Equity Funds Post Their Strongest Quarterly Returns Since Q4 2010

by: Tom Roseen

For Q1 2019, equity funds (+12.64% on average) posted their strongest quarterly returns in 33 quarters.

Lipper’s U.S. Diversified Equity Funds macro-classification (+13.27%) jumped to the top of the leaderboard for the second quarter in three.

The Sector Equity Funds macro-classification housed two of the five best performing classifications in the equity universe for Q1, with Global Science & Technology Funds (+20.52%) leading the macro-group.

The World Equity Funds macro-classification was propped up by strong returns from China Region Funds (+19.57%).

Mid-cap (+15.98%) and growth-oriented (+17.36%)domestic equity funds outpaced the other capitalization and style groups for Q1.

Photo Source: Nicolas Asfouri/Pool via REUTERS. China's Vice Premier Liu He gestures next to U.S. Treasury Secretary Steven Mnuchin as they pose for a group photo at Diaoyutai State Guesthouse in Beijing, China March 29, 2019.

U.S. investors pushed equity funds to their strongest quarterly gains since Q4 2010 while hanging on every bit of news concerning the U.S./China trade negotiations and Federal Reserve Board meetings during the quarter. For Q1 2019, the average equity fund posted a 12.64% gain, with Lipper’s U.S. Diversified Equity Funds (USDE) macro-classification (+13.27%) outpacing the other three major equity groups for the second quarter in three. In this segment, I highlight the Q1 and March 2019 performance results for equity mutual funds and ETFs.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.