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Fund Spy

The January Sell-Off and Your Mutual Funds

A look at which funds took it on the chin and which remained unscathed.

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It's been a rough start to the year for the markets. Even after Thursday's rebound, we are seeing a lot of red ink. Through Jan. 14, 2016, the S&P 500 was down 5.9%, the Russell 2000 was down 9.6%, and the MSCI EAFE was down 6%. Outside of high-yield bonds, and those issued by energy companies in particular, bonds have done pretty much what you would have expected them to do in a volatile market: provide some diversification.

The Barclays U.S. Aggregate Bond Index was up 0.93% through Thursday. The Barclays Municipal Index also was positive, and most high-quality taxable-bond funds and indexes were up as well; Vanguard Intermediate-Term Investment-Grade (VFICX), a reasonable proxy for the higher-quality end of the credit spectrum, was up about 0.8%.

Russel Kinnel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.