Emerging-Markets Index Beaters
Our series concludes with a look at actively managed emerging-markets stock funds that beat an index proxy during the trailing five- and 10-year periods.
For the past several weeks Five-Star Investor has looked at actively managed funds that beat indexes or index proxies in various categories. Before we wrap up our series by looking at actively managed stock funds that invest in diversified emerging markets, let's first review what we've learned so far in this series.
Previously we looked at small-, mid-, and large-cap domestic-stock funds, foreign-stock funds, and intermediate-term bond funds. In every case aside from intermediate-term bond--in which about half of the actively managed funds outperformed the index--a minority of actively managed funds with 10-year track records beat their benchmarks during both the five- and 10-year trailing periods. In the domestic-stock categories, the percentage of qualifying funds outperforming was lowest among small-cap equity funds (at 11%) and highest among large-cap funds (at 23%). Keep in mind that the Morningstar
Premium Fund Screener database does not include funds that existed at some point during the past 10 years but have been closed or merged away, so it's possible that the percentages would be different if those defunct funds were included.
Adam Zoll has a position in the following securities mentioned above: ODMAX. Find out about Morningstar’s editorial policies.