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Fund Spy

5 Funds Whose Trailing Returns Don't Tell the Whole Story

The bull market in equities since the credit crisis has masked the volatility of these funds.

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A version of this article was published in the April 2016 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor here.

Trailing returns serve as a useful tool to compare a fund’s performance with its benchmark or peer group. However, the measure often disguises how volatile a fund has been during a longer time frame. That’s especially true when a fund has recently turned in very strong or poor performance, which can bias its trailing returns.

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