Investing Specialists

Top 10 Holdings of Our Ultimate Stock-Pickers' Index

The Morningstar Ultimate Stock-Pickers Team

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 (the main contributors to the Ultimate Stock-Pickers concept) has been well documented by the S&P Indices Versus Active Funds (SPIVA) U.S. Scorecard. For the five-year period ended in December 2016, the index group noted that 88.3% of active large-cap fund managers had on average underperformed the S&P 500 TR Index. The results have been similar across all investing styles. A paltry 8.5% of large-cap value managers have outperformed their index, versus 12.1% of large-cap core managers and 15.2% of large-cap growth managers outperforming their respective benchmarks.

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