Morgan Stanley Capital International (MSCI) released its best and worst performing indices for May 2017, basing performance in terms of country, factor, and sector.
In single-country index rankings, the best-performing country was Korea at 8.1%. The worst in that category is Australia, at -3.9%. The All Country World Index (ACWI) returned 2.3% overall. Korea was also the best year-to-date (YTD) performing country at 27.6%. The worst YTD country was Canada at 0.4%. The YTD market index (ACWI) returned 11.3%. Korea forward P/E was also the cheapest, at 9.3. The most-expensive country was Switzerland, with a forward P/E of 17.9. The ACWI forward P/E is 16.
The performance of factor index ratings were driven by momentum, which was at 4.1% for May, and 16% YTD. The lowest-performing factors were May’s enhanced value (1.4%) and the YTD’s high dividend yield (10.1%). The ACWI returned 2.3% in May, and 11.3% YTD. Using the forward P/E, minimum volatility USD is the most-expensive factor with a 19% forward P/E. Enhanced value is the cheapest, with a forward P/E of 9.8. The ACWI forward P/E is 16.
Finally, May’s best-performing sector was utilities at 5.6%. Its worst was energy at -1.5%. The ACWI returned 2.3%. Information technology is the best YTD performing sector at 21.9%, while energy falls to the bottom of the pile at -6.9%. The ACWI has returned 11.3% YTD. Using the forward P/E, real estate was revealed at the most-expensive sector, with a forward P/E of 22. Financials were the cheapest with a forward P/E of 11.8. The market forward P/E is 16.