October 5, 2020

Equity Funds Post Second Consecutive Quarterly Gain in Q3 Despite September Losses

by Tom Roseen.

U.S. investors pushed equity funds to their second consecutive quarter of plus-side performance in Q3 2020 as they cheered improving employment figures and the Federal Reserve Board’s continued commitment to keep interest rates low. Meanwhile, investors were also keeping a wary eye on business and school reopenings and the hoped-for additional round of fiscal stimulus. For Q3 2020, the average equity fund posted a 6.71% return, with Lipper’s World Equity Funds macro-classification (+7.96%) outpacing the other six major equity groups for the first quarter in three. In this segment, I highlight the Q3 and September 2020 performance results for equity mutual funds and ETFs.

  • For Q3 2020, equity funds (+6.71% on average) posted their second consecutive quarter of plus-side returns, almost erasing Q1’s losses.
  • Lipper’s World Equity Funds macro-classification (+7.96%) outperformed the other six broad-based equity groups, followed by U.S. Diversified Equity (USDE) Funds (+7.45%) and Commodities Funds (+7.41%).
  • The Domestic Sector Equity Funds and Global Sector Equity Funds macro-classifications housed four of the five best performing classifications in the equity universe for Q3, with Alternative Energy Funds (+24.67%) posting the strongest return in the equity universe.
  • The World Equity Funds macro-classification was propped up by strong quarterly performance from India Region Funds (+15.29%) and China Region Funds (+12.42%).
  • For September, the average equity fund (-2.61%) posted its first monthly loss since the meltdown in March.

Click here or the Download Full Report link in the upper right-hand column of this page to download the Third Quarter 2020 FundMarket Insight Report: Equity Funds Post Second Consecutive Quarterly Gain in Q3 Despite September Losses.

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