These Single-Star Large-Cap Funds Continue to Lag
In a good year for large-company stocks, some 1-star funds with sizeable asset bases remain underperformers.
The stock market's recent runup, capped off by last week's announcement of a new round of stimulus by the Federal Reserve, has brought a welcome dose of relief to investors tired of worrying about fallout from Europe's debt problems and the sluggish U.S. economy. If recent gains hold, 2012 will shape up as a pretty good year for equity investors, especially those holding large-cap stocks and stock funds, which have been among the strongest performers. The large-cap growth fund category has led the way so far this year with an average gain of 18% as of Sept. 17, with the large-blend and large-value categories returning a solid 16% and 15%, respectively.
But even though most large-cap fund investors have a right to smile these days, not all are fully taking part in the party. In fact, some large-cap funds with subpar long-term track records have continued to underperform this year. This includes a handful of widely held funds.
Adam Zoll does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.