Commodities, U.S. Stocks Bounced Last Week As Most Markets Fell
James Picerno | Sep 27, 2021 07:40AM ET
In a week of mostly lower prices for the major asset classes, a broad measure of commodities bucked the trend with a solid gain, based on a set of ETFs for the trading week ended Friday, Sep. 24.
The equal-weighted WisdomTree Continuous Commodity Index Fund (NYSE:GCC) rose 1.3% last week. Despite the latest gain, GCC continues to trade in a range and the latest pop doesn’t alter the outlook for more of the same in the near term.
US stocks also rose last week. Vanguard Total Stock Market Index Fund ETF Shares (NYSE:VTI) gained 0.6%. The advance marked the first weekly increase in the past three weeks.
US bonds, by contrast, remained on the defensive as interest rates rose last week. Vanguard Total Bond Market Index Fund ETF Shares (NASDAQ:BND) dropped 0.4%, leaving the fund at its lowest close in over a month.
The rest of the major asset classes retreated. The biggest decline: foreign inflation-linked government fixed-income securities via SPDR FTSE International Government Inflation-Protected Bond ETF (NYSE:WIP), which slumped 1.7% — the fund’s third straight weekly loss.
Despite the widespread losses, a benchmark portfolio that holds all the major asset classes via ETFs was flat last week. The Global Market Index (GMI.F), an unmanaged benchmark (maintained by CapitalSpectator.com) holds all the major asset classes (except cash) in market-value weights via ETF proxies, held steady after two straight weeks of decline.
For the one-year trend, US real estate investment trusts (REITs) are narrowly in the lead. Vanguard Real Estate Index Fund ETF Shares (NYSE:VNQ) is up 42.6% over the past year. That’s slightly ahead of the second-best one-year performer for the major asset classes: US shares via VTI, which is up 41.7% for the trailing one-year period.
The weakest performance for the major asset classes on a one-year basis: foreign government bonds in developed markets. SPDR Bloomberg Barclays International Treasury Bond ETF (NYSE:BWX) is down 1.2% for the past 12 months.
GMI.F’s one-year return: a strong 26.7% gain.
Profiling the major asset classes in terms of current drawdown still shows most markets with low to nil declines relative to their previous peaks. The biggest downside exceptions: commodities (GCC) and stocks and bonds in emerging markets (EMLC and VWO, respectively).
GMI.F’s current drawdown, by contrast, is a modest -1.8% as of last week’s close.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.