Skip to Content
Fund Spy

First Quarter in U.S. Equity Funds: Growth Dominates Value

After a tough 2016, growth made a comeback in 2017's first quarter.

Mentioned: , , , , , , , , ,

U.S. stocks continued their march higher during 2017’s first quarter to date through March 30. The S&P 500 was up 6.3%, while the Russell 2000 Index was up 2.2%. For most of the quarter, investors remained upbeat that a Donald Trump presidency would result in pro-growth policy changes, though doubts are mounting after a failed effort to reform U.S. healthcare in late March. Economic data--including employment reports and consumer confidence--was generally strong during the first quarter, contributing to the Federal Reserve's March decision to raise short-term interest rates for the second time in four months.

Technology stocks within the broad Russell 3000 Index have led the way in the first quarter, climbing 12%. Tech giants  Apple (AAPL) and  Facebook (FB) rose nearly 25%, while hardware firms  NetApp Inc (NTAP) and  Western Digital (WDC) climbed more than 15%.  T. Rowe Price Global Technology (PRGTX), with a Morningstar Analyst Rating of Silver, rose 17.9%. After being the worst-performing sector in 2016, healthcare has bounced back this quarter, climbing 9%. Medical-device makers such as Align Technologies (ALGN),  Abbott Laboratories (ABT), and  Boston Scientific (BSX) rose double-digits. Gold-rated  Vanguard Health Care (VGHCX) climbed 11.1%.

Andrew Daniels has a position in the following securities mentioned above: AAPL. 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.