Top 10 Holdings of Our Ultimate Stock-Pickers' Index
We examine the biggest contributors to -- and detractors from -- the performance of the index during the past year.
Fund investors would like to see the manager of the actively managed funds they own beat the market every year, but they've been left wanting for well over a decade. The lack of consistent outperformance by large-cap active managers (the main contributors to the Ultimate Stock-Pickers concept) has been well documented by Morningstar's Active/Passive Barometer. For the 20 years ending in December 2020, our researchers noted that just 11.3% of large-cap managers had managed to both survive and outperform the S&P 500. Over the most recent five years, the percent of actively managed large cap funds that have outperformed the S&P 500 is consistent across investing styles. A mere 16.5% of large-cap blend managers have outperformed their index over the past five years versus 20.3% of large-cap value managers and 20.6% of large-cap growth managers.
Even though five-year results have been lacking for active management, about 34.4% of large-cap growth funds have still managed to outperform the S&P 500 benchmark in 2020. We saw a marked improvement in managers' results in the large-cap value category, which overperformed compared with 2019. Morningstar's large-cap index (MLCP) has posted year-to-date returns of 17.08%.
Malik Ahmed Khan does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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