This week’s economic scene revolved around inflation data, with the CPI rising by 2.9% year-over-year, slightly above expectations due to a spike in energy prices.

Meanwhile, core CPI advanced by 3.2% year-over-year, below forecasts of 3.3%. This outcome encouraged investors, amid speculation that the Federal Reserve may have additional room to cut rates if necessary. Markets also got a lift from better-than-expected fourth-quarter earnings reported by major banks—JPMorgan Chase, Wells Fargo, Goldman Sachs, and Citigroup—alongside strong retail sales that signaled continued consumer spending.

Turning to next week, the focus will shift to President Trump’s inauguration on Monday, although the holiday-shortened week due to Martin Luther King Day will keep trading sessions limited. Potential policies, such as tariffs, may weigh on market sentiment, but existing home sales will be the main economic data release to watch. With earnings season in full swing, uncertainty over the incoming administration’s agenda could fuel additional market volatility.

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

The broader markets continued to be down for the rolling month.

Commodity, especially oil strategies, continued to be the top performers for the rolling month, while several international strategies struggled.

U.S Equity Strategies

Among U.S. equities, select value strategies posted marginal gains for the rolling month.

Winning

• Smead Value Fund (SMVLX), up 1.16%
• BNY Mellon Dynamic Value Fund (DRGVX), up 0.99%

Losing

• Schwab U.S. Large-Cap Value ETF™ (SCHV), down -0.86%
• Schwab Fundamental U.S. Large Company Index ETF (FNDX), down -0.86%
• SPDR® S&P 600 Small Cap Value ETF (SLYV), down -5.11%
• iShares Micro-Cap ETF (IWC), down -5.27%
• Northern Small Cap Value Fund (NOSGX), down -38.71%
• Lazard US Equity Concentrated Portfolio (LEVOX), down -58.9%

Dividend Strategies

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

Winning

• First Trust Rising Dividend Achievers ETF (RDVY), up 0.64%
• T. Rowe Price Equity Income Fund (PRFDX), up 0.57%
• Thornburg Investment Income Builder Fund (TIBAX), up 0.04%

Losing

• Schwab U.S. Dividend Equity ETF™ (SCHD), down -0.18%
• WisdomTree U.S. SmallCap Dividend Fund (DES), down -4.59%
• ProShares Russell 2000 Dividend Growers ETF (SMDV), down -7.13%
• Payden Equity Income Fund (PYVLX), down -15.13%
• HCM Dividend Sector Plus Fund (HCMNX), down -17.51%

U.S. Fixed Income Strategies

Several long-duration bond strategies continued to be in the red for the rolling month.

Winning

• ProShares Short 20+ Year Treasury (TBF), up 3.16%
• DFA Two Year Global Fixed Income Portfolio (DFGFX), up 0.41%
• DFA Five Year Global Fixed Income Portfolio (DFGBX), up 0.4%
• iShares Floating Rate Bond ETF (FLOT), up 0.4%

Losing

• iShares 20+ Year Treasury Bond ETF (TLT), down -4.05%
• iShares Core International Aggregate Bond ETF (IAGG), down -4.97%
• PIMCO Extended Duration Fund (PEDPX), down -5.86%
• PIMCO StocksPLUS® Long Duration Fund (PSLDX), down -8.45%

Foreign Equity Strategies

Several European strategies posted marginal gains, while Indian equity strategies struggled for the rolling month.

Winning

• WisdomTree Europe Hedged Equity Fund (HEDJ), up 0.9%
• Xtrackers MSCI Europe Hedged Equity ETF (DBEU), up 0.86%
• DFA International Value Portfolio (DFIVX), up 0.34%
• DFA International Value III Portfolio (DFVIX), up 0.33%

Losing

• iShares MSCI India ETF (INDA), down -7.69%
• WisdomTree India Earnings Fund (EPI), down -7.82%
• Harding Loevner Institutional Emerging Markets Portfolio (HLEZX), down -15.51%
• American Beacon International Equity Fund (AAISX), down -20.64%

Foreign Fixed Income Strategies

Several international treasury strategies posted losses for the rolling month.

Winning

• T. Rowe Price Dynamic Global Bond Fund (TRDZX), up 0.9%
• Eaton Vance Emerging Markets Debt Opportunities Fund (EIDOX), up 0.5%

Losing

• VanEck Emerging Markets High Yield Bond ETF (HYEM), down -0.51%
• iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB), down -1.51%
• PIMCO International Bond Fund Unhedged (PFUNX), down -2.8%
• PIMCO International Bond Fund (“Unhedged”:), down -2.8%
• SPDR® Bloomberg Barclays International Treasury Bond ETF (BWX), down -3.2%
• iShares International Treasury Bond ETF (IGOV), down -4.22%

Alternatives

Among alternatives, commodity strategies posted solid gains over the rolling month, while some low volatility strategies continued to struggle.

Winning

• iShares S&P GSCI Commodity-Indexed Trust (GSG), up 8.87%
• Fidelity® Series Commodity Strategy Fund (FCSSX), up 6.7%
• DFA Commodity Strategy Portfolio (DCMSX), up 6.53%
• First Trust Global Tactical Commodity Strategy Fund (FTGC), up 5.39%

Losing

• ETFMG Alternative Harvest ETF (MJ), down -5.78%
• Invesco S&P SmallCap Low Volatility ETF (XSLV), down -6.07%
• SEI Institutional Investments Trust U.S. Managed Volatility Fund (SVYAX), down -10.59%
• SEI Institutional Investments Trust Global Managed Volatility Fund (SGMAX), down -12.53%

Sectors

Among the sectors and industries, energy strategies continued to be up for the rolling month, while growth strategies, including healthcare and innovative tech, struggled.

Winning

• United States Oil Fund, LP (USO), up 14.44%
• Invesco DB Oil Fund (DBO), up 8.62%
• Center Coast Brookfield Midstream Focus Fund (CCCAX), up 7.22%
• Vanguard Energy Index Fund (VENAX), up 6.47%

Losing

• ETFMG Prime Junior Silver Miners ETF (SILJ), down -8.13%
• Amplify Transformational Data Sharing ETF (BLOK), down -13.08%
• PGIM Jennison Health Sciences Fund (PHLAX), down -15.5%
• Transamerica International Focus (TGRFX), down -19.16%

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.