Global Markets Rally in July, Led by US Real Estate and Foreign Property Shares

Strategic Insights -

The major asset classes, excluding commodities, experienced a strong rally in July, with US real estate investment trusts (REITs) and foreign property shares leading the charge. The Vanguard Real Estate ETF (VNQ) surged 7.9%, marking its third consecutive monthly advance. Global property shares, as represented by the Vanguard Global Real Estate ETF (VNQI), posted a 5.0% gain, making it the second-best performer among the major asset classes. US stocks and bonds also continued their upward trend, with fixed income outperforming equities for the first time since April.

Key Takeaways:

  • US real estate investment trusts (REITs) led the rally in July, rising 7.9% as represented by the Vanguard Real Estate ETF (VNQ).
  • Global property shares, as represented by the Vanguard Global Real Estate ETF (VNQI), posted a 5.0% gain, making it the second-best performer among the major asset classes.
  • US stocks continued to outperform, with a 15.7% surge year-to-date, making it the best-performing major asset class.
  • For the first time since April, fixed income (bonds) outperformed equities in July.
  • Commodities (GSG) were the only major asset class to decline in July, falling 2.9%.
  • The Global Market Index (GMI) posted its third consecutive monthly gain, rising 2.3% in July.
  • GMI is up 10.7% year-to-date, with US stocks (VTI) being the clear leader.

Statistics:

  • Vanguard Real Estate ETF (VNQ) rose 7.9% in July.
  • Vanguard Global Real Estate ETF (VNQI) posted a 5.0% gain in July.
  • United States stocks (VTI) are up 15.7% year-to-date.
  • Commodities (GSG) fell 2.9% in July.
  • Global Market Index (GMI) is up 10.7% year-to-date.
  • For the one-year window, GMI continues to lag behind US stocks (VTI) and US bonds (BND).

Sources:

  • CapitalSpectator.com
  • Vanguard Real Estate ETF (VNQ)
  • Vanguard Global Real Estate ETF (VNQI)
  • BloombergTerminal.com
  • Learn To Use R For Portfolio Analysis by James Picerno, published on Amazon.com
  • Quantitative Investment Portfolio Analytics In R: An Introduction To R For Modeling Portfolio Risk and Return by James Picerno