Page 2 - Factor Profile News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Funds that gained more than 100% in 2020 fell about 3% on average last year, with most badly lagging the market. This fits the historical pattern.

Valuation-conscious growth approaches have seen their fortunes turn for the better this year.

As you make your investing plans for 2021 and beyond, bolstering the value side of your portfolio is worth considering. Value stocks appear to be one of the few underpriced areas of the U.S. equity market, as Morningstar's Dave Sekera and Amy Arnott have recently noted in separate articles. The extreme value-growth spread has been a noted feature of the market for a number of years, for reasons not fully understood, but believers in mean-reversion would expect that pattern to shift at some point, perhaps in an extreme fashion. GMO's Ben Inker, for instance, argued in a recent letter to invest...

It's been difficult for actively managed U.S. and international-equity funds to beat their benchmarks. According to Morningstar's Active/Passive Barometer, only 48% of active U.S. stock funds survived and outperformed their average passive peer over the 12-month period ended June 2019, and only 23% of all active funds beat their passive benchmark over a 10-year period. As Morningstar director of global ETF research Ben Johnson notes in the report, foreign-stock and bond funds tend to have higher long-term success rates, while U.S. large-cap funds report the lowest success rates. To identify...