Page 24 - ARUBA TODAY

Monday 3 July 2017 BUSINESS
A24

Of Mutual Interest 2Q Review:

Nearly everyone’s a winner: Funds rose again last quarter

By STAN CHOE 3.1 percent for the three creasing part of their daily recent years means stocks nearly $36 billion into for-
AP Business Writer months through Thursday. lives. That helped earnings from Europe and emerging eign stock mutual funds
NEW YORK (AP) — The Here’s a look at some of for tech companies in the markets don’t look as ex- and exchange-traded
good times keep rolling for the trends that shaped the S&P 500 soar more than 20 pensive as their U.S. coun- funds. At the same time,
fund investors. second quarter for fund percent in the first quar- terparts. Growth in corpo- they withdrew $3.1 billion
Nearly every type of fund investors. All performance ter, and technology stock rate profits for companies from U.S. stock funds, ac-
rose last quarter, wheth- figures are for the three funds returned an average around the world is also cording to Morningstar.
er focused on stocks or months through Thursday: of 6.4 percent over the last back on the rise. — Bond funds still aren’t
bonds, U.S. or foreign. dead. Coming into the
Gains were so widespread year, the expectation was
that more than 7,000 of the for bond funds to struggle
roughly 7,600 funds that badly. Interest rates were
Morningstar tracks made on the rise due to expec-
money over the last three tations of faster economic
months. The nearly univer- growth and inflation. And
sal climb for funds means rising rates mean price
many retirement accounts drops for the bonds sitting
and other portfolios are the in the portfolios of bond
largest they’ve ever been. funds. But interest rates
The average 401(k) bal- have instead sunk this year,
ance had already come as inflation remained low
into the second quarter at and economic growth re-
a record level, according mains modest. That helped
to Fidelity. drive the most popular cat-
The good times, though, egory of bond funds, ones
also coincide with some that own intermediate-
increased risks. Stocks are term bonds, to an aver-
near their most expensive age return of 1.6 percent
level in years compared to over the last three months.
their earnings. And bonds, They’ve done better than
which are supposed to be that just four times in the
the safe part of a portfolio, last 17 quarters.
are at risk for losses if interest A dollar bill is taped to a trader’s computer screen at the New York Stock Exchange. The good — Commodity funds were
rates rise, as many econo- times keep rolling for fund investors. As of late June 2017, nearly every type of fund logged gains outliers. Among the rela-
mists expect will happen over the three months prior, with technology and foreign stock funds among the top performers. tively few losers last quarter
eventually. Some analysts Even bond funds are on pace to deliver returns rivaling their best in recent years. were funds that focus on
(AP Photo/Mark Lennihan)
warn market swings will get oil and other commodities.
bigger once central banks The price of crude contin-
around the world follow — Anything growing quick- three months. A resurgence for the euro ues suffer from estimates
the Federal Reserve’s lead ly, or with the potential to Funds that focus on growth and other currencies that wells around the
and dial back on stimulus do so, was hot. stocks more broadly, in- against the dollar last quar- world are producing more
and raise interest rates. The economy is still stuck cluding those in the health ter likewise boosted foreign oil than customers need.
For now, though, investors in a lackluster pace, and care and other industries, stocks. It meant each euro Crude dropped below
have been basking in the its growth downshifted to were also strong. Large- rise in a French stock’s $43 per barrel in late June,
upside. Corporate profits 1.4 percent in the first three cap growth stock funds re- price was worth more in down from roughly $50 a
are back on the upswing, months of the year from 2.1 turned 4.9 percent, for ex- dollar terms than before. year ago.
which drove stock prices percent in last year’s final ample, versus 1.8 percent The most popular type of Funds that own energy
higher around the world, quarter. With strong growth for large-cap value stock foreign stock fund, ones stocks lost an average of
and continued low interest scarce, investors bid up the funds. that hold a mix of large- 12.1 percent, and ETFs that
rates helped push bond stocks that are capable of — Foreign stock funds were cap stocks, returned an try to track the price of
funds. providing it. Technology popular. average of 5.9 percent. crude had similar drops.
The largest mutual fund by companies are expected U.S. stocks have been the That’s more than double ETFs that track gold also
assets, and one that’s the to have some of the stron- world’s leaders for years. the 2.8 percent for their lost ground, as low infla-
centerpiece of many re- gest gains in earnings this But more dollars have re- U.S. counterparts. tion dulled the appeal of
tirement portfolios, closed year. Not only are busi- cently flowed into funds Investors have seen the the metal as an invest-
out its seventh straight nesses looking to use tech- focused on stocks outside split in performance and ment. The SPDR Gold Trust,
quarter of gains. Van- nology to improve their U.S. borders. moved their money in pur- which trades under the
guard’s Total Stock Mar- productivity, consumers That’s partly because for- suit of it. During May, for ex- symbol “GLD,” slipped 0.9
ket Index fund returned are also making it an in- eign stocks’ struggles in ample, investors plugged percent.q