Asset Class Scoreboard: May 2023

While most major asset classes struggled in May, U.S. stocks managed to eke out small gains, driven by strength in large tech companies.

Past performance is not indicative of future results.

Hedge funds and bonds both posted small losses for the month. Hedge funds returned -0.65% while bonds declined 1.16% according to the data. Despite the monthly weakness, both are still up around 2.5% for the year thanks to their low volatility nature.

Real estate and commodities were hit particularly hard in May. Real estate declined 4.03% on weakness in commercial and residential properties. Commodities suffered large losses across the board, falling 6.23% for the month. For the year, commodities are now down a staggering 12.05%.

World stocks underperformed U.S stocks, falling 3.74% in May. Emerging markets failed to keep pace with strength in U.S. large caps. For the year, world stocks are up a more modest 5.10% compared to a 9.69% gain for U.S. stocks.

The star performer in May was managed futures, returning 2.30% as trend-following strategies benefited from increased volatility. However, managed futures are still down 1.17% year-to-date, struggling to keep up in the bull market environment.

In summary, May showed a divergence between U.S. stocks, which continued to climb the “wall of worry,” and most other asset classes which suffered from concerns over the outlook for global growth and trade tensions.

Past performance is not indicative of future results.

Sources: Managed Futures = SocGen CTA Index,
Cash = US T-Bill 13 week coupon equivalent annual rate/12, with YTD the sum of each month’s value,
Bonds = Vanguard Total Bond Market ETF (NYSEARCA:BND),
Hedge Funds = IQ Hedge Multi-Strategy Tracker ETF (NYSEARCA:QAI)
Commodities = iShares S&P GSCI Commodity-Indexed Trust ETF (NYSEARCA:GSG);
Real Estate = iShares U.S. Real Estate ETF (NYSEARCA:IYR);
World Stocks = iShares MSCI ACWI ex-U.S. ETF (NASDAQ:ACWX);

All ETF performance data from Y Charts

The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

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