Most Asset Classes Rebound in March
James Picerno | Apr 03, 2023 07:31AM ET
Asset classes made a comeback in March, led by inflation-indexed government bonds ex-US, based on a set of ETF proxies. The downside outlier: real estate shares in the US and around the world.
The performance leader last month: PDR® FTSE International Government Inflation-Protected Bond ETF (NYSE:WIP), which rose 5.2%, more than recovering from the previous month’s loss. The gain marks WIP’s strongest month since last November and lift’s the fund’s year-to-date gain to 5.9%, the third-best rally so far in 2023 for the major asset classes.
The majority of global markets also posted gains in March, with the exception of a slight loss for broadly defined commodities (GSG) and sharp declines for US and foreign property shares.
Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares (NASDAQ:VNQI) posted last month’s steepest loss, shedding 2.8%. The slide leaves the fund with a modest year-to-date loss. The only other asset class in the red for 2023 is commodities (GSG), which is down 5.2%.
The Global Market Index (GMI) posted a strong rebound in March, rising 2.8%. This unmanaged benchmark (maintained by CapitalSpectator.com) holds all the major asset classes (except cash) in market-value weights and represents a competitive benchmark for multi-asset-class portfolios. GMI is now up an impressive 6.3% year to date.
Reviewing GMI’s performance in context with US stocks (VTI) and Vanguard Total Bond Market Index Fund ETF Shares (NASDAQ:BND) over the past year shows GMI posting middling results. Stocks are modestly trailing GMI over the past year, while bonds are outperforming by a comparatively wide margin.
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.