This week, the U.S. stock market ended 2024 with its second consecutive year of gains and began 2025 with modest advances, despite an initially strong rally.

Economic data revealed a resilient labor market, as initial jobless claims dropped to 211,000, surpassing expectations. The Markit Manufacturing PMI rose to 49.4, signaling a move toward expansion. However, market optimism was tempered by cautious investor sentiment regarding potential interest rate cuts, as FedWatch tools indicated fewer cuts in 2025.

Next week, investors will focus on a wealth of economic data and developments that could drive market volatility. The Federal Open Market Committee (FOMC) meeting minutes are expected to shed light on the Federal Reserve’s stance, with potential implications for interest rate policy. Key labor metrics, including Job Openings and Labor Turnover Survey (JOLTS), unemployment rate, and jobless claims, could evoke mixed market reactions, while reports such as the Services PMI and Consumer Sentiment Index will provide additional insight into economic conditions.

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

The broader markets continued to be in the red for the rolling month.

Oil strategies emerged as the top performers for the rolling month, while growth, low volatility and healthcare strategies struggled.

U.S Equity Strategies

Among U.S. equities, several growth strategies struggled for the rolling month.

Winning

• The Hartford Growth Opportunities Fund (HGOCX), up 0.59%
• Voya Russell Large Cap Growth Index Portfolio (IRLAX), up 0.42%

Losing

• Schwab U.S. Large-Cap Growth ETF™ (SCHG), down -0.68%
• iShares Core S&P U.S. Growth ETF (IUSG), down -0.68%
• iShares S&P Small-Cap 600 Growth ETF (IJT), down -9.62%
• SPDR® S&P 600 Small Cap Growth ETF (SLYG), down -9.9%
• Lazard US Equity Concentrated Portfolio (LEVOX), down -59.57%
• AB Growth Fund (AGRCX), down -69.19%

Dividend Strategies

The majority of the dividend strategies continued to be in the red over the rolling month.

Winning

• Thornburg Investment Income Builder Fund (TIBAX), flat 0%

Losing

• Principal Global Diversified Income Fund (PGBAX), down -1.5%
• Fidelity® Dividend ETF for Rising Rates (FDRR), down -4.14%
• iShares International Select Dividend ETF (IDV), down -4.17%
• ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL), down -8.79%
• ProShares Russell 2000 Dividend Growers ETF (SMDV), down -10.83%
• USAA Income Stock Fund (UIISX), down -19.89%
• Sterling Capital Equity Income Fund (BEGIX), down -26.19%

U.S. Fixed Income Strategies

Several long-duration bond strategies continued to struggle over the rolling month.

Winning

• ProShares Short 20+ Year Treasury (TBF), up 6.27%
• ProShares Investment Grade—Interest Rate Hedged (IGHG), up 0.59%
• JPMorgan Strategic Income Opportunities Fund (JSOSX), up 0.26%
• Allspring Ultra Short-Term Income Fund (WUSDX), up 0.11%

Losing

• SPDR® Portfolio Long Term Treasury ETF (SPTL), down -5.92%
• iShares 20+ Year Treasury Bond ETF (TLT), down -6.71%
• Mercer Opportunistic Fixed Income Fund (MOFIX), down -7.45%
• Vanguard Extended Duration Treasury Index Fund (VEDIX), down -9.53%

Foreign Equity Strategies

Several emerging market strategies, especially Brazilian and South Korean equities, struggled for the rolling month.

Winning

• William Blair Emerging Markets Growth Fund (BIEMX), up 0.46%
• PGIM Jennison Emerging Markets Equity Opportunities Fund (PDEZX), up 0.4%

Losing

• iShares MSCI Saudi Arabia ETF (KSA), down -0.12%
• WisdomTree Europe Hedged Equity Fund (HEDJ), down -0.34%
• iShares MSCI South Korea ETF (EWY), down -9.86%
• iShares MSCI Brazil ETF (EWZ), down -10.02%
• American Beacon International Equity Fund (AAISX), down -21.23%
• Morgan Stanley Institutional Fund, Inc. International Equity Portfolio (MSIQX), down -29.74%

Foreign Fixed Income Strategies

Several global and emerging market debt strategies continued to post losses for the rolling month.

Winning

• Invesco International Bond Fund (OIBIX), up 0.69%
• T. Rowe Price Dynamic Global Bond Fund (TRDZX), up 0.65%

Losing

• VanEck Emerging Markets High Yield Bond ETF (HYEM), down -0.41%
• SPDR® Bloomberg Barclays Emerging Markets Local Bond ETF (EBND), down -2.05%
• T. Rowe Price International Bond Fund (PAIBX), down -3.49%
• SPDR® Bloomberg Barclays International Treasury Bond ETF (BWX), down -3.89%
• iShares International Treasury Bond ETF (IGOV), down -4.57%
• Templeton Global Bond Fund (TGBAX), down -5.13%

Alternatives

Among alternatives, commodity-based strategies posted nominal gains over the rolling month, while some low volatility and contrarian strategies continued to struggle.

Winning

• iShares S&P GSCI Commodity-Indexed Trust (GSG), up 4.71%
• First Trust Global Tactical Commodity Strategy Fund (FTGC), up 2.99%
• Credit Suisse Commodity Return Strategy Fund (CRSAX), up 2.25%
• Victory Market Neutral Income Fund (CBHAX), up 1.32%

Losing

• ETFMG Alternative Harvest ETF (MJ), down -8.53%
• VanEck Vectors Agribusiness ETF (MOO), down -10.49%
• Janus Henderson Contrarian Fund (JCNCX), down -15.68%
• Mercer Global Low Volatility Equity Fund (MGLVX), down -43.24%

Sectors

Among the sectors and industries, oil strategies came up on top of the list while healthcare strategies continued to struggle.

Winning

• United States Oil Fund, LP (USO), up 8.29%
• Invesco DB Oil Fund (DBO), up 2.61%
• Fidelity® Series Blue Chip Growth Fund (FSBDX), up 0.25%
• Fidelity® Blue Chip Growth K6 Fund (FBCGX), up 0.05%

Losing

• SPDR® S&P Metals and Mining ETF (XME), down -15.57%
• iShares U.S. Home Construction ETF (ITB), down -17.25%
• Fidelity Advisor® Health Care Fund (FHCCX), down -20.38%
• Fidelity® Select Health Care Services Portfolio (FSHCX), down -21.88%

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.