While June was negative across the board for broad asset classes, a stronger April and May led to positive returns for equities and commodities for the quarter.
July was generally positive across the board for broad asset classes, save for commodities and emerging markets. A balanced portfolio still shows positive returns for the month, YTD and 12 months ending July 31, 2015.
Even with many asset classes down for the month, the benefits of diversification are still evident for the month and year-to-date through May.
The April 2015 Asset Class Dashboard shows a strong month for Non-U.S. equities – especially Emerging Markets. The divergence in returns may remind investors of the potential power of diversification, and the importance of sticking with asset classes that underperformed in prior periods.
A hypothetical balanced index portfolio held up well in the first quarter of 2015.
Improved sentiment in Europe helped non-U.S. stocks (Russell Developed ex-U.S. Large Cap Index) outpace U.S. equities (Russell 3000® Index) in February. Other asset classes held their own, too.
The divergence of asset class returns can be a good reminder for investors of the benefits of diversification.