Buy the Unloved: 2021 Funds Edition
After an out-of-favor 2020, the large-cap, bank-loan, nontraditional bond, and world-allocation Morningstar Categories may be due for a rebound.
A version of this article first appeared in the February 2021 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor by visiting the website.
Last year was a tumultuous one that introduced a lot of volatility and uncertainty into the markets. While unpredictability characterized 2020, Buy the Unloved's tried-and-true approach remained steadfast. Buy the Unloved is a contrarian investment strategy that has done well for more than 25 years by pointing investors toward out-of-favor Morningstar Categories. The original iteration dates to 1994 and will be referred to as Version 1. The original received a slight methodology tweak, creating a second iteration, Version 2, which is detailed in this article.
Linda Abu Mushrefova does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.