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Markets Continue To Rally, With Exception Of Treasuries, Commodities

Published 02/06/2017, 06:41 AM
Updated 07/09/2023, 06:31 AM
EMLC
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Prices continued to rise last week in most markets around the world, based on a set of ETFs representing the major asset classes. Leading the winners during the five trading days through Feb. 3: emerging-market bonds. The only losers last week: inflation-indexed US Treasuries and broadly defined commodities.

VanEck Vectors JP Morgan Emerging Market Local Currency Bond (NYSE:EMLC) topped the leaders list last week with a 1.9% total return. The robust gain marks the seventh straight weekly advance for the ETF.

The iPath Bloomberg Commodity (NYSE:DJP) posted the biggest loss last week, easing 0.2%. The latest dip is the third consecutive weekly setback for the ETN.

The generally rising tide dispensed another gain for an ETF-based version of the Global Markets Index (GMI.F). This investable, unmanaged benchmark that holds all the major asset classes in market-value weights climbed 0.4% last week. The benchmark has enjoyed positive weekly returns in four of the first five weeks to date in 2017.

Major Asset Classes ETF Performance

In the one-year column, emerging-market equities continue to hold the lead. Vanguard FTSE Emerging Markets (NYSE:VWO) is up a strong 29.2% for the 12 months through Feb. 3. In fact, VWO has been the top performer for the trailing one-year window in every weekly update so far this year.

The biggest one-year loser at the moment: foreign government bonds in developed markets. SPDR Barclays International Treasury Bond (NYSE:BWX) is off 0.7% for the 12 months through Friday.

Meanwhile, GMI.F’s one-year trend remains encouraging, posting a 13.5% total return through Feb. 3.

For some perspective on what to expect from the major asset classes in the long run, here’s the current update for risk premia projections.

Major Asset Classes-ETF Performnance

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