US funds defy odds ahead of the election

With the US election just a week away, we compared Australia's 14 US managed funds and exchange traded funds (ETFs) and found only four funds captured 100 per cent of the market upside.

Based on Financial Express' data, the fund that captured the most upside (190.48 per cent) and the least downside (26.08 per cent) generated the best annual return in the US sector.

The BetaShares geared US equity fund generated the highest annual return of 31.81 per cent, followed by Vanguard's US total market shares index ETF which generated 14.06 per cent (year-on-year).

Based on Financial Express' data, the three other funds that captured 100 per cent or more of the market's upside included:

• SPDR S&P 500 ETF trust which captured 101.29 per cent upside, 113.90 downside and generated an annual return of 3.56 per cent;
• THB's US Micro Cap caught 101.09 per cent upside, 75.73 per cent downside and generated an annual return of 9.69 per cent; and
• BT's wholesale America share fund caught 100.02 per cent upside, 106.30 per cent downside and generated a 4.38 per cent return.

Another noteworthy fund, based on Financial Express' data was BetaShares NASDAQ 100 ETF, which caught the third highest amount of downside in the sector (100.63), however it generated the fourth best return of 7.94 per cent.

Fund manager, Eaton Vance, said that markets had already factored in that Hillary Clinton would win the election.

Eaton Vance's chief investment officer, Edward J. Perkin, said if Donald Trump won, which was the least likely scenario then markets would take it very negatively in the short-term.

"There would be fears of a trade war and the potential impact on the U.S dollar and immigration policy," he said.

However, he added that "the longer-term ramifications of a Trump presidency wouldn't be as negative as some fear".