Major Asset Classes

Markets were mixed in June after two solid monthly gains, based on a set of ETFs. Most of the major asset classes lost ground last month, with a handful of exceptions on the upside, led by US real estate investment trusts. Vanguard Real Estate ETF (VNQ) was the performance leader for the major asset classes in June, posting a 1.7% gain. That was enough to put it well ahead of the pack last month. The majority of the major asset classes fell, which translates into the softest month since the widespread selling in March following the start of the military strikes on Iran. The biggest loser in June: broadly defined commodities (GSG), which tumbled 10.1%. Note, however, that commodities continue to hold the commanding heights for year-to-performance via a 24.0% gain. US stocks (VTI) eased in June, dipping 0.4%, consolidating after leading markets higher for two straight months. Within the US equities space, small-cap stocks (IJR) bucked the trend with a solid gain, jumping 7.3%. US bonds (BND), by contrast, edged higher, extending a mild rebound after a sharp loss in March. Year to date, most markets are up. The exceptions: foreign bonds (BWX and PICB) and global property shares ex-US (VNQI). Bitcoin (GBTC) was exceptionally weak, shedding more than 20% in June, and tumbling by roughly a third so far this year. The back-to-back monthly gains for Global Market Index (GMI) ended in June with a fractional 0.4% loss, weighed down by weak equity markets generally last month. Year to date, however, GMI is holding on to a solid 9.9% gain. GMI is an unmanaged benchmark (maintained by The Capital Spectator) that holds all the major asset classes (except cash) in market-value weights via ETFs and serves as a competitive benchmark for globally diversified, multi-asset-class portfolio strategies.