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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.

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