302 / 708
12
The shocking Brexit vote made June a volatile month.
The S&P 500 gained 0.3% and the Russell 2000 Index
fell 0.1%
.
Stocks were hammered after Britain unex-
pectedly voted to leave the European Union, but it
quickly rallied back close to pre-vote levels. Uncertainty
surrounding the vote and the May jobs report that
indicated U.S. employers added just 38,000 jobs
—
the
worst month since 2010
—
pushed the Federal Reserve
to shelve plans to raise short-term interest rates at its
mid-June meeting.
Defensive yield plays fared the best. The telecom
sector gained 9%, led by
Verizon Communications
VZ
and
AT&T
T. The utilities sector gained 8%, led by
American Water Works
’ AWK 14% and
NextEra
Energy
’s NEE 9% gains.
Franklin Utilities
FKUTX,
which has a Morningstar Analyst Rating of Gold, rose
7%. The consumer staples sector also posted slight
gains in June
—
tobacco firms
Altria
MO and
Reynolds
American
RAI both gained more than 9%.
On the flip side, financials was one of the worst per-
forming sectors in June, losing 2%. Several banks such
as
SVB Financial
SIVB and
Comerica
CMA fell more
than 12%.
Davis Financial
RPFGX fell 4%. The techno-
logy sector also posted a loss of 2%
—
IT services firms
Alliance Data Systems
ADS and
Global Payments
GPN lost more than 8%. The price of Brent crude ended
the month slightly down in June
—
its first down month
since January
—
ending the month at $49.68 per barrel.
The energy sector still gained 3% during the month;
Neutral-rated
Vanguard Energy
VGENX gained about 4%.
Overseas markets posted mixed results in June. Euro-
pean stocks dropped 3.4% and are now down more
than 4% for the year. Irish, Spanish, and Italian stocks
all dropped more than 9%. Gold-rated
Oakmark Inter-
national
OAKIX fell nearly 7% because of a big
weighting in European financials. Emerging-markets
stocks gained 4%.
K
Contact Andrew Daniels at
andrew.daniels@morningstar.comTotal Return
%
Through
A N N U A L I Z E D
06-30-16
1Mo YTD 3Yr
5Yr
10Yr
Benchmark Performance
Brexit Hits Europe Hard,
but U.S. Rebounds
Market Overview
|
Andrew Daniels
Large Growth
-1.5 -1.9 10.6 10.0 7.2
Large Blend
-0.2 2.2 9.4 10.1 6.4
Large Value
0.0 4.0 8.0 9.4 5.5
Mid-Cap Growth
-0.8 0.0 8.2 7.9 6.8
Mid-Cap Blend
-0.8 2.8 7.6 8.3 6.4
Mid-Cap Value
-0.8 4.9 7.8 8.8 6.5
Small Growth
-0.1 -0.7 6.5 7.3 6.6
Small Blend
-0.4 3.0 6.4 7.6 5.9
Small Value
-0.5 4.6 5.9 7.7 5.7
Allocation—30% to 50% Equity 1.0 4.3 4.3 4.7 4.6
Allocation—50% to 70% Equity 0.5 3.2 5.9 6.1 5.2
Allocation—70% to 85% Equity 0.2 2.7 6.1 6.1 4.7
Communications
2.3 8.3 8.3 7.4 5.3
Financial
-5.0 -5.2 4.8 7.4 1.3
Global Real Estate
2.5 6.2 6.4 6.3 3.1
Health
-2.0 -9.4 15.0 15.6 11.2
Natural Resources
2.2 14.5 -3.6 -4.9 -0.2
Equity Precious Metals
22.4 95.5 8.4 -11.1 0.0
Real Estate
5.9 10.5 12.1 11.2 6.4
Technology
-2.1 -2.1 12.8 9.4 8.4
Utilities
5.7 19.5 10.6 10.1 7.6
S&P 500
0.3 3.8 11.7 12.0 7.3
S&P MidCap 400
0.4 7.9 10.5 10.5 8.6
Russell 2000
0.0 2.4 7.3 8.4 6.3
Diversified Pacific/Asia
2.1 2.1 4.3 3.6 3.4
Diversified Emerging Mkts
3.6 6.2 -1.3 -3.2 3.2
Europe Stock
-4.6 -5.4 2.4 2.2 2.5
Foreign Large Blend
-2.6 -3.0 1.7 1.1 1.5
Foreign Large Growth
-2.1 -2.3 3.2 2.5 2.9
Foreign Large Value
-3.1 -3.0 0.7 0.3 0.5
Foreign Small/Mid Growth
-3.1 -3.0 5.2 4.8 4.7
Foreign Small/Mid Value
-3.5
-1.4
3.6
2.2
2.6
World Stock
-1.1 0.4 5.6 5.3 4.3
MSCI World
-1.1 0.7 6.9 6.6 4.4
MSCI Emerging Markets
4.6 7.6 -1.7 -4.4 2.9
MSCI EAFE
-2.4 -3.0 2.1 1.6 1.5
MSCI Europe
-4.4 -5.1 2.0 1.0 1.5
MSCI Latin America
11.3 24.0 -10.7 -12.7 -0.4
MSCI Pacific
-1.4 -2.9 2.2 3.0 1.7
High Yield Bond
0.7 6.4 2.9 4.6 6.0
Inflation-Protected Bond
1.8 5.2 1.2 1.5 3.7
Intermediate-Term Bond
1.6 4.9 3.6 3.6 4.8
Muni National Long
1.7 4.5 5.8 5.7 4.6
World Bond
2.2 6.6 2.1 1.9 4.5
BarCap US Agg Bond TR USD 1.9 5.3 4.1 3.7 5.0
BofAML US HY Master II TR 1.1 9.3 4.2 5.7 7.4
BarCap Municipal TR USD
1.6 4.3 5.6 5.3 5.1