Commodities led the way higher last week among the major assets classes, based on a set of exchange-traded products. Close behind: emerging-market stocks, the number-two total-return performer for the five trading days through January 13.
The iPath Bloomberg Commodity ETN (NYSE:DJP), a broadly defined measure of the asset class, jumped 1.7% last week. The gain edged out of the 1.4% increase for Vanguard FTSE Emerging Markets (NYSE:VWO), which posted its third consecutive weekly increase.
Last week’s big loser: real estate investment trusts (REITs) in the US. Vanguard REIT (NYSE:VNQ) tumbled 2.0% in the second week of January—the first weekly setback since mid-December.
Last week’s results, however, were generally positive overall, providing lift to 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 inched higher by 0.4% for the week.
In the one-year column, widespread gains continue to dominate the major asset classes. The biggest winner is once again emerging-market equities. VWO’s one-year return (based on 252 trading days) is a sizzling 27.2% through January 13.
The only loser for the past year as of Friday: corporate bonds in foreign markets. PowerShares International Corporate Bond (NYSE:PICB) is off fractionally, slipping roughly 10 basis points for the year through last week’s close.
The overall trend for markets is still solidly positive via GMI.F, which is currently sitting on a strong 13.1% total return for the past year.
For some perspective on what to expect from the major asset classes in the long run, take a look at the current update of risk premia projections.
