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.
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.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.