What fund consistently beat the S&P 500?
For large cap stocks, there are funds that have beaten S&P500 consistently for over 40-50 years. Fidelity's Contrafund has beaten the market since inception in the 60s. Fidelity growth company and blue chip growth since the 80s. American century's large cap funds (TWCIX, TWCGX, TWCUX) since 70s.
Rowe Price U.S. Equity Research fund (ticker: PRCOX) is in this exclusive club, having bested—along with a team of about 30 research analysts—the S&P 500 index for the past five years on an annualized basis. U.S. Equity Research is a Morningstar five-star gold-medal fund.
The "Magnificent Seven" -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) -- have produced market-trouncing returns in 2023.
With a significant focus on high-performing sectors like Technology, Consumer Discretionary, and Health Care, the Nasdaq-100 has managed to outshine the S&P 500 by a considerable margin from December 31, 2007, to September 30, 2023.
- SPDR S&P Emerging Markets Dividend ETF ( EDIV ) – Up 40.9%; Yield 4.26% annually.
- WisdomTree Japan Hedged SmallCap Equity Fund ( DXJS ) – Up 37.9%; Yield 2.71% annually.
Index funds seek market-average returns, while active mutual funds try to outperform the market. Active mutual funds typically have higher fees than index funds.
Focused funds | 5-year-return (%) | Benchmark index (%) |
---|---|---|
HDFC Focused 30 Fund | 18.96 | 17.45 |
ICICI Prudential Focused Equity Fund | 19.04 | 17.61 |
Nippon India Focused Equity Fund | 18.09 | 17.61 |
Quant Focused Fund | 20.04 | 17.45 |
ETF | Ticker | Annualized 5-year return |
---|---|---|
iShares Core S&P 500 ETF | IVV | 15.65% |
SPDR S&P 500 ETF Trust | SPY | 15.52% |
Vanguard S&P 500 ETF | VOO | 14.26% |
Company | Sector | 5 Year Total Return |
---|---|---|
Eli Lilly and Co (LLY) | 🚑 Health Care | 440% |
Axon Enterprise (AXON) | 🏭 Industrials | 429% |
Palo Alto Networks (PANW) | 🖥️ Information Technology | 412% |
Lam Research (LRCX) | 🖥️ Information Technology | 392% |
During a recession, investing in cash and cash equivalents becomes a strategic choice for investors who are hoping to preserve their capital and maintain liquidity. Cash equivalents include short-term, highly liquid assets with minimal risk, such as Treasury bills, money market funds and certificates of deposit.
Can you consistently beat the S&P 500?
Yes, you may be able to beat the market, but with investment fees, taxes, and human emotion working against you, you're more likely to do so through luck than skill. If you can merely match the S&P 500, minus a small fee, you'll be doing better than most investors.
Berkshire Hathaway stock generally lagged the S&P 500 index since late 2017, but managed to handily outperform the benchmark index in 2022. It lagged again in 2023 after giving up some spring and summer gains.
It found that over the course of one year, 51.08% of actively-managed mutual funds underperformed the S&P 500, and 48.92% of actively-managed funds outperformed the S&P 500. * However, those numbers change dramatically over longer periods of time.
I put my personal 401(k) and a lot of my mutual fund investing in four types of mutual funds: growth, growth and income, aggressive growth, and international. I personally spread mine in 25% of those four.
Five large cap mutual funds that gave the highest return in the past 10 years are Nippon India Large Cap Fund which gave 17.09% returns, followed by Mirae Asset Large Cap Fund with 16.99% return. The other three are ICICI Prudential Bluechip Fund, SBI Bluechip Fund and HDFC Top 100 Fund.
SPY - Volatility Comparison. VanEck Vectors Morningstar Wide Moat ETF (MOAT) has a higher volatility of 3.94% compared to SPDR S&P 500 ETF (SPY) at 3.29%. This indicates that MOAT's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure.
It is relatively common to beat the market for 1–3 years at a time. That can largely be explained by luck. But the data clearly shows that even professional fund managers are unable to beat the market consistently over a longer period of time, like 10–15 years.
Less than 10% of active large-cap fund managers have outperformed the S&P 500 over the last 15 years.
Just 2% of large-cap core funds have beaten the S&P 500 since 1993 | TEBI.
Ticker | Name | 5-year return (%) |
---|---|---|
PBFDX | Payson Total Return | 16.30% |
SSAQX | State Street US Core Equity Fund | 16.20% |
CORRX | Columbia Contrarian Core Adv | 15.89% |
FGRTX | Fidelity Mega Cap Stock | 15.73% |
Which fund has the highest 10 year return?
Fund Name | 5 Years Return | 10 Years Return |
---|---|---|
Nippon India Growth Fund (G) | 26.0% | 21.4% |
Kotak Infrastructure & Economic Reform Fund Standard Plan (G) | 24.7% | 21.4% |
DSP India T I G E R Fund (G) | 25.8% | 20.9% |
Quant Small Cap Fund (G) | 37.4% | 20.7% |
Over the 3 years, returns from funds vary from 27.62 per cent to 50 per cent. Bandhan Small Cap Fund showed consistently strong performance across all time frames, with the highest one-year return of 73.16 per cent and a decent 3-year return of 34.72 per cent.
A top-performing index fund for income-oriented investors is the SPDR S&P Dividend ETF (SDY -0.23%). The dividend-weighted fund's benchmark is the S&P High Yield Dividend Aristocrats® Index, which tracks 121 stocks in the S&P Composite 1500 Index with the highest dividend yields.
The Fidelity Blue-Chip Growth ETF FBCG has jumped 58.7% in 2023 to become the best-performing U.S. fund, excluding ETNs and leveraged products, according to FactSet data. The WisdomTree U.S. Quality Growth Fund QGRW is up 56.2% this year, while the Invesco QQQ Trust Series I QQQ has risen 55.6% in 2023.
Stock | 2024 performance through Jan. 31 close |
---|---|
Super Micro Computer Inc. (SMCI) | 86.3% |
Kaman Corp. (KAMN) | 88.1% |
Ambrx Biopharma Inc. (AMAM) | 95.2% |
Digital World Acquisition Corp. (DWAC) | 116.9% |
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