U.S. REITs Led Gainers In Mixed Week For Asset Classes
James Picerno | Jul 12, 2021 07:04AM ET
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.
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.
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.
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