Every fortnight, MutualFunds.com provides a snapshot of the performance of some key mutual funds and ETFs to highlight the trending sectors, geographic regions, and asset classes. MutualFunds.com uses a system to automatically scan through thousands of relevant securities and, to ensure quality and adequate track record, places a minimum threshold on net assets ($1 billion for mutual funds and $500 million for ETFs). The best and worst performers are further discussed in the report along with key economic highlights from the past fortnight, reminding you to adjust your portfolios, if required.

Markets have continued to rally these past two weeks, after the Federal Reserve raised the interest rate by only 0.25%, amid fears that banking sector issues might further tighten credit availability.

US Broad mostly includes funds focused on US equities and can cover different investing styles (growth/value) and market capitalizations (small/mid/large). Fixed Income includes funds focused on debt securities and can cover different geographies (US/foreign) and security types (corporate/municipal/high-yield/investment-grade/government/structured). Alternatives cover funds focused on non-traditional investment strategies (currency, hedge fund strategy, derivatives), leveraged/structured products, real estate, and commodities. Dividend funds focus on generating income via equities and not through debt.

 

U.S. Broad

U.S. growth stocks have been among the best performers these past fortnight, as investors embraced riskier assets. Meanwhile, micro-caps and value stocks have declined.

 

Top Performers

 

• Mutual Funds: PGIM Jennison Focused Growth Fund (SPFZX) , up 7.09%, and Gabelli Growth Fund (GABGX), up 6.94%.

• ETFs: Schwab U.S. Large-Cap Growth ETF™ (SCHG) , up 6.2%, and Fidelity® Nasdaq Composite Index® ETF (ONEQ), up 5.74%.

 

Worst Performers

• Mutual Funds: Vulcan Value Partners Small Cap Fund (VVISX) , down -2.76%, and Bridgeway Omni Small-Cap Value Fund (BOSVX), down -2.07%.

• ETFs: iShares Micro-Cap ETF (IWC) , down -3.08%, and iShares Russell 2000 Value ETF (IWN), down -1.95%.

 

Dividend

Dividend stocks have had a strong fortnight. Large cap and quality dividend stocks have edged up. At the same time, dividend growers have been among the worst performers.

 

Top Performers

 

• Mutual Funds: Goldman Sachs U.S. Equity Dividend and Premium Fund (GIDWX) , up 3.12%, and Vanguard Diversified Equity Fund (VDEQX), up 2.62%.

• ETFs: O’Shares U.S. Quality Dividend ETF (OUSA) , up 2.1%, and WisdomTree U.S. Quality Dividend Growth Fund (DGRW), up 2.07%.

 

Worst Performers

 

• Mutual Funds: Columbia Flexible Capital Income Fund (CFCYX) , down -2.3%, and Columbia Dividend Opportunity Fund (RSDFX), down -1.28%.

• ETFs: First Trust Dow Jones Global Select Dividend Index Fund (FGD) , down -3.07%, and Invesco S&P Ultra Dividend Revenue ETF (RDIV), down -2.29%.

 

Fixed Income

Long-term bonds were again the best performers. Investment-grade bonds have risen the most among ETFs. At the other end of the spectrum, high-yield bonds suffered losses.

 

Top Performers

 

• Mutual Funds: PIMCO StocksPLUS® Long Duration Fund (PSLDX) , up 3.54%, and Vanguard Long-Term Corporate Bond Index Fund (VLTCX), up 2.17%.

• ETFs: iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) , up 2.39%, and SPDR® Portfolio Long Term Corporate Bond ETF (SPLB), up 2.21%.

 

Worst Performers

 

• Mutual Funds: Ivy High Income Fund (WHIAX) , down -1.88%, and Delaware Ivy High Income Fund (IVHIX), down -1.88%.

• ETFs: ProShares UltraShort 20+ Year Treasury (TBT) , down -2.56%, and Invesco CEF Income Composite ETF (PCEF), down -2.11%.

 

Sector

The tech sector has been the best performer from the pack, with some leveraged funds gaining double digits. Meanwhile, biotech and oil company-focused funds posted significant losses.

 

Top Performers

 

• Mutual Funds: ProFunds UltraNASDAQ-100 Fund (UOPIX) , up 14.29%, and T. Rowe Price Science And Technology Fund (PRSCX), up 8.61%.

• ETFs: ProShares UltraPro QQQ (TQQQ) , up 21.05%, and Direxion Daily Technology Bull 3X Shares (TECL), up 20.97%.

 

Worst Performers

 

• Mutual Funds: Center Coast Brookfield Midstream Focus Fund (CCCAX) , down -4.23%, and Fidelity® Select Energy Portfolio (FSENX), down -4.13%.

• ETFs: ProShares UltraPro Short QQQ (SQQQ) , down -19.53%, and Direxion Daily S&P Biotech Bull 3X Shares (LABU), down -14.58%.

 

Foreign

Singapore equities have posted the strongest gains, as inflows of capital from countries like China have triggered an investment boom. Meanwhile, Latin America equities, especially Brazil-focused funds, suffered losses.

 

Top Performers

 

• Mutual Funds: Artisan Developing World Fund (APHYX) , up 5.5%, and Morgan Stanley Institutional Fund, Inc. International Opportunity Portfolio (MIOPX), up 4.27%.

• ETFs: iShares MSCI Singapore ETF (EWS) , up 5.69%, and iShares Asia 50 ETF (AIA), up 4.5%.

 

Worst Performers

 

• Mutual Funds: Hartford International Value Fund (HILCX) , down -2.17%, and DFA International Value III Portfolio (DFVIX), down -2.02%.

• ETFs: iShares MSCI Brazil ETF (EWZ) , down -3.5%, and iShares International Select Dividend ETF (IDV), down -2.67%.

 

Alternatives

In alternatives, commodities like gold and silver have jumped, while volatility instruments and preferred stock-based funds have been clobbered.

 

Top Performers

 

• Mutual Funds: Fidelity® Select Gold Portfolio (FSAGX) , up 7.08%, and Fidelity® Contrafund® Fund (FCNKX), up 4.59%.

• ETFs: ProShares Ultra Silver (AGQ) , up 12.8%, and ProShares Short VIX Short-Term Futures ETF (SVXY), up 3.19%.

 

Worst Performers

 

• Mutual Funds: Nuveen Preferred Securities & Income Fund (NPSRX) , down -6.64%, and Cohen & Steers Preferred Securities and Income Fund, Inc. (CPXIX), down -3.94%.

• ETFs: ProShares Ultra VIX Short-Term Futures ETF (UVXY) , down -14.24%, and First Trust Preferred Securities and Income ETF (FPE), down -5.66%.

 

ESG

Majority of ESG funds posted gains these past two weeks.

 

Top Performers

• Mutual Funds: Brown Advisory Sustainable Growth Fund (BAFWX) , up 4.22%, and Fidelity® US Sustainability Index Fund (FITLX), up 3.94%.

• ETFs: iShares MSCI KLD 400 Social ETF (DSI) , up 3.63%, and Xtrackers MSCI USA ESG Leaders Equity ETF (USSG), up 3.59%.

Among major economic data released during the last two weeks, the U.S. Federal Reserve has raised the interest rate by 0.25%, as it continues to fight inflation despite fears about the health of the banking industry. The Fed took the middle road, not tightening too much given the risks but still indicating its commitment to low inflation. U.S. inflation fell to 6% from about 6.4%, but core inflation, which excludes volatile items like food and energy, rose more than expected by 0.5% month-over-month. Retail sales declined 0.4% after a strong increase during the prior month. U.S. consumer sentiment also declined after three months of increases.

The European Central Bank ignored issues in the banking sector and raised interest rates by 0.5% to 3.50%. However, the ECB still has room to increase rates to catch up with the Federal Reserve (5%) and the Bank of England. European manufacturing purchasing managers’ indexes have fallen further into negative territory, while services PMI advanced to a one-year high. Manufacturing PMIs are in negative territory in both the U.S. and the U.K., while services PMI points to expansion in the sector.

Fund performance data is calculated for the period between March 13, 2023 and March 27, 2023.