The Second Quarter in U.S. Stock Funds: Settling Down
After two volatile quarters, domestic stock funds took a breather.
The U.S. equity market settled down in the second quarter of 2019 after several months of wild swings. In 2018’s second half, the S&P 500 benchmark flirted with bear-market territory. Dragged down by big losses in energy and other economically sensitive stocks, it fell 19.4% between Sept. 21 and Dec. 24. Then in the first quarter of 2019, the market snapped back sharply, as the S&P 500 gained 14% and many of the same stocks posted the biggest gains. For the most part things have been much calmer over the past three months, with the S&P 500 gaining 3.7% from April 1 through June 27, and the other market indexes having similarly modest returns.
In keeping with this relatively calm environment, mutual fund returns across Morningstar Categories were tightly bunched, with no dramatic gains or losses. Among equity categories, only precious-metal funds and Latin America stock funds gained more than 5% for the quarter through June 27, and only energy funds lost more than 5%. The best-performing of the nine Morningstar Style Box categories was mid-cap growth, with a 4.6% gain, and the worst performer was small-value, with a 0.7% loss.
David Kathman 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:
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.