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Investing Specialists

Top 10 Holdings of Our Ultimate Stock-Pickers' Index

Relatively weak performance from the healthcare sector has created opportunities for long-term investors to consider.

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By Joshua Aguilar | Associate Stock Analyst

Every fund investor would like to see the manager of the actively managed funds that they own beat the market every year, but they've been left wanting for well over a decade. The lack of consistent outperformance on the part of large-cap active managers (which are the main contributors to the Ultimate Stock-Pickers concept) has been well documented by S&P Dow Jones indices in its mid-year and year-end S&P Indices Versus Active Funds (SPIVA) U.S. Scorecard. As of the end of June, the index group noted that an astounding 91.9% of active large-cap fund managers had on average underperformed the S&P 500 TR Index during the previous five years. While the results were similar for large-cap core managers (with just 7.8% outperforming the index), large cap-growth managers had an awful time of it (with just 2.6% outperforming the S&P 500 Growth Index) during the same time frame. Large-cap value managers fared somewhat better, though, with 11.2% on average outperforming the S&P 500 Value Index during the five years ending on June 30, 2016.

The Morningstar Ultimate Stock-Pickers Team does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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