Mutual Fund Performance and ETF News January 2012
15th January 2012
A strong fourth quarter helped many of mutual funds end the year in the black, but for some funds, in particular those invested overseas, that was not enough to turn the year around. The top rebounder in the 4th quarter was Fidelity Small Cap Discovery (FSCRX) which bounced up 19.2% to finish the year just above break even with a gain of 0.4%. Not far behind was FBR Small Cap Investor (FBRYX) which picked up 18.5% to end the year up 2.3%. Our top equity based mutual fund in 2011 was Neuberger Berman Real Estate (NBRFX) which benefited from a 15.9% rebound last quarter finish with nice 8.3% return in 2011. A couple of other strong performers for the year were Wells Fargo Advantage Growth (SGROX) which earned 7.9% and the Yacktman Fund (YACKX) which added 7.3%.
Our best funds in 2011 were invested in TIPS as Fidelity Inflation-Protected Bond (FINPX) and American Century Infl-Adj Bond (ACITX) both gained 13.0% in 2011. Not too far behind was Invesco Balanced-Risk Allocation (ABRYX) which earned 10.5% thanks to a significant allocation to Bonds. It proved to be a good year for Fidelity Bond Funds as Fidelity New Markets Income (FNMIX) gained 7.9% this year and Fidelity Total Bond (FTBFX) returned 7.4% in 2011.
While it was a tough year for International Mutual Funds, at least our choices were ahead of more than half of their competition. Our best performers in 2011 were Westcore International Small Cap (WTIFX) which lost (5.7%), Fidelity International Growth (FIGFX) which fell (8.9%) and Matthews Asia Dividend (MAPIX) which fell (10.0%).
Amazingly, our best performning ETFs in the fourth quarter of 2011 did not gain enough to finish the year in the black. SPDR Homebuilders (XHB) returned 29.0% for the quarter, but actually lost (0.1%) for the year and iShares S&P SmallCap 600 Value (IJS) picked up 18.4% last quarter but still lost (1.7%) for the year. Our best performing Bond ETF for the quarter was iShares iBoxx High Yield Corporate Bond (HYG) gained 10.0% last quarter, but iShares Barclays 20+ Year Treas Bond (TLT) on the other hand was the bigger winner with a return of 33.6% in 2011.
Our best stock ETFs for the year were SPDR Dow Jones Industrial Average (DIA) which gained 7.7% and SPDR S&P Dividend (SDY) which added 7.1%. Internationally, a couple of ETFs almost showed a profit as PowerShares International Dividend Achievers (PID) lost only (2.4%) and iShares MSCI Malaysia Index (EWM) fell only (2.7%). There was an amazing range of returns across sector ETFs in 2011. While Utilities Sector SPDR (XLU) gained 19.5% and Consumer Staples Sector SPDR (XLP) returned 14.1%, Financial Sector SPDR (XLF) lost (17.1%) and Materials Sector SPDR (XLB) lost (10.7%).
Our January 2012 Mutual Fund Portfolios, ETF Investment Portfolios, and Best Fidelity Funds have been updated through December 2011. The Mutual Funds in our Mutual Fund Portfolios are chosen from our Best Mutual Funds. The ETF’s in our ETF Investment Portfolios are chosen from our List of 100 Best Exchange Traded Funds. The investment performance history of our mutual fund portfolios and ETF investment portfolios are tracked on our investment portfolio performance page.