U.S. stock funds are beating the S&P 500

If averages are any guide, then there is good news for mutual fund investors because actively managed U.S. stock funds have outperformed the S&P 500 so far this year.
JUN 18, 2009
If averages are any guide, then there is good news for mutual fund investors because actively managed U.S. stock funds have outperformed the S&P 500 so far this year. The average year-to-date return for an actively managed domestic stock fund was 7.75% through June 15, compared to 3.58% for the Standard & Poor’s 500 stock index, according to Chicago-based Morningstar Inc. Some of the leading companies in the index had double-digit losses in the first quarter, said Russel Kinnel, director of mutual fund research at Morningstar. For instance, Pfizer Inc. of New York and Procter & Gamble Co. of Cincinnati are down for the year. “Many of the securities [active managers] held have snapped back faster than the broad-based index,” said Geoff Bobroff, an East Greenwich, R.I.-based mutual fund consultant. “It has become a market of stock selection rather than a jumble of the broad market.” Financial services and firms in the commodities sector rebounded sooner than the market, he said.

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