Skip to Content
Investing Specialists

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.

Mentioned: , , , , , , , , ,

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.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.