(PUB) Investing 2015

12

U.S. Stocks Shine While Emerging Markets Tumble Market Overview | Robert Goldsborough

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

07-31-15

1Mo YTD 3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

2.9 7.1 18.4 16.1 8.1 1.5 2.7 16.7 14.7 7.0 0.7 0.8 15.7 13.7 6.3 1.0 7.0 18.3 15.6 8.4 -0.1 2.4 17.4 14.4 7.4 -0.4 1.2 17.6 14.4 7.4 0.3 8.1 18.6 16.5 8.4 -1.6 1.8 16.3 14.1 7.1 -2.4 -0.8 15.4 12.8 6.7 0.6 2.5 11.8 10.5 5.7 0.3 0.9 5.5 6.3 4.7 0.7 1.9 9.9 9.5 5.8 0.7 5.0 11.4 10.9 5.2 0.8 4.5 18.2 11.6 2.8 2.3 1.2 8.8 9.5 4.3 3.3 19.5 32.7 26.8 13.6 -7.6 -9.9 -2.6 0.5 2.6 -18.5 -22.1 -27.1 -19.2 -1.1 5.1 -0.4 9.4 12.7 6.2 1.0 4.8 18.6 14.9 9.0 2.6 -4.4 9.9 11.3 7.3 2.2 3.4 17.6 16.2 7.7 0.1 4.3 18.7 16.3 9.2 -1.1 3.6 18.0 15.3 7.6 -2.3 6.8 11.1 7.6 6.3 -5.4 -3.7 1.6 0.6 6.0 2.5 9.1 14.1 9.2 6.1 0.7 6.7 10.8 7.1 4.8 0.8 7.5 11.2 8.2 5.7 0.3 5.9 10.6 6.6 3.9 0.5 9.6 14.0 11.0 7.6 -1.2 7.1 13.4 8.0 5.4 1.0 4.5 13.6 10.9 6.3 1.8 4.5 14.5 11.7 6.2 -6.3 -4.8 0.2 -0.2 5.7 2.0 8.3 12.3 7.8 4.9 3.1 7.1 13.1 8.3 5.0 -8.4 -15.5 -13.5 -10.8 3.0 -0.1 8.8 10.8 7.5 5.2 -0.5 1.9 5.3 6.8 6.3 0.0 0.1 -1.7 2.4 3.4 0.5 0.5 1.9 3.5 4.3 0.6 0.5 2.7 4.6 4.1

Mid-Cap Growth Mid-Cap Blend Mid-Cap Value

U.S. large caps returned more than 2% in July amid mixed economic data. The Greek bailout helped power markets and reduce uncertainty over Greece’s possible exit from the eurozone. Also fueling U.S. equities were mostly positive housing-sector reports, including decent pending-home sales and existing- home sales data. U.S. crude oil prices plunged by 20% in July, falling from just over $60 a barrel to $47 at month-end. U.S. bond prices were up in July. The U.S.’ top-performing equity sector in July was the utilities sector, which rallied with the decline in bond yields. Also performing well was the consumer staples sector, which rallied about 5% on particular strength from Walgreens Boots Alliance WBA , CVS Health CVS , and Costco COST . The weakest- performing U.S. equity sector was the energy sector, which slid more than 5% from commodity- price declines. Stocks rose slightly in developed foreign markets but again were hammered in emerging markets. The MSCI Emerging Markets Index fell more than 7% on top of meaningful losses in May and June. Brazilian stocks were hard-hit amid forecasts that the country’s economy is headed into a recession and fears of a credit downgrade. Investors also continued to punish Petrobras PBR in the wake of high debt levels, corruption scandals, and government intervention in its investment decisions. DFA Emerging Markets Value DFEVX , a broad-based emerging-markets fund that has a Morningstar Analyst Rating of Silver, fell more than 8% in July. The U.S. bond market rallied in July. Short-term yields rose, but longer-term yields slid meaningfully amid risk-off sentiment driven by declining commodity prices and weakness in China. K Contact Robert at robert.goldsborough@morningstar.com

Small Growth Small Blend Small Value

Aggressive Allocation Conservative Allocation Moderate Allocation

Communications

Financial

Global Real Estate

Health

Natural Resources

Equity Precious Metals

Real Estate Technology

Utilities

S&P 500

S&P MidCap 400

Russell 2000

Diversified Pacific/Asia Diversified Emerging Mkts

Europe Stock

Foreign Large Blend Foreign Large Growth Foreign Large Value

Foreign Small/Mid Growth Foreign Small/Mid Value

World Stock

MSCI World

MSCI Emerging Markets

MSCI EAFE MSCI Europe

MSCI Latin America

MSCI Pacific

High Yield Bond

Inflation-Protected Bond Intermediate-Term Bond

Muni National Long

World Bond 0.0 -2.3 0.2 2.2 4.0 BarCap US Agg Bond TR USD 0.9 0.5 1.5 3.1 4.4 BofAML US HY Master II TR -0.6 1.9 5.9 7.5 7.5 BarCap Municipal TR USD 0.7 0.8 2.8 4.4 4.6