Skip to Content

Second Quarter in U.S. Stock Funds: Growth on Fire

Growth funds and technology dominated, while value and energy struggled.

As the second quarter winds to a close, the market still favors U.S. equity funds. Eight of the nine Morningstar Style Box categories have posted solid gains for the quarter to date through June 27, with small value’s slightly negative quarter-to-date category return the outlier.

U.S. growth equity funds have continued to dominate value offerings in 2017, reversing the pattern seen in 2016. Large-growth was the top-performing diversified U.S. equity Morningstar Category for both the quarter and year to date as of late June, with mid- and small-growth not far behind. Strong performance in growth-oriented sectors, including technology, fueled big rewards for many funds, though tech stocks pulled back a bit toward quarter-end.

The energy sector, a value haven and market darling in 2016, changed course in 2017 as oil prices slid during the quarter. Commodity-related stocks, such as precious metals and natural resources, also were losers in this short span. Financials stocks, which had a big tailwind in late 2016 on optimism about the potential for less regulation under the Trump administration, also cooled off.



Among the funds that had a rougher go,

Large-value fund

It’s unsurprising to see deep-value fund

For all category returns through the previous day, visit the Fund Category Performance page.

More Quarter-End Reports

Market Stock Market Outlook: Equity Valuations Look Lofty

Economy Midyear Economic Forecast: Lower Inflation, Slow Growth

Credit Markets Credit Market Insights: Bond Indexes Perform Well in a Quiet Market

Equity Sectors Basic Materials Outlook: Propped Up and Too Expensive

Communication Services: AT&T and Verizon--A Duopoly No More

Consumer Cyclical: Amazon Reshapes Retail in Real Time

Consumer Defensive: Retailer Consolidation Sparks Concerns, but Opportunities Exist

Energy: Despite OPEC Cuts, a Crude Awakening Is Near at Hand

Financial Services: Our Take on U.S. Tax Reform and Bank Deregulation

Healthcare Outlook: ACA Repeal Efforts Unlikely to Yield Major Legislative Changes

Industrials: China Shows Signs of Softening, but the Sector Remains Healthy Overall

REITs: Some Scattered Opportunities in a Fairly Valued Sector

Tech: A Tectonic Shift Toward Enterprise Cloud Computing

Utilities: Tough to Stop This Sector's Powerful Performance

Mutual Funds First Half Winners and Losers for Funds

International-Stock Funds Continue to Prosper

Bonds in the Second Quarter: The Flattening

Portfolio Planning With Christine Benz Trends and Takeaways From 2017's First Half

PitchBook Reports Tapping the Brakes on M&A

Private Equity: Capital Deployment Remains a Challenge

Venture Capital: Less Is More?

More on this Topic