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 (VTI).
Last week’s top performer: Vanguard FTSE Emerging Markets (VWO), which rose 1.5%. Bonds in emerging markets were the second-best performer, posting a 1.0% gain. Last week’s increase lifted Van Eck Vectors JP Morgan Emerging Market Local Currency Bond (EMLC) to its highest close in a year-and-a-half.
The biggest loser last week: foreign corporate bonds. PowerShares International Corporate Bond Portfolio (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 (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 (DJP) is off 4.5% as of last week’s close vs. the year-earlier price.
| 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 (IHY) | 0.0 | 9.8 | 8.3 | 2.7 | 6.0 |
| US Junk Bonds (JNK) | 0.1 | 4.4 | 6.5 | 2.1 | 4.6 |
| Foreign REITs (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 (BND) | 0.0 | 3.2 | -0.2 | 2.6 | 2.3 |
| US TIPS (TIP) | -0.3 | 1.8 | -0.3 | 0.8 | 0.4 |
| Foreign Gov’t Inflation-Linked Bonds (WIP) | -0.7 | 9.6 | -0.6 | -1.8 | 0.5 |
| Foreign Devlp’d Mkt Gov’t Bonds (BWX) | -0.2 | 9.6 | -2.9 | -1.3 | 0.0 |
| US REITs (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