Value Funds: That’s A Whole Lot Of Value Building Up
Value funds have trailed in 10-year performance their style counterparts in growth and core, which encompasses both growth and value stocks. They’re also lagging their peers year to date.
A $ 10,000 investment in the average value mutual fund made on June 30, 2005, would have grown to $ 17,661 by Sept. 8 this year, according to Morningstar Inc. data. That’s behind the $ 23,232 that core funds would have generated, $ 23,007 from growth funds and $ 20,489 from the S&P 500.
This year, value funds have handed investors a 6% decline, core funds 4% and the S&P 500 3%. Growth funds, on the other hand, are up 3%.
Victory Sycamore Established Value Fund has generated an average annual return of 9.51% the past 10 years vs. 7.04% for the S&P 500, a proxy for the broad stock market. The $ 2.4 billion fund has been managed by Gary Miller since 1998, Gregory Conners since 2002 and Jeffrey Graff since 2007. It’s up 1% this year. The fund’s recent holdings include home improvement products maker Masco (NYSE:MAS) and Casey’s General Stores (NASDAQ:CASY).
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