US Growth Index Medalist Funds

Index funds generally don’t try to beat the market by opportunistically buying or selling securities. Rather, they simply invest the fund or ETFs assets to mirror the construction of an index (such as the S&P 500), providing investors a way to gain exposure to a specific part of the markets. Index funds generally have lower relative costs compared with actively managed offerings. Here we highlight those funds also tilted towards US growth-oriented stocks. Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high valuations (high price ratios and low dividend yields). Often the companies are in rapidly expanding industries. We further narrow the list to those that also received a Gold, Silver, or Bronze Morningstar Medalist Rating by our analysts. The Medalist Rating is a forward-looking assessment of an investment strategy. The rating is on a five-tier scale running from Gold to Negative. For passive strategies, funds and ETFs with top ratings are expected to deliver alpha that exceeds the lesser of the category median net alpha, or zero, over the long term.