Markets

Emerging Markets Stocks And Bonds Rise As U.S. Shares Sink

Equities and fixed-income securities in emerging markets took the lead last week, posting the biggest gains among the major asset classes, based on a set of exchange-traded products. Meanwhile, US stocks fell for a second week, the first back-to-back weekly losses in three months, based on Vanguard Total Stock Market (NYSEARCA:VTI).

Last week’s top performer: Vanguard FTSE Emerging Markets (NYSEARCA:VWO), which rose 1.5%. Bonds in emerging markets were the second-best performer, posting a 1.0% gain. Last week’s increase lifted VanEck Vectors J.P. Morgan Emerging Market Local Currency Bond (NYSEARCA:EMLC) to its highest close in a year-and-a-half.

The biggest loser last week: foreign corporate bonds. PowerShares International Corporate Bond Portfolio (NYSEARCA:PICB) slumped 0.8%, marking the ETF’s first weekly loss in more than a month.

In the one-year column, foreign equities in developed markets continue to hold the lead. Vanguard FTSE Developed Markets (NYSEARCA:VEA) is ahead by 14.7% for the trailing 12-month change, just slightly ahead of the number-two performer: Vanguard FTSE Emerging Markets (VWO).

Broadly defined commodities remain in last place for the one-year return among the major asset classes. iPath Bloomberg Commodity Index Total Return (NYSEARCA:DJP) is off 4.5% as of last week’s close vs. the year-earlier price.


Total Returns (%) Ranked by 1-year Performance

1wk ytd 1yr 3yr 5yr
Foreign Stocks Devlp’d Mkts (VEA) 0.4 16.6 14.7 3.2 8.5
Emg Mkt Stocks (VWO) 1.5 21.2 14.4 0.9 3.6
US Stocks (VTI) -0.7 8.7 12.9 8.6 13.6
Foreign Junk Bonds (NYSEARCA:IHY) 0.0 9.8 8.3 2.7 6.0
US Junk Bonds (NYSEARCA:JNK) 0.1 4.4 6.5 2.1 4.6
Foreign REITs (NASDAQ:VNQI) 0.2 17.5 5.8 3.3 7.4
Emg Mkt Gov’t Bonds (EMLC) 0.9 12.5 4.5 -1.9 -1.0
Foreign Invest-Grade Corp Bonds (PICB) -0.8 11.0 0.3 -1.5 1.9
US Bonds (NYSEARCA:BND) 0.0 3.2 -0.2 2.6 2.3
US TIPS (NYSEARCA:TIP) -0.3 1.8 -0.3 0.8 0.4
Foreign Gov’t Inflation-Linked Bonds (NYSEARCA:WIP) -0.7 9.6 -0.6 -1.8 0.5
Foreign Devlp’d Mkt Gov’t Bonds (NYSEARCA:BWX) -0.2 9.6 -2.9 -1.3 0.0
US REITs (NYSEARCA:VNQ) 0.1 1.3 -3.5 6.4 8.8
Commodities (DJP) -0.5 -5.6 -4.5 -14.4 -11.6


Note: 3- and 5-year returns are annualized
Data: Quandl.com

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