Morningstar's Four Stock Portfolios: Performance Update
Growth stocks continue to a) swoon and b) look attractive.
It's been a tough year for growth stocks. Through the end of July, there has been a difference of more than 15% between the performance of growth and value as defined by Morningstar. The Morningstar Growth Index has lost 4% year to date, versus an 11% gain for the Morningstar Value Index.
You see the discrepancy quite clearly when you examine the 2006 performance of our four stock portfolios: the Tortoise, Hare, Dividend, and Growth portfolios. Only the Dividend Portfolio--thanks to its holdings in high-yielding stocks of quality companies--has beaten the Morningstar U.S. Market Index's return of 3.4% (although the Tortoise is close). But the Hare and especially the Growth portfolios have lost ground this year.
Haywood Kelly, CFA has a position in the following securities mentioned above: DEO, EBAY, DELL, EXPE. Find out about Morningstar’s editorial policies.