Weekly returns
The total returns for U.S. equity size and style as of June 16, 2023, were as follows: In the past week, large-cap stocks had a return of 2.0%, medium-cap stocks had a return of 0.3%, and small-cap stocks had a return of 0.8%. The year-to-date returns showed that large-cap stocks had a return of 4.3%, medium-cap stocks had a return of 2.2%, and small-cap stocks had a return of 12.2%. In terms of style, value stocks had a return of 4.3% year-to-date, core stocks had a return of 15.6%, and growth stocks had a return of 27.6%.
In the index/market total returns, the Dow Jones Industrial Average had a return of 1.3% in the past week and a year-to-date return of 4.6%. The NASDAQ Composite Index had a return of 3.3% in the past week and a year-to-date return of 31.4%. The S&P 500 Index had a return of 2.6% in the past week and a year-to-date return of 15.8%. The MSCI EAFE Index had a return of 2.9% in the past week and a year-to-date return of 14.1%. The Cboe Volatility Index had a return of -2.2% in the past week and a year-to-date return of -37.8%.
In the international/developed markets, Europe had a return of 3.1% in the past week and a year-to-date return of 15.4%. France had a return of 4.0% in the past week and a year-to-date return of 19.1%. Germany had a return of 4.1% in the past week and a year-to-date return of 20.5%. Italy had a return of 4.1% in the past week and a year-to-date return of 23.0%. Japan had a return of 2.0% in the past week and a year-to-date return of 16.4%. Spain had a return of 3.8% in the past week and a year-to-date return of 20.8%. Switzerland had a return of 2.0% in the past week and a year-to-date return of 13.1%. The U.K. had a return of 2.8% in the past week and a year-to-date return of 10.9%.
In the emerging markets, China had the highest return in the past week with 4.8% and a year-to-date return of 1.4%. Korea had a return of 1.0% in the past week and a year-to-date return of 21.2%. Mexico had a return of 1.6% in the past week and a year-to-date return of 30.4%. Taiwan had a return of 3.2% in the past week and a year-to-date return of 24.1%. Brazil had a return of 2.6% in the past week and a year-to-date return of 17.6%. India had a return of 2.6% in the past week and a year-to-date return of 4.0%. Indonesia had a return of -0.6% in the past week and a year-to-date return of 10.6%.
Looking at the S&P 500 sectors, information technology had the highest return in the past week with 4.4% and a year-to-date return of 41.6%. Communication services had a return of 2.1% in the past week and a year-to-date return of 36.8%. Consumer discretionary had a return of 3.2% in the past week and a year-to-date return of 29.9%. Energy had a negative return of -0.7% in the past week and a year-to-date return of -6.6%. Financials had a return of 1.2% in the past week and a year-to-date return of -1.4%. Healthcare had a return of 1.5% in the past week and a year-to-date return of -2.3%. Industrials had a return of 3.0% in the past week and a year-to-date return of 7.8%. Materials had a return of 3.4% in the past week and a year-to-date return of 5.6%. Real estate had a return of 1.7% in the past week and a year-to-date return of 2.8%. Utilities had a return of 1.4% in the past week and a year-to-date return of -3.8%.
For U.S. fixed-income style total returns, the high credit quality category had a return of 0.0% in the past week and a year-to-date return of 1.6%. The medium credit quality category had a return of -0.1% in the past week and a year-to-date return of 1.9%. The low credit quality category had a return of 0.5% in the past week and a year-to-date return of 4.4%. In terms of interest-rate sensitivity, the high sensitivity category had a return of 1.6% year-to-date. The medium sensitivity category had a return of 1.4%, and the low sensitivity category had a return of 3.5%.
The U.S. Treasury bond yields as of June 16, 2023, were as follows: The 2-year bond yield was 4.72%, which increased by 30 basis points (bps) year-to-date. The 10-year bond yield was 3.78%, which decreased by 10 bps year-to-date. The 30-year bond yield was 3.86%, which decreased by 11 bps year-to-date. The 2-10 spread was -94 bps, indicating a decrease of 40 bps year-to-date. The 10-30 spread was 8 bps, showing a decrease of 1 bps compared to the prior year-end.
In the U.S. bond sector, the total returns for the past week were as follows: The aggregate bond sector had a return of 0.2% and a year-to-date return of 2.2%. Bank loans had a return of 0.6% in the past week and a year-to-date return of 5.0%. Convertible bonds had a return of 1.7% in the past week and a year-to-date return of 8.3%. Corporate bonds had a return of 0.4% in the past week and a year-to-date return of 3.2%. High-yield bonds had a return of 0.5% in the past week and a year-to-date return of 5.4%. Mortgage-backed securities (MBS) had a return of 0.3% in the past week and a year-to-date return of 2.3%. Municipal bonds had a return of 0.2% in the past week and a year-to-date return of 2.4%. Preferred stocks had a negative return of -1.2% in the past week, but a year-to-date return of 10.4%. Treasury inflation-protected securities (TIPS) had a return of 0.1% in the past week and a year-to-date return of 2.0%. Treasury bonds had a return of 0.0% in the past week and a year-to-date return of 1.8%.
In the global bond market, the total returns for the past week were as follows: Emerging market local bonds had a return of 1.1% and a year-to-date return of 8.4%. Emerging market bonds in U.S. dollars had a return of 0.7% in the past week and a year-to-date return of 3.4%. The global aggregate bond market had a return of 0.4% in the past week and a year-to-date return of 2.0%. The global aggregate bond market excluding the U.S. had a return of 0.4% in the past week and a year-to-date return of 1.8%. The multiverse bond market had a return of 0.4% in the past week and a year-to-date return of 2.1%.
In the commodities market, the total returns for the past week were as follows: The Bloomberg Commodity Index had a return of 4.2%, but a year-to-date return of -4.7%. Oil (WTI) had a return of 2.4% in the past week and a year-to-date return of -8.6%. Gold had a negative return of -0.2% in the past week, but a year-to-date return of 7.4%.
In the currency market against the U.S. dollar, the total returns for the past week were as follows: Emerging market currencies had a return of 0.4% and a year-to-date return of 5.1%. The Australian dollar had a return of 1.9% in the past week and a year-to-date return of 1.3%. The Canadian dollar had a return of 0.9% in the past week and a year-to-date return of 2.7%. The Swiss franc had a return of 0.9% in the past week and a year-to-date return of 3.5%. The euro had a return of 1.6% in the past week and a year-to-date return of 2.4%. The British pound had a return of 1.8% in the past week and a year-to-date return of 6.5%. The Japanese yen had a negative return of -1.5% in the past week and a year-to-date return of -6.7%.
Considering the above observations, an investor may consider overweighting small-cap stocks, growth stocks, and technology-related investments. Additionally, a diversified exposure to international markets, particularly in European and emerging markets, might be beneficial.
Past week:
U.S. Equity Size and Style Total Returns as of June 9, 2023: In the past week, the total returns for U.S. equities varied across different size and style categories. Large-cap stocks had a return of 0.4%, while medium-cap stocks experienced a return of 1.5%, and small-cap stocks gained 2%. Among the style categories, value stocks had a return of 2.3%, core stocks gained 12.6%, and growth stocks saw the highest return at 23.6%. Year-to-date, large-cap stocks had a return of 2.3%, medium-cap stocks gained 1.9%, and small-cap stocks saw returns of 1.7%. In terms of style, value stocks had a return of 12.6%, core stocks gained 4.9%, and growth stocks had the highest return at 11%.
Index/Market Total Returns as of June 9, 2023: The major U.S. market indices had varied total returns as of June 9, 2023. The Dow Jones Industrial Average had a return of 0.4% in the past week and 3.3% year-to-date. The NASDAQ Composite Index experienced a return of 0.2% in the past week and a significant year-to-date return of 27.2%. The S&P 500 Index had a return of 0.4% in the past week and 12.8% year-to-date. The MSCI EAFE Index, which represents international developed markets, gained 0.6% in the past week and had a year-to-date return of 10.9%. The Cboe Volatility Index, which measures market volatility, saw a decrease of 5.5% in the past week but had a substantial decline of 36.4% year-to-date.
International/Developed Markets: In the international developed markets, the EAFE index had a return of 0.6% in the past week and a year-to-date return of 10.9%. Among specific countries, France and Germany experienced slight declines of -0.4% in the past week, but had year-to-date returns of 14.5% and 15.8% respectively. Italy saw a small increase of 0.3% in the past week and had a year-to-date return of 18.1%. Japan had a significant return of 2.2% in the past week and a year-to-date return of 14.1%. Spain and the U.K. had stable returns in the past week, with year-to-date returns of 16.4% and 7.9% respectively.
Emerging Markets: Emerging markets experienced mixed returns in the past week. The emerging markets index had a return of 1.9%, while Brazil had the highest return at 5.8%. China saw a modest return of 1.8%, while India had a minimal return of 0.1%. Indonesia had a return of 1.1%, Korea gained 2.3%, and Mexico saw significant gains of 3.9%. Russia's data was not available. Taiwan had a return of 0.9% in the past week and a strong year-to-date return of 20.3%.
S&P 500 Sectors: The various sectors within the S&P 500 index had different returns in the past week and year-to-date. The communication services sector experienced a decline of -0.4% in the past week, but had an impressive year-to-date return of 33.9%. The consumer discretionary sector gained 2.5% in the past week and had a strong year-to-date return of 25.9%. Consumer staples declined by -0.5% in the past week and had a negative year-to-date return of -1%. The energy sector saw an increase of 1.8% in the past week, but had a negative year-to-date return of -6%. Financials had a gain of 1.1% in the past week, but a negative year-to-date return of -2.6%. Healthcare experienced a slight decline of -0.1% in the past week and had a negative year-to-date return of -3.7%. The industrials sector gained 1.4% in the past week and had a year-to-date return of 4.7%. The information technology sector declined by -0.7% in the past week, but had a strong year-to-date return of 35.5%. Other sectors, such as materials, real estate, and utilities, had mixed returns.
U.S. Fixed-Income Style Total Returns as of June 9, 2023: In the fixed-income market, the total returns varied based on different styles. High credit quality bonds had a return of 0.0% in the past week, while medium credit quality bonds declined by -0.1%, and low credit quality bonds gained 0.3%. Year-to-date, high credit quality bonds gained 1.5%, medium credit quality bonds gained 1.8%, and low credit quality bonds had a return of 4.7%. The interest-rate sensitivity of limited, moderate, and extensive bond portfolios also had varying returns.
U.S. Treasury Bond Yields as of June 9, 2023: As of June 9, 2023, the yields on U.S. Treasury bonds were as follows: the 2-year bond had a yield of 4.62%, the 10-year bond had a yield of 3.74%, and the 30-year bond had a yield of 3.88%. The spread between the 2-year and 10-year bonds was -88 basis points (bps), and the spread between the 10-year and 30-year bonds was 14 bps. Comparing to the previous year-end, the 2-year bond yield had increased by 20 bps, while the 10-year and 30-year bond yields had decreased by 14 bps and 9 bps respectively.
U.S. Bond Sector Total Returns: In the past week, U.S. bond sectors experienced mixed returns. The aggregate bond sector declined by -0.2% while bank loans gained 0.7%, convertible bonds had a return of 1.2%, and high yield bonds saw a modest gain of 0.3%. Corporate bonds declined by -0.5%, and preferred stocks had a notable decline of -0.6%. Mortgage-backed securities (MBS) and Treasury Inflation-Protected Securities (TIPS) had stable returns of 0.0%, while municipal bonds gained 0.1%. Year-to-date, the aggregate bond sector had a return of 2.0%, bank loans gained 4.4%, and convertible bonds had a return of 6.6%. Corporate bonds had a modest return of 2.8%, and high yield bonds gained 4.9%. MBS and TIPS both had a return of 2.0%, while municipal bonds gained 2.1%. Treasury bonds had a return of 1.8%.
Global Bond Total Returns: Global bond markets also experienced mixed returns in the past week. The emerging market local bond sector gained 1.3%, while emerging market bonds in U.S. dollars had a more modest gain of 0.4%. The global aggregate bond index had a stable return of 0.0%, and the global aggregate bond index excluding the U.S. had a slight gain of 0.1%. The multiverse bond index had a stable return of 0.0%. Year-to-date, the emerging market local bond sector gained 7.3%, while emerging market bonds in U.S. dollars had a return of 2.8%. The global aggregate bond index had a return of 1.6%, and the global aggregate bond index excluding the U.S. had a return of 1.3%. The multiverse bond index had a return of 1.7%.
Commodities: Commodity returns varied in the past week. The Bloomberg Commodity Index had a gain of 1.2%, while oil (WTI) declined by -2.0%. Gold had a modest gain of 0.5%. Year-to-date, the Bloomberg Commodity Index had a decline of -8.5%, while oil (WTI) had a significant decline of -10.7%. Gold, on the other hand, had a positive return of 7.7%.
Currencies (USD): Currency markets showed mixed performance against the U.S. dollar in the past week. Emerging market currencies had a slight decline of -0.1%, while the Australian dollar gained 2.0% and the Canadian dollar gained 1.0%. The Swiss franc had a modest gain of 0.6%, and the euro had a slight gain of 0.3%. The British pound had a gain of 0.8%, while the Japanese yen had a modest gain of 0.2%. Year-to-date, emerging market currencies gained 3.9%, while the Australian dollar had a decline of -0.6%. The Canadian dollar gained 1.7%, the Swiss franc gained 2.6%, and the euro had a modest gain of 0.8%. The British pound had a strong return of 4.6%, while the Japanese yen declined by -5.3%.
Based on these trends, the investor might consider: