This week’s market narrative revolved around inflation and labor data.
The core PCE price index, the Federal Reserve’s preferred gauge, advanced only 0.1% month-over-month and 2.6% year-over-year, its lowest annual pace in three years. Alongside that cooling price backdrop, consumer-confidence readings slipped and weekly jobless claims edged higher, hinting at a softer labor market. Equity performance remained split: semiconductor and AI-linked names pushed higher, while more traditional sectors lagged, leaving the major indices little changed for the week overall.
Looking ahead, next week brings several high-profile data releases and policy moments. Tuesday’s ISM Manufacturing PMI will provide a fresh snapshot of factory momentum, followed by the JOLTS job openings survey and the weekly initial-claims tally, both key to assessing labor-market cooling. Federal Reserve Chair Jerome Powell’s scheduled testimony on Capitol Hill will be parsed for any clues on timing for a potential rate cut, while lawmakers face a deadline to vote on a tax-and-spending package and to decide whether to extend expiring tariff waivers.
Given this economic backdrop, let us see how this impacts the performance of various investment strategies.
Investment Strategy Scorecard
The broader markets was marginally up over the rolling month.
Precious metals and semiconductors posted solid gains, while several large cap equities continued to lose ground over the rolling month.
U.S Equity Strategies
Several US growth strategies continued to suffer over the rolling month.
Winning
- Emerald Growth Fund (HSPGX), up 7.37%
- Fidelity Advisor® Growth Opportunities Fund (FAGAX), up 6.6%
- iShares Morningstar Growth ETF (ILCG), up 4.17%
- Fidelity® Nasdaq Composite Index® ETF (ONEQ), up 4.05%
Losing
- iShares S&P Mid-Cap 400 Growth ETF (IJK), down -0.03%
- SPDR® S&P 400 Mid Cap Growth ETF (MDYG), down -0.11%
- Columbia Large Cap Index Fund (CLXRX), down -7.81%
- Columbia Select Large Cap Growth Fund (CCWRX), down -11.5%
Dividend Strategies
Several dividend growth and international strategies posted robust gains over the rolling month.
Winning
- ProShares S&P 500 Dividend Aristocrats ETF (NOBL), up 44.44%
- First Trust Dow Jones Global Select Dividend Index Fund (FGD), up 5.17%
- HCM Dividend Sector Plus Fund (HCMNX), up 3.99%
- Vanguard Diversified Equity Fund (VDEQX), up 3.05%
Losing
- Federated Hermes Strategic Value Dividend Fund (SVAIX), down -0.98%
- ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL), down -1.48%
- DWS CROCI Equity Dividend Fd (KDHSX), down -1.74%
- Invesco International Dividend Achievers ETF (PID), down -1.81%
U.S. Fixed Income Strategies
Long duration debt strategies posted decent gains, while some municipal debt strategies continued with their struggles.
Winning
- AlphaCentric Income Opportunities Fund (IOFCX), up 3.2%
- PIMCO Extended Duration Fund (PEDPX), up 3.13%
- SPDR® Portfolio Long Term Corporate Bond ETF (SPLB), up 2.1%
- iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB), up 2.09%
Losing
- SPDR® Nuveen S&P High Yield Municipal Bond ETF (HYMB), down -0.28%
- American Century Inflation-Adjusted Bond Fund (AIARX), down -1.03%
- Invesco Rochester® New York Municipals Fund (RMUNX), down -1.13%
- ProShares Short 20+ Year Treasury (TBF), down -2.68%
Foreign Equity Strategies
South Korean equity strategies continued to lead the way, while European equities struggled over the rolling month.
Winning
- iShares MSCI South Korea ETF (EWY), up 20.66%
- Delaware Emerging Markets Fund (DEMRX), up 16.73%
- Causeway Emerging Markets Fund (CEMIX), up 7.31%
- iShares MSCI Taiwan ETF (EWT), up 6.96%
Losing
- Vanguard International Dividend Appreciation Index Fund (VIAAX), down -1.9%
- Fidelity® SAI Japan Stock Index Fund (FSJPX), down -2%
- Xtrackers MSCI Europe Hedged Equity ETF (DBEU), down -5.36%
- WisdomTree Europe Hedged Equity Fund (HEDJ), down -5.76%
Foreign Fixed Income Strategies
Several international treasury and emerging market debt strategies continued to post marginal gains for the rolling month.
Winning
- iShares International Treasury Bond ETF (IGOV), up 2.42%
- MFS Emerging Markets Debt Fund (MEDIX), up 1.94%
- Vanguard Emerging Markets Bond Fund (VEMBX), up 1.79%
- SPDR® Bloomberg Barclays International Treasury Bond ETF (BWX), up 1.7%
- Eaton Vance Emerging Markets Debt Opportunities Fund (EIDOX), up 0.62%
- iShares Core International Aggregate Bond ETF (IAGG), up 0.55%
- VanEck Emerging Markets High Yield Bond ETF (HYEM), up 0.51%
Losing
- T. Rowe Price Dynamic Global Bond Fund (TRDZX), down -0.64%
Alternatives
Among alternatives, gold and contrarian strategies continued to post decent gains over the rolling month.
Winning
- Janus Henderson Contrarian Fund (JCNCX), up 5.03%
- Fidelity® Select Gold Portfolio (FSAGX), up 4.38%
- iShares GSCI Commodity Dynamic Roll Strategy ETF (COMT), up 3.11%
- iShares S&P GSCI Commodity-Indexed Trust (GSG), up 3.04%
Losing
- PIMCO Commodity Real Return Strategy Fund (PCRIX), down -1.52%
- Xtrackers MSCI EAFE Hedged Equity ETF (DBEF), down -4.72%
- PIMCO RAE Worldwide Long/Short PLUS Fund (PWLBX), down -5.03%
- ETFMG Alternative Harvest ETF (MJ), down -12.24%
Sectors
Platinum and semiconductors were up, while real estate and energy suffered over the rolling month.
Winning
- Aberdeen Standard Physical Platinum Shares ETF (PPLT), up 25.24%
- American Beacon ARK Transformational Innovation Fund (ADNYX), up 19.65%
- ARK Fintech Innovation ETF (ARKF), up 18.4%
- Fidelity Advisor® Semiconductors Fund (FIKGX), up 13.46%
Losing
- Fidelity® Select IT Services Portfolio (FBSOX), down -2.8%
- Goldman Sachs MLP Energy Infrastructure Fund (GLPSX), down -2.81%
- AdvisorShares Pure US Cannabis ETF (MSOS), down -6.07%
- iShares Mortgage Real Estate Capped ETF (REM), down -16.67%
Methodology
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.
