This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

U.S. Equity Funds On Top In May, Morningstar Canada Data Show

Stocks in this article: MORN

TORONTO, June 4, 2013 /CNW/ - Solid performance in U.S. stock markets, combined with a surging greenback, produced strong gains for U.S. equity funds sold in Canada during the month of May. This also reflected positively on other fund categories that have heavy allocations to U.S. stocks. Meanwhile, domestic equity funds were back in the black after producing negative returns in April. Twenty-six of the 43 Morningstar Canada Fund Indices had positive results for the month, including increases of more than 2% for 11 of the 22 equity fund categories, according to preliminary performance data released today by Morningstar Research Inc. ( Morningstar Canada), a subsidiary of independent investment research provider Morningstar, Inc.

The top-performing fund index in May was the one that measures the aggregate performance of funds in the U.S. Small/Mid Cap Equity category with a 4.9% increase for the month, followed closely by the index that tracks the U.S. Equity category with 4.8%. While the S&P 500 Index of U.S. large-cap stocks did well with a 2.3% return for the month, currency effects had a bigger impact for Canadian investors as the U.S. dollar appreciated 2.7% versus the loonie.

"This marks the seventh straight month of gains for the S&P 500 and its longest streak of monthly gains since 2009," said Morningstar Fund Analyst Vishal Mansukhani. "Some of the outperformance can be attributed to the increase in U.S. home sales, a higher-than-expected rise in manufacturing for the month, and the highest U.S. consumer sentiment level in nearly six years. But the main engine behind the strong rally in U.S. equities has been monetary policy easing."

Fund categories that rely on U.S. equities to a large extent were also among the top performers for May. The Morningstar Global Small/Mid Cap Equity Fund Index, of which U.S. stocks are the largest component, increased by 4.4% during the month, while the North American Equity and Global Equity fund indices posted increases of 3.7% and 3.0%, respectively.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs