Last week, the markets remained volatile but mostly recovered from the earlier tech-induced plunge.

The Federal Reserve maintained its target range for the federal funds rate at 4.25%-4.5%, with Chair Jerome Powell emphasizing that it remains in no hurry to lower rates. Inflation stayed in the spotlight, as the core personal consumption expenditures (PCE) index, often cited as the Fed’s preferred measure, inched 0.3% higher in December.

Next week will be focussed on labor market health, with the Job Openings and Labor Turnover Survey (JOLTS) expected to show a robust number of openings. Attention will also turn to the official unemployment rate, which is currently above 4% but has started to edge lower, as well as to the ISM manufacturing and services PMI reports, both of which are anticipated to give a bullish yet mixed snapshot of the economy’s start to the year.

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

The broader markets posted marginal gains for the rolling month.

Gold continued to be one of the top performers for the rolling month, while some semiconductor and emerging market strategies struggled.

U.S Equity Strategies

Among U.S. equities, select small and mid-cap strategies continued to post decent gains for the rolling month.

Winning

• Aberdeen U.S. Small Cap Equity Fund (GNSRX), up 8.28%
• John Hancock Classic Value Fund (JCVSX), up 7.82%
• First Trust US Equity Opportunities ETF (FPX), up 7.38%
• iShares Russell Mid-Cap Growth ETF (IWP), up 5.29%
• Fidelity® Nasdaq Composite Index® ETF (ONEQ), up 0.7%

Losing

• iShares Micro-Cap ETF (IWC), down -0.5%
• Royce Special Equity Fund (RSQCX), down -1.09%
• HCM Tactical Growth Fund (HCMDX), down -4.27%

Dividend Strategies

Select dividend strategies, like dividend growth and options-based equity income, posted decent gains for the rolling month.

Winning

• First Trust Rising Dividend Achievers ETF (RDVY), up 6.29%
• Pioneer Equity Income Fund (PEQIX), up 5.36%
• JPMorgan Equity Income Fund (HLIEX), up 5.23%
• Invesco BuyBack Achievers ETF (PKW), up 4.49%
• WisdomTree U.S. SmallCap Dividend Fund (DES), up 1.17%
• Legg Mason Low Volatility High Dividend ETF (LVHD), up 0.29%

Losing

• Matthews Asia Dividend Fund (MIPIX), down -0.43%
• HCM Dividend Sector Plus Fund (HCMNX), down -0.47%

U.S. Fixed Income Strategies

Select long-duration and core bond strategies posted marginal gains for the rolling month.

Winning

• Invesco CEF Income Composite ETF (PCEF), up 2.46%
• PIMCO StocksPLUS® Long Duration Fund (PSLDX), up 2.31%
• Nationwide Core Plus Bond Fund (NWCPX), up 2.08%
• PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund (LTPZ), up 1.57%

Losing

• Goldman Sachs Access Treasury 0-1 Year ETF (GBIL), down -0.07%
• iShares California Muni Bond ETF (CMF), down -0.72%
• AlphaCentric Income Opportunities Fund (IOFCX), down -0.82%
• BNY Mellon Global Fixed Income Fund (DSDYX), down -2.46%

Foreign Equity Strategies

Swedish and Brazilian equity strategies posted solid gains, while Indian equity strategies continued to struggle for the rolling month.

Winning

• iShares MSCI Sweden ETF (EWD), up 9.44%
• iShares MSCI Brazil ETF (EWZ), up 9.11%
• Morgan Stanley Institutional Fund, Inc. International Advantage Portfolio (MFAIX), up 6.64%
• Fidelity® Europe Fund (FHJUX), up 6.08%

Losing

• Fidelity® Emerging Asia Fund (FSEAX), down -1.51%
• PGIM Jennison Emerging Markets Equity Opportunities Fund (PDEZX), down -2.28%
• iShares MSCI India ETF (INDA), down -4.05%
• WisdomTree India Earnings Fund (EPI), down -4.32%

Foreign Fixed Income Strategies

Select emerging market debt strategies continued to post marginal gains for the rolling month.

Winning

• Eaton Vance Emerging Markets Local Income Fund (EEIIX), up 3.5%
• Eaton Vance Emerging Markets Debt Opportunities Fund (EIDOX), up 2.65%
• SPDR® Bloomberg Barclays Emerging Markets Local Bond ETF (EBND), up 2.2%
• VanEck J.P. Morgan EM Local Currency Bond ETF (EMLC), up 2.11%

Losing

• SPDR® Bloomberg Barclays International Treasury Bond ETF (BWX), down -0.05%
• DFA World ex U.S. Government Fixed Income Portfolio (DWFIX), down -0.12%
• iShares International Treasury Bond ETF (IGOV), down -0.34%
• Janus Henderson Developed World Bond Fund (HFARX), down -0.78%

Alternatives

Among alternatives, gold continues to post solid gains over the rolling month, while some managed futures strategies struggled.

Winning

• Fidelity® Select Gold Portfolio (FSAGX), up 11.06%
• VanEck Vectors Agribusiness ETF (MOO), up 8.06%
• iShares Currency Hedged MSCI Eurozone ETF (HEZU), up 7.44%
• Janus Henderson Contrarian Fund (JCNCX), up 4.67%

Losing

• WisdomTree Japan Hedged Equity Fund (DXJ), down -0.05%
• American Beacon AHL Managed Futures Strategy Fund (AHLYX), down -1.4%
• PIMCO TRENDS Managed Futures Strategy Fund (PQTIX), down -1.83%
• ETFMG Alternative Harvest ETF (MJ), down -6.39%

Sectors

Among the sectors and industries, gold continued to post gains for the rolling month, while cannabis and semiconductors struggled.

Winning

• iShares MSCI Global Gold Miners ETF (RING), up 12.78%
• Franklin Gold and Precious Metals Fund (FGPMX), up 12.57%
• VanEck Vectors Gold Miners ETF (GDX), up 12.23%
• Fidelity® Select Health Care Services Portfolio (FSHCX), up 11.92%

Losing

• Fidelity Advisor® Semiconductors Fund (FIKGX), down -4.68%
• Fidelity® Select Semiconductors Portfolio (FSELX), down -4.84%
• Invesco WilderHill Clean Energy ETF (PBW), down -6%
• AdvisorShares Pure US Cannabis ETF (MSOS), down -6.16%

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.