Global equities led by emerging markets continued to show strong returns in July, according to independent investing consulting firm NEPC.
Bolstered by comments from the Federal Reserve in its recent meeting, the MSCI EM Index gained 6%, up 25% year-to-date (YTD). Amid a growth recovery in Europe, non-US developed market stocks were also profitable at 2.9%, according to the MSCI EAFE Index.
US equities also performed well at 2.1% for the S&P 500 and 0.7% for the Russell 2000 indices.
At 25.5% and 17.1%, respectively, the MSCI EM and MSCI EAFE YTD performances have trampled the S&P 500’s 11.6% returns.
Due to the oscillation of the Treasury curve—an increase at the front and back-ends while staying flat at the 10-year mark—US fixed income generated mostly positive returns.. The Barclays US Aggregate Bond Index returned 0.4% with most gains from credit and mortgage-backed securities, while the Barclays US Long Treasury Index fell 0.6% in the middle of a small boost in yields towards the end of July. US credit increased once again as spreads compressed further with the Barclays US High Yield Index returning 1.1%—up 6.1% YTD.
WTI Crude prices hit $50 for the first time since May. According to the Bloomberg Community Index, this in conjunction with rises in copper and iron ore helped a 2.3% gain in commodities.
NEPC’s chart for July’s one-month returns can be viewed below.