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3 Funds That Are Getting Barbecued

These funds are missing the rally.

3 Funds That Are Getting Barbecued
Securities In This Article
Tesla Inc
Templeton Global Bond A
Old Dominion Freight Line Inc Ordinary Shares
ARK Innovation ETF
Xometry Inc Ordinary Shares - Class A

Russel Kinnel: It’s barbecue season, and that’s a good thing as a few funds are absolutely getting barbecued out there. The US stock market is up about 10% on the year, but a handful of funds are very much in the red. Let’s take a look at who and why.

3 Funds That Are Getting Barbecued

  1. ARK Innovation ARKK
  2. Templeton Global Bond TPINX
  3. Eventide Gilead ETGLX

Negative-rated ARK Innovation ARKK is down 18%. While Coinbase has been a winner for it, Tesla and Roblox have been crushed. Rising competition from China and issues with the Cybertruck have knocked Tesla shares down 29% year to date. Roblox has been hurt by weakening user engagement and lower guidance on future growth. Finally, ARK has also been hurt by what it doesn’t own. It sold Nvidia shares years ago and thus has missed out on this year’s 130% gain that boosted a lot of its growth peers.

Meanwhile, Templeton Global Bond TPINX has lost about 8% this year. The Neutral-rated fund is bearish on the dollar and the US economy, and that’s hurt once again in 2024. The fund is a bold macro-driven vehicle that has gotten too many calls wrong of late. Even its five- and 10-year returns are in the red.

Our third fund is yet another bold, idiosyncratic fund that’s down 6%. Neutral-rated Eventide Gilead ETGLX has been smacked by diverse holdings like Xometry, Flywire, and Old Dominion Freight Line. Manager Finny Kurrivilla has a background in healthcare venture capital, and the fund has lots of small/mid-cap healthcare names with big potential but big risks. The quirky portfolio leads to quirky performance, as returns tend to vary widely from year to year.

Watch 3 Upgraded Funds We Really Like for more from Russel Kinnel.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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About the Author

Russel Kinnel

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Russel Kinnel is director of ratings, manager research, for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He heads the North American Medalist Rating Committee, which vets the Morningstar Medalist Rating™ for funds. He is the editor of Morningstar FundInvestor, a monthly newsletter, and has published a number of prominent studies of the fund industry covering subjects such as manager investment, expenses, and investor returns.

Since joining Morningstar in 1994, Kinnel has analyzed virtually every type of fund and has covered the most prominent fund families, including Fidelity, T. Rowe Price, and Vanguard. He has led studies on the predictive power of fund data and helped develop the Morningstar Rating for funds and the Morningstar Style Box methodology. He was co-author of the company's first book, Morningstar Guide to Mutual Funds: 5-Star Strategies for Success (Wiley, 2003), and was author of the book Fund Spy: Morningstar's Inside Secrets to Selecting Mutual Funds That Outperform, published in 2009.

Kinnel holds a bachelor's degree in economics and journalism from the University of Wisconsin.

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