Tuesday, May 30, 2023

TIPS And Commodities Led Returns For Asset Classes Last Week


Inflation-indexed Treasuries and commodities were the top performers last week for the , based on a set of exchange traded funds.

The iShares TIPS Bond ETF (NYSE:) rallied for a fourth straight week, gaining 0.8% over the five trading days through Friday, July 16. The gain lifted the fund to a record high.

TIP Weekly Chart

A close runner-up last week: broadly defined commodities. WisdomTree Continuous Commodity Index Fund (NYSE:), an equal-weighted portfolio, rose 0.6%.

The biggest losses last week: US and foreign developed-market stocks, exceeded only by foreign real estate: Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares (NASDAQ:) slumped 1.8%.

Looking at all the major asset classes in one portfolio, an ETF-based version of the Global Market Index (GMI.F) took a hit last week, falling 1.1%. This unmanaged benchmark (maintained by CapitalSpectator.com) holds all the major asset classes (except cash) in market-value weights via ETF proxies.

ETF Performance Weekly Returns

ETF Performance Weekly Returns

For trailing one-year return, US real estate investment trusts (REITs) edged into the lead over US stocks. Vanguard Real Estate Index Fund ETF Shares (NYSE:) is ahead by 40.6% on a total return basis over the past 12 months. That’s slightly ahead of Vanguard Total Stock Market Index Fund ETF Shares (NYSE:), which is up 38.8% for the past year.

US bonds remain the worst one-year performer for the Vanguard Total Bond Market Index Fund ETF Shares (NASDAQ:) is down 0.6% for the trailing one-year window.

ETF Performance Yearly Returns

ETF Performance Yearly Returns

Ranking the major asset classes via current drawdown shows that most of our proxy ETFs currently enjoy peak-to-trough declines of no more than -5%. US inflation-indexed government bonds (TIP) are the leader on this front via a 0% peak-to-trough decline as of Friday’s close. The main outlier: commodities (GCC), which currently posts a drawdown of -30%-plus.

Drawdown Distribution Histories

Drawdown Distribution Histories

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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