Small-Value Funds Thriving in the Rebound
These proven funds are bouncing back with a vengeance.
As equities have bounced back sharply over the past month, small-value funds have led the way among diversified U.S. and foreign-stock funds: They've risen 37% for the four weeks ended April 9, 2009. Of course, the funds are generally still down substantially since the bear market began in October 2007. And more importantly, we don't want to place much emphasis on short-term performance. Nevertheless, it's worthwhile to identify small-value funds with experienced skippers that are both benefiting from the rebound and have navigated the turbulent markets of the past five years with aplomb. And small-value stocks boast some of the strongest returns over the very long haul, so they deserve a slot in just about any diversified portfolio.
We used Morningstar's Premium Fund Screener to help us isolate small-value funds that fit our criteria. We searched for funds within the category that have landed in the top third over both the past four weeks and the trailing five years, have had the same managers over that stretch, charge below-average expense ratios and are open to new investors.
Our search yielded some fine choices. Click here to run the screen yourself. Here's the entire list as of April 13, 2009:
Greg Carlson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.