Insightful Investing

The bailout of Greece was an important driver for the bounce back of international stocks in July. Lazard Emerging Markets (LZOEX) was our top fund in July, gaining back all that it had lost in the last three months with an 11.2% return. Not far behind was Fidelity International Discovery (FIGRX) which picked up 10.3%.

Back in the US, REITs were our leading funds with Neuberger Berman Real Estate (NBRFX) gaining 9.4% and Cohen & Steers Realty Shares (CSRSX) picking up 9.1%.  Westcore Select (WTSLX) was our leading equity fund, earning 8.1%, while Dreyfus Opportunistic Small Cap (DSCVX) gained 7.8%.

Just like their equity counterparts, the best gains in bonds were found overseas.  Payden Emerging Markets Bond (PYEMX) and Loomis Sayles Global Bond (LSGLX) both picked up 4.2% in July. Fidelity High Income (SPHIX) was not too far behind with a gain of  3.5%.

There was a considerable range of returns for ETFs in July. Many of last month’s winners lost ground, while several of last month’s big losers moved forward with a big bounce up. The big winner was iShares MSCI Spain Index (EWP) with recovered a whopping 24% in a single month. With overseas markets experiencing a strong recovery, the iShares MSCI EAFE Index (EFA) picked up 11.6%

The iShares Russell Mid Cap Value (IWS) was the top domestic stock ETF with a gain of 7.5%. Not far behind were SPDR SP Dividend (SDY) and Rydex SP Equal Weight (RSP) which both gained 7.4%.

Just like with Mutual Funds, most the action in bonds was overseas. The SPDR Barclays Capital Intl Corp Bond (IBND) was started just in time to take advantage of the rebound, chalking up a gain of 7.3% in July. A couple more high fliers were  SPDR Barclays Capital Intl Treasury Bond (BWX) gaining 6.1% and SPDR DB Intl Govt Inflation Protected Bond (WIP) picking up 5.4%.

Our August 2010 Mutual Fund Portfolios, ETF Investment Portfolios, and Best Fidelity Funds have been updated through July 2010. The Mutual Funds in our Mutual Fund Portfolios are chosen from our 50 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.

Financial markets around the world bounced back in July as International Stocks led the way after the bailout of Greece, gaining 9.3% last month. Large Cap Stocks gained 7.0% to recover almost all they lost in June. Mid Cap Stocks and Small Cap Stocks had similar returns for the month. The big winner in July was actually Real Estate as REITs picked up 9.7%.

Since investors were no longer chasing high quality US government bonds, domestic bonds only gained 1.0% in July. As investor appetite for risk increased, Emerging Market Bonds picked up 4.5% last month, while High Yield Bonds added 3.6%.