOT), down -2.52%
• T. Rowe Price U.S. Limited Duration TIPS Index Fund (TLDTX), down -2.88%
• Optimum Fixed Income Fund (OIFIX), down -3.1%

Foreign Equity Strategies

Among foreign equities, Singaporean and Japanese equity strategies continued to post solid gains while Brazilian and South Korean equity strategies struggled.

Winning

• Morgan Stanley Institutional Fund, Inc. International Advantage Portfolio (MFAIX), up 4.38%
• iShares MSCI Singapore ETF (EWS), up 3.97%
• T. Rowe Price Japan Fund (RJAIX), up 3.55%
• iShares MSCI Germany ETF (EWG), up 2.92%

Losing

• iShares MSCI Brazil ETF (EWZ), down -4.33%
• iShares MSCI South Korea ETF (EWY), down -4.92%
• Artisan International Fund (APHIX), down -10.06%
• WCM Focused International Growth Fund (WCMRX), down -10.57%

Foreign Fixed Income Strategies

Several developed and international market debt strategies posted positive returns for the rolling month.

Winning

• Janus Henderson Developed World Bond Fund (HFARX), up 1.94%
• Invesco International Bond Fund (OIBIX), up 1.63%
• iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB), up 0.51%
• SPDR® Bloomberg Barclays Emerging Markets Local Bond ETF (EBND), up 0.45%

Losing

• VanEck Emerging Markets High Yield Bond ETF (HYEM), down -0.05%
• VanEck J.P. Morgan EM Local Currency Bond ETF (EMLC), down -0.17%
• Templeton Global Bond Fund (TGBAX), down -0.87%
• Eaton Vance Emerging Markets Local Income Fund (EEIIX), down -0.92%

Alternatives

Among alternatives, agriculture and gold strategies posted solid gains over the rolling month, while contrarian strategies struggled.

Winning

• Invesco DB Agriculture Fund (DBA), up 8.31%
• Fidelity® Select Gold Portfolio (FSAGX), up 6.23%
• First Trust Global Tactical Commodity Strategy Fund (FTGC), up 3.56%
• DFA Commodity Strategy Portfolio (DCMSX), up 2.92%

Losing

• Invesco Preferred ETF (PGX), down -2.22%
• ETFMG Alternative Harvest ETF (MJ), down -3.23%
• Columbia Contrarian Core Fund (SMGIX), down -6.12%
• Janus Henderson Contrarian Fund (JCNCX), down -13.29%

Sectors

Among the sectors and industries, tech strategies continued to be the top performers while mortgage and healthcare strategies struggled.

Winning

• ARK Next Generation Internet ETF (ARKW), up 11.88%
• ARK Autonomous Technology & Robotics ETF (ARKQ), up 10.03%
• American Beacon ARK Transformational Innovation Fund (ADNYX), up 6.85%
• Fidelity® Select Software & IT Services Portfolio (FSCSX), up 6.5%

Losing

• VanEck Rare Earth/Strategic Metals ETF (REMX), down -10.5%
• Delaware Ivy Science and Technology Fund (WSTAX), down -12.92%
• Delaware Healthcare Fund (DLHAX), down -15.66%
• iShares Mortgage Real Estate Capped ETF (REM), down -33.33%

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.