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Market Update

Lagging Funds Get a Bounce

Some funds’ fortunes shift as value revives and momentum fades.


It’s only been a span of six weeks, but trends in the stock market since the start of the fourth quarter are leading to a change in fortunes for some underperforming groups of funds.

During October, the small-value Morningstar Category led among U.S. diversified stock funds with a 3.3% gain, the first month the category was the strongest performer since the end of 2019. Meanwhile, in October, the large-growth category lost 2.6%, trailing all other eight Morningstar Style Box categories, the first month since March 2018.

Gabrielle Dibenedetto does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.