This week, U.S. equity markets faced turbulence as the S&P 500 fell 1.2%, the Dow Jones Industrial Average slipped 0.4%, and the Nasdaq declined 2.4%.

Pressure came from rising Treasury yields and diminishing confidence in near-term interest rate cuts by the Federal Reserve. Inflation remained persistent, with core CPI showing slight acceleration. Coupled with hawkish comments from Fed officials, these factors dampened hopes for a September rate cut. Corporate earnings added to the unease, with Walmart missing profit expectations, raising concerns about consumer resilience.

Looking ahead, markets are preparing for a pivotal week centered on Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium, which could reshape expectations for monetary policy and rate-cut timing. Nvidia’s upcoming earnings report, projected to show approximately 48% revenue growth, is viewed as a critical gauge for the broader technology and AI-driven market rally. Additionally, global developments—including easing tensions in Ukraine and political strains in Japan—may affect bond yields and investor risk sentiment.

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

The broader markets continued to be in the positive territory for the rolling month.

Some healthcare strategies recovered and posted solid gains for the rolling month, while real estate and international growth strategies struggled.

U.S Equity Strategies

Several small and mid cap strategies posted robust gains over the rolling month.

Winning

• Artisan Mid Cap Fund (APHMX), up 4.37%
• Artisan Small Cap Fund (APDSX), up 4.1%
• iShares Russell 2000 Growth ETF (IWO), up 2.1%
• Franklin LibertyQ U.S. Equity ETF (FLQL), up 1.97%

Losing

• SPDR® S&P 400 Mid Cap Value ETF (MDYV), down -1.02%
• Vanguard S&P Mid-Cap 400 Value Index Fund (IVOV), down -1.08%
• Schwab Total Stock Market Index Fund® (SWTSX), down -85.58%
• Schwab 1000 Index® Fund (SNXFX), down -89.9%

Dividend Strategies

Select international dividend strategies posted modest gains over the rolling month.

Winning

• iShares International Select Dividend ETF (IDV), up 3.51%
• Thornburg Investment Income Builder Fund (TIBAX), up 3.18%
• Cullen High Dividend Equity Fund (CHDEX), up 2.65%
• iShares Core High Dividend ETF (HDV), up 2.44%

Losing

• Neuberger Berman Equity Income Fund (NBHAX), down -0.27%
• JPMorgan Equity Premium Income Fund (JEPRX), down -0.42%
• Invesco High Yield Equity Dividend Achievers™ ETF (PEY), down -1.5%
• ProShares S&P 500 Dividend Aristocrats ETF (NOBL), down -28.57%

U.S. Fixed Income Strategies

Long-duration debt strategies continued to post modest gains for the rolling month, while floating rate bond strategies remained under pressure.

Winning

• PIMCO StocksPLUS® Long Duration Fund (PSLDX), up 1.55%
• Blackrock Strategic Municipal Opportunities Fund Of Blackrock Municipal Series Trust (MAMTX), up 1.4%
• iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH), up 0.7%
• iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB), up 0.66%

Losing

• SPDR® Nuveen S&P High Yield Municipal Bond ETF (HYMB), down -0.54%
• PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund (LTPZ), down -0.94%
• Victory Floating Rate Fund (RSFLX), down -1.01%
• AlphaCentric Income Opportunities Fund (IOFCX), down -1.09%

Foreign Equity Strategies

Japanese equity strategies continued to move up, while Indian and South Korean equities continued to struggle over the rolling month.

Winning

• JPMorgan BetaBuilders Japan ETF (BBJP), up 7.99%
• iShares MSCI Japan ETF (EWJ), up 7.84%
• Lord Abbett Developing Growth Fund (LADVX), up 7.35%
• T. Rowe Price Japan Fund (RJAIX), up 6.39%

Losing

• iShares MSCI South Korea ETF (EWY), down -2.29%
• WisdomTree India Earnings Fund (EPI), down -2.56%
• BNY Mellon International Stock Fund (DISYX), down -3.84%
• Franklin International Growth Fund (FNGZX), down -4.16%

Foreign Fixed Income Strategies

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

Winning

• TCW Emerging Markets Income Fund (TGEIX), up 1.8%
• T. Rowe Price Emerging Markets Bond Fund (PREMX), up 1.61%
• iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB), up 1.22%
• VanEck Emerging Markets High Yield Bond ETF (HYEM), up 0.55%

Losing

• PIMCO International Bond Fund Unhedged (PFUNX), down -1.64%
• PIMCO International Bond Fund (“Unhedged”:), down -1.64%
• SPDR® Bloomberg Barclays International Treasury Bond ETF (BWX), down -1.94%
• iShares International Treasury Bond ETF (IGOV), down -2.1%

Alternatives

Among the alternatives, managed volatility and long/short strategies posted decent gains over the rolling month.

Winning

• ETFMG Alternative Harvest ETF (MJ), up 48.59%
• iShares Currency Hedged MSCI Japan ETF (HEWJ), up 9.48%
• PIMCO RAE Worldwide Long/Short PLUS Fund (PWLBX), up 3.48%
• SEI Institutional Investments Trust Global Managed Volatility Fund (SGMAX), up 2.52%

Losing

• Invesco DB Commodity Index Tracking Fund (DBC), down -2.01%
• Vanguard Commodity Strategy Fund (VCMDX), down -2.73%
• Credit Suisse Commodity Return Strategy Fund (CRSAX), down -3.19%
• Aberdeen Standard Bloomberg All Commodity Strategy K-1 Free ETF (BCI), down -3.32%

Sectors

Healthcare equities reversed course and moved up, while real estate strategies struggled over the rolling month.

Winning

• AdvisorShares Pure US Cannabis ETF (MSOS), up 80.94%
• Eventide Healthcare & Life Sciences Fund (ETAHX), up 11.17%
• Franklin Biotechnology Discovery Fund (FTDZX), up 10.29%
• iShares MSCI Global Gold Miners ETF (RING), up 9.27%

Losing

• Cohen & Steers Realty Shares Fund (CSJAX), down -3.52%
• American Beacon ARK Transformational Innovation Fund (ADNYX), down -3.6%
• Aberdeen Standard Physical Palladium Shares ETF (PALL), down -13.38%
• iShares Mortgage Real Estate Capped ETF (REM), down -25%

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.