Good Funds in Bad Markets
Kiplinger's Personal Finance|August 2019

These managers have stellar track records, delivering strong gains in weak categories.

John Waggoner
Good Funds in Bad Markets

IF YOU’RE LOOKING FOR A STOCK MUTUAL fund that will rise when all others fall, you’re probably disappointed you haven’t found that pot of gold under a rainbow, either. A diversified stock fund is going to fall when the market does. But what if you could find a fund manager who does well consistently, even in corners of the market that seem perennially cursed? Not a pot of gold under a rainbow, perhaps, but such managers are certainly rare.

Among the most snake-bitten areas of the market are value funds, which look for stocks that are cheap relative to earnings and other measures. Even worse off are international value funds, which combine two struggling categories. Small-company stocks have lagged their bigger brethren for years, and emerging markets have been intermittently awful. Fund managers in Japan have worked in a moribund market for decades.

We found five funds that have fared well in those tough markets, on the theory that stock pickers who shine in the face of long-standing adversity are worth checking out. Moreover, corners of the market that have long been out of favor may be ready to turn, or at least are likely to lose less if the market overall heads down. Returns and other data are through June 14.

AMERICAN FUNDS NEW WORLD FUND (SYMBOL NWFFX)

Emerging-markets funds have been more disappointing than a piñata filled with toothbrushes. MSCI’s emerging-markets index has gained an average of 2.5% a year for the past decade, compared with 3.3% for international developed markets and 14.2% for Standard & Poor’s 500-stock index. But New World has returned a compelling 7.2% annualized, beating 92% of its peers.

Denne historien er fra August 2019-utgaven av Kiplinger's Personal Finance.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra August 2019-utgaven av Kiplinger's Personal Finance.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA KIPLINGER'S PERSONAL FINANCESe alt
FREE HELP FOR COLLEGEBOUND STUDENTS
Kiplinger's Personal Finance

FREE HELP FOR COLLEGEBOUND STUDENTS

This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.

time-read
2 mins  |
December 2024
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
Kiplinger's Personal Finance

WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS

You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.

time-read
2 mins  |
December 2024
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
Kiplinger's Personal Finance

SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS

ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.

time-read
5 mins  |
December 2024
Strategies for Novice Investors
Kiplinger's Personal Finance

Strategies for Novice Investors

AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.

time-read
3 mins  |
December 2024
ANSWERS TO YOUR 529 PLAN QUESTIONS
Kiplinger's Personal Finance

ANSWERS TO YOUR 529 PLAN QUESTIONS

Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.

time-read
6 mins  |
December 2024
Rate-Cut Winners and Losers
Kiplinger's Personal Finance

Rate-Cut Winners and Losers

NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.

time-read
2 mins  |
December 2024
SHOULD YOU BUY THESE RED-HOT FUNDS?
Kiplinger's Personal Finance

SHOULD YOU BUY THESE RED-HOT FUNDS?

Covered-call ETFs are popular but come with plenty of caveats.

time-read
6 mins  |
December 2024
DIVIDEND STOCKS ARE READY TO REBOUND
Kiplinger's Personal Finance

DIVIDEND STOCKS ARE READY TO REBOUND

Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.

time-read
10+ mins  |
December 2024
IS A 55+ COMMUNITY RIGHT FOR YOU?
Kiplinger's Personal Finance

IS A 55+ COMMUNITY RIGHT FOR YOU?

These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.

time-read
8 mins  |
December 2024
AT LONG LAST, RATES ARE DROPPING
Kiplinger's Personal Finance

AT LONG LAST, RATES ARE DROPPING

Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.

time-read
4 mins  |
December 2024