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2018 Was Equity Funds' Worst Year in a Decade

Any gains for funds last year were erased due to worries about a trade war with China and rising interest rates.

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Katie Reichart: As 2018 wound to a close, U.S. equity funds posted their worst calendar-year results in a decade. Concerns about a trade war with China and rising interest rates led to a fourth-quarter market pullback, erasing the gains many funds had made for the year. All nine U.S. style box categories ended the year with losses.

Generally, value did worse than growth and small caps underperformed large caps. Sector wise, energy was the biggest laggard amid sluggish oil prices, hurting value-oriented funds.

Katie Rushkewicz Reichart has a position in the following securities mentioned above: YACKX. Find out about Morningstar’s editorial policies.

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