Top-Performing US Real Estate Investment Trusts Lead Global Markets Higher Again
August saw US real estate investment trusts dominating global markets for the second consecutive month, as indicated by a set of ETFs representing major asset classes.
While commodities experienced the only monthly loss, the standout performer was the Vanguard Real Estate ETF (NYSE:), which surged 5.2% in August, following a strong performance in the previous month.
This rally has propelled the fund back from an earlier slump, positioning it as one of the top performers in the market. Global property shares () also showed a significant recovery, securing the second-best monthly gain.
Overall, August witnessed widespread gains, with US stocks () rising by 2.1% and US fixed income () advancing by 1.5%. The only asset class in the red last month was commodities (), which declined by 2.2%.
Reviewing year-to-date results, US shares (VTI) maintained a substantial lead of 18.2%. Developed-markets stocks ex-US () followed with an 11.0% rise as the second-best performer in 2024. The only classes with year-to-date losses were foreign-developed markets ex-US bonds () and foreign inflation-indexed bonds (), with the latter being the worst performer at a 1.7% setback.
The Global Market Index (GMI) continued its positive trend with a fourth straight monthly gain of 2.3% in August. GMI, an unmanaged benchmark by CapitalSpectator.com, includes all major asset classes (except cash) in market-value weights through ETFs, serving as a competitive benchmark for multi-asset-class portfolios.
Year to date, GMI has surged by 13.2%, second only to the rally in US stocks (VTI) in 2024. Over a one-year period, GMI’s performance remains moderate compared to US stocks (VTI) and US bonds (BND).
Analysis:
In August, US real estate investment trusts emerged as the top performers in global markets for the second consecutive month. The Vanguard Real Estate ETF (NYSE:) led the rally with a 5.2% surge, marking a strong recovery from an earlier slump. Additionally, global property shares showed significant improvement.
While most asset classes recorded gains, commodities were the only category that experienced a monthly loss. US stocks and US fixed income saw increases of 2.1% and 1.5% respectively, while commodities declined by 2.2%.
Year-to-date results highlighted the dominance of US shares, with a substantial lead of 18.2%. Developed-markets stocks ex-US followed with an 11.0% rise. However, foreign-developed markets ex-US bonds and foreign inflation-indexed bonds were the only classes with year-to-date losses.
The Global Market Index (GMI) continued its positive trend, posting a fourth consecutive monthly gain of 2.3% in August. GMI, an unmanaged benchmark, represents a competitive benchmark for multi-asset-class portfolios.
Overall, GMI has surged by 13.2% year-to-date, second only to the rally in US stocks. Despite its strong performance, GMI’s one-year performance remains moderate when compared to US stocks and US bonds.