10 Funds That Are Better Than They Look
These funds could be well positioned to outperform when growth stocks take a back seat to steadier fare.
The past three years have rewarded risk-taking. The Morningstar US Growth Index is up 18% for the year to date through Aug. 14, outpacing the Morningstar US Core Index by 6 percentage points and leaving the Morningstar US Value Index more than 14 percentage points behind. (Morningstar US Style Indexes divide the Morningstar US Market Index into smaller subsets based on their market capitalization and/or style orientation scores.)
Not surprisingly, funds that ply more conservative strategies have lagged of late. In fact, many solid funds that our analysts rate highly don't look all that impressive over a three-year period. Some of these middling three-year performers deserve a second look, though.
Karen Wallace does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.