Skip to Content
Fund Spy

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.

Mentioned: , , , , , , , ,
 

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.

To view this article, become a Morningstar Basic member.

Register for Free

Linda Abu Mushrefova does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.