Dumb and Dumber: The Worst Fund Launches of the 2000s
If you thought some bad ideas were mooted in the '90s, look at this.
Morningstar analysts have been having a little debate lately. When it comes to dumb fund launches, which decade was the worst: the '90s or the soon to be history '00s?
We disagree along generational lines. The old guard, led by our vice president of research John Rekenthaler, contends fund companies have yet to retest the low standards for mercenary fund rollouts set in the last decade of the previous century. Analysts of more recent vintage, including me, find it hard to imagine a time of greater cupidity than the decade that's about to close out.
When it comes to fund analysis, John has forgotten more about mutual funds than many industry watchers know. But he's wrong on this one. The double oughts set new records for dubious, trend-chasing new funds.
Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.