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Market Update

Style Universe: Growth Funds Gained in November

Tech stocks lifted growth issues.

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For the second month in a row, growth funds that buy quickly growing companies with high price/earnings ratios performed better than value offerings that prefer stocks that look cheap relative to earnings, cash flow, or other fundamental measures. 

November was a pretty good month for all funds. The average domestic-stock fund in Morningstar's database rose 1.81% for the trailing 30 days through December 3. ProFunds UltraShort OTC (USPIX), which essentially makes a bet that the Nasdaq 100 index will drop, posted the worst return for any U.S.-equity fund for the month through December 3, falling 12.61%. The fund uses short-selling and other techniques to try to go twice as far in the opposite direction of the index on a daily basis. Thus it gains when the index loses, which has not been the case over the past month.

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