Volatility persisted this week as fresh economic concerns and mixed technology sector earnings influenced market sentiment.

President Trump initially imposed 25% tariffs on Canada and Mexico and 10% on China under the International Economic Emergency Powers Act, though he later paused these measures following constructive discussions on border security. Meanwhile, the Job Openings and Labor Turnover Survey (JOLTS) revealed a decline in job openings to 7.6 million in December, below the roughly 8 million anticipated figure and seen as supportive of further Federal Reserve rate cuts. Additionally, artificial intelligence investments by major tech companies, including Google, impacted earnings, adding to further market volatility.

Looking ahead, the spotlight next week will be on inflation data with the release of the latest Consumer Price Index (CPI) report. The annual inflation rate in the US rose for a third straight month to 2.9% in December, up from 2.7% in November, suggesting a more complicated landscape for monetary policy. Federal Reserve Chair Jerome Powell’s testimony, along with upcoming Producer Price Index (PPI) data and retail sales figures — expected to show a modest 0.3% increase — may further guide market direction.

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

The broader markets continued to post marginal gains for the rolling month.

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

Winning

• Aberdeen U.S. Small Cap Equity Fund (GNSRX), up 8.5%
• First Trust US Equity Opportunities ETF (FPX), up 8.04%
• Independent Franchise Part Equity Fund (IFPUX), up 7.37%
• iShares Russell Mid-Cap Growth ETF (IWP), up 5.27%

Losing

• iShares Micro-Cap ETF (IWC), down -0.44%
• Fidelity® Nasdaq Composite Index® ETF (ONEQ), down -1.12%
• Royce Special Equity Fund (RSQCX), down -1.82%
• HCM Tactical Growth Fund (HCMDX), down -5.59%

Dividend Strategies

Select strategies, like rising dividends and small-cap dividends, posted decent gains for the rolling month.

Winning

• Columbia Dividend Income Fund (CDDYX), up 4.73%
• Invesco Diversified Dividend Fund (LCEFX), up 4.68%
• First Trust Rising Dividend Achievers ETF (RDVY), up 4.63%
• ProShares Russell 2000 Dividend Growers ETF (SMDV), up 4.12%
• Fidelity® High Dividend ETF (FDVV), up 0.87%
• Fidelity® Dividend ETF for Rising Rates (FDRR), up 0.83%

Losing

• Matthews Asia Dividend Fund (MIPIX), down -0.14%
• HCM Dividend Sector Plus Fund (HCMNX), down -1.34%

U.S. Fixed Income Strategies

Several long-duration bond strategies continued to post marginal gains for the rolling month, while some floating rate strategies struggled.

Winning

• PIMCO Extended Duration Fund (PEDPX), up 5.56%
• Vanguard Extended Duration Treasury Index Fund (VEDIX), up 5.36%
• PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund (LTPZ), up 5.32%
• iShares 20+ Year Treasury Bond ETF (TLT), up 3.44%

Losing

• iShares California Muni Bond ETF (CMF), down -0.4%
• Franklin Floating Rate Daily Access Fund (FCFRX), down -0.52%
• Victory Floating Rate Fund (RSFLX), down -0.62%
• ProShares Short 20+ Year Treasury (TBF), down -3.03%

Foreign Equity Strategies

Swedish and Brazilian equity strategies continue to post solid gains, while Indian and Taiwanese equity strategies were down for the rolling month.

Winning

• iShares MSCI Brazil ETF (EWZ), up 11.34%
• iShares MSCI Sweden ETF (EWD), up 8.88%
• JPMorgan Europe Dynamic Fund (JFESX), up 6.6%
• Fidelity® Europe Fund (FHJUX), up 6.4%

Losing

• PGIM Jennison Emerging Markets Equity Opportunities Fund (PDEZX), down -2.18%
• William Blair Emerging Markets Growth Fund (BIEMX), down -2.51%
• WisdomTree India Earnings Fund (EPI), down -2.93%
• iShares MSCI Taiwan ETF (EWT), down -3.14%

Foreign Fixed Income Strategies

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

Winning

• Eaton Vance Emerging Markets Local Income Fund (EEIIX), up 2.53%
• Templeton Global Bond Fund (TGBAX), up 2.3%
• iShares International Treasury Bond ETF (IGOV), up 1.83%
• SPDR® Bloomberg Barclays Emerging Markets Local Bond ETF (EBND), up 1.83%
• VanEck J.P. Morgan EM Local Currency Bond ETF (EMLC), up 1.68%
• Invesco International Bond Fund (OIBIX), up 0.68%
• VanEck Emerging Markets High Yield Bond ETF (HYEM), up 0.66%

Losing

• T. Rowe Price Dynamic Global Bond Fund (TRDZX), down -0.13%

Alternatives

Among alternatives, gold continued its upward trajectory over the rolling month, while some managed futures strategies kept struggling.

Winning

• Fidelity® Select Gold Portfolio (FSAGX), up 18.15%
• Vanguard Commodity Strategy Fund (VCMDX), up 5.83%
• iShares Currency Hedged MSCI Eurozone ETF (HEZU), up 5.72%
• Invesco DB Agriculture Fund (DBA), up 5.45%

Losing

• WisdomTree Japan Hedged Equity Fund (DXJ), down -1%
• American Beacon AHL Managed Futures Strategy Fund (AHLYX), down -3.2%
• PIMCO TRENDS Managed Futures Strategy Fund (PQTIX), down -3.36%
• ETFMG Alternative Harvest ETF (MJ), down -3.83%

Sectors

Among the sectors and industries, gold strategies continued to post some of the best performances for the rolling month, while semiconductors continued to struggle.

Winning

• Franklin Gold and Precious Metals Fund (FGPMX), up 19.78%
• iShares MSCI Global Gold Miners ETF (RING), up 19.73%
• VanEck Vectors Gold Miners ETF (GDX), up 18.68%
• First Eagle Gold Fund (FEGIX), up 15.96%

Losing

• Fidelity Advisor® Semiconductors Fund (FIKGX), down -6.84%
• Fidelity® Select Semiconductors Portfolio (FSELX), down -7.31%
• First Trust NASDAQ® Clean Edge® Green Energy Index Fund (QCLN), down -9.74%
• Invesco WilderHill Clean Energy ETF (PBW), down -14.81%

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.