Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. REITs Led Gainers In Mixed Week For Asset Classes

By James PicernoStock MarketsJul 12, 2021 07:04AM ET
www.investing.com/analysis/us-reits-led-gainers-in-mixed-week-for-asset-classes-200590961
U.S. REITs Led Gainers In Mixed Week For Asset Classes
By James Picerno   |  Jul 12, 2021 07:04AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The major asset classes delivered a wide range of results in last week’s trading (through Friday, July 9), based on a set of proxy ETFs. US real estate investment trusts (REITs) led the winners while stocks in emerging markets and commodities posted sharp losses.

VNQ rallied 2.5% last week, lifting the fund to a record close.

VNQ Weekly Chart
VNQ Weekly Chart

Last week’s worst performer for the major asset classes: commodities. The equal-weighted GCC slumped 1.9%.

Concerns that the economic rebound may be weaker than expected were a factor weighing on commodities prices. Doubts about the strength and persistence of inflation are another.

Nonetheless, there’s still a raging debate about whether inflation is transitory. Joel Naroff, chief economist at Naroff Economics, prefers to label current conditions as “transitional,” telling The Wall Street Journal: “We’re in a transitional phase right now. We are transitioning to a higher period of inflation and interest rates than we’ve had over the last 20 years.”

Despite losses in several corners of the global markets last week, an ETF-based version of the Global Market Index (GMI.F) managed to edge up 0.2%. This unmanaged benchmark (maintained by CapitalSpectator.com) holds all the major asset classes (except cash) in market-value weights via ETF proxies.

ETF Performance Weekly Returns Chart
ETF Performance Weekly Returns Chart

For the one-year performance window, US stocks continue to lead. VTI is up 43.9% for the trailing 12-month window through Friday’s close.

On the flip side, US bonds (BND) are still in last place for the trailing one-year period, posting a 0.6% loss after factoring in distributions.

ETF Performance Yearly Returns Chart
ETF Performance Yearly Returns Chart

Reviewing the major asset classes via current drawdown shows that most of our proxy ETFs currently enjoy peak-to-trough declines of less than -5%. US stocks (VTI) and US REITs (VNQ) stand out as the slice of global markets that ended last week at record highs (i.e., zero drawdown). The big outlier remains commodities (GCC), which currently reflect a drawdown of -30%-plus.

Drawdown Distribution Histories
Drawdown Distribution Histories
U.S. REITs Led Gainers In Mixed Week For Asset Classes
 

Related Articles

U.S. REITs Led Gainers In Mixed Week For Asset Classes

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email