October 7, 2021

Government/Treasury and Domestic Taxable Funds Outperform Tax-Exempt and Non-Domestic Funds

by Jack Fischer.

Fixed income funds posted a return of negative 0.04% on average during the third quarter of 2021, marking the second negative quarterly performance this year. Taxable bond funds (+0.09%) outshined tax-exempt bond funds (-0.39%) for the second straight quarter and the fifth time over the last six quarters. Municipal bond funds and non-domestic funds were detractors from overall performance in Q3 after leading the charge in Q2.

In total, only 17 of the 51 Lipper fixed income classifications ended the quarter with plus-side performance. Government/Treasury funds (+0.47%) and general domestic taxable fixed income funds (+0.41%) were the two top-performing macro groups.

Summary:

  • Fixed income funds posted a return of negative 0.04% on average during the third quarter of 2021, marking the second negative quarterly performance this year.
  • Taxable bond funds (+0.09%) outshined tax-exempt bond funds (-0.39%) for the second straight quarter and the fifth time over the last six quarters.
  • The top three Lipper classifications over the quarter were Inflation Protected Bond Funds (+1.54%), Loan Participation Funds (+0.91%), and High Yield Funds (+0.70%).
  • The worst-performing classifications on average were Emerging Markets Local Currency Debt Funds (-2.87%), International Income Funds (-1.35%), and Alternative Currency Strategies Funds (-1.01%).

Click here or the Download Full Report link in the upper right-hand column of this page to download the Third Quarter 2021 FundMarket Insight Report: Government/Treasury and Domestic Taxable Funds Outperform Tax-Exempt and Non-Domestic Funds.

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