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The Top 10 Fund Value Creators and Destroyers

Which funds generated the greatest dollar returns in 2005?

Russel Kinnel, 01/24/2006

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A company's bottom line is its profits expressed in dollar terms. For mutual funds, we usually think of the bottom line in total return percentage figures. However, there's something to be said for looking at a mutual fund's results in dollar terms, too.

If you back out cash flows and simply look at how much value a fund created or destroyed for its shareholders, you effectively have the bottom line of the fund's investors. Once a year, I like to do this to see which funds made the most money for shareholders in dollar terms. Specifically, we're looking at how much the fund's portfolio appreciated or depreciated without the effects of inflows or outflows. In other words, what return did the fund's investments generate?

Value Creators

What I like about this measure is it shows which large funds were able to produce results after they became huge. To be sure, looking at it in dollar terms biases things in favor of the largest funds, but, hey, it's only a once-a-year thing.

Not surprisingly, American Funds, which dominates the list of biggest funds, also dominates the list of biggest value creators in a year when most stock funds had positive returns.

 2005's Value Creators


Net Value
American Funds Growth Fund of America AGTHX
Large Growth
American Funds EuroPacific Growth AEPGX
Foreign Large Blend
Fidelity Contrafund FCNTX
Large Growth
American Funds Capital World Growth & Inc CWGIX
World Stock
American Funds Investment Comp of America AIVSX
Large Value
Vanguard 500 Index VFINX
Large Blend
Fidelity Diversified International FDIVX
Foreign Large Growth
American Funds New Perspective ANWPX
World Stock
Dodge & Cox Stock DODGX
Large Value
Vanguard Total Stock Market Index VTSMX
Large Blend
Morningstar data.

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