Contrarian Picks for 2024
Large outflows may signal decent future returns for several Morningstar Categories.
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Large outflows may signal decent future returns for several Morningstar Categories.
Funds from T. Rowe Price, Fidelity, and Eaton Vance are among those with the best track records.
These bank-loan and inflation-protected funds should be able to stand up against rising rates.
Bank-loan funds lacked investor appeal in 2019 and 2020 as interest rates fell. But economic recovery and the potential for rising short-term interest rates have put the category back in favor in 2021. Bank-loan mutual funds have received net inflows of more than $13 billion for the year to date through April 2021, which was almost a fourth of the category’s assets at the beginning of the year. Demand for high-yield bond funds has been milder this year despite the similarities of the two asset classes. While high-yield bonds have greater upside potential, bank loans' defensive characteristi...