The Select Investment Scorecard | American Funds

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The Select Investment Scorecard

Can a select group of equity funds consistently beat the index?
Contrary to popular belief, some mutual funds do beat the index on a consistent basis. Two simple screens – low expenses and high manager ownership – identify a group of funds that, on average, has consistently beaten the indexes over various rolling periods. We call this group the Select Equity funds. See the results below.


View:

U.S. Large-Cap Equity  |   International

U.S. Large-Cap Equity

Viewing: 10-year monthly rolling periods | 20 years ended 12/31/2016

Source: Capital Group, based on Morningstar data. Based on monthly rolling periods from January 1997 to December 2016. U.S. domestic funds in the Select Equity group are those in the Morningstar Large Value, Large Blend and Large Growth categories. U.S. index is S&P 500. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Past results are not predictive of future results.

American Funds That Qualify as Select Equity Funds

Viewing: 10-year monthly rolling periods | 20 years ended 12/31/2016

Source: Capital Group, based on Morningstar data. Based on monthly rolling periods from January 1997 to December 2016. U.S. domestic funds in the Select Equity group are those in the Morningstar Large Value, Large Blend and Large Growth categories. U.S. index is S&P 500. The index is unmanaged and, therefore, has no expenses. There have been periods when the funds have lagged the index. Investors cannot invest directly in an index. Past results are not predictive of future results.

U.S. Large-Cap Equity

Viewing: 5-year monthly rolling periods | 20 years ended 12/31/2016

Source: Capital Group, based on Morningstar data. Based on monthly rolling periods from January 1997 to December 2016. U.S. domestic funds in the Select Equity group are those in the Morningstar Large Value, Large Blend and Large Growth categories. U.S. index is S&P 500. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Past results are not predictive of future results.

American Funds That Qualify as Select Equity Funds

Viewing: 5-year monthly rolling periods | 20 years ended 12/31/2016

Source: Capital Group, based on Morningstar data. Based on monthly rolling periods from January 1997 to December 2016. U.S. domestic funds in the Select Equity group are those in the Morningstar Large Value, Large Blend and Large Growth categories. U.S. index is S&P 500. The index is unmanaged and, therefore, has no expenses. There have been periods when the funds have lagged the index. Investors cannot invest directly in an index. Past results are not predictive of future results.

U.S. Large-Cap Equity

Viewing: 3-year monthly rolling periods | 20 years ended 12/31/2016

Source: Capital Group, based on Morningstar data. Based on monthly rolling periods from January 1997 to December 2016. U.S. domestic funds in the Select Equity group are those in the Morningstar Large Value, Large Blend and Large Growth categories. U.S. index is S&P 500. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Past results are not predictive of future results.

American Funds That Qualify as Select Equity Funds

Viewing: 3-year monthly rolling periods | 20 years ended 12/31/2016

Source: Capital Group, based on Morningstar data. Based on monthly rolling periods from January 1997 to December 2016. U.S. domestic funds in the Select Equity group are those in the Morningstar Large Value, Large Blend and Large Growth categories. U.S. index is S&P 500. The index is unmanaged and, therefore, has no expenses. There have been periods when the funds have lagged the index. Investors cannot invest directly in an index. Past results are not predictive of future results.

U.S. Large-Cap Equity

Viewing: 1-year monthly rolling periods | 20 years ended 12/31/2016

Source: Capital Group, based on Morningstar data. Based on monthly rolling periods from January 1997 to December 2016. U.S. domestic funds in the Select Equity group are those in the Morningstar Large Value, Large Blend and Large Growth categories. U.S. index is S&P 500. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Past results are not predictive of future results.

American Funds That Qualify as Select Equity Funds

Viewing: 1-year monthly rolling periods | 20 years ended 12/31/2016

Source: Capital Group, based on Morningstar data. Based on monthly rolling periods from January 1997 to December 2016. U.S. domestic funds in the Select Equity group are those in the Morningstar Large Value, Large Blend and Large Growth categories. U.S. index is S&P 500. The index is unmanaged and, therefore, has no expenses. There have been periods when the funds have lagged the index. Investors cannot invest directly in an index. Past results are not predictive of future results.

What Are Select Equity Funds?

Our analysis has uncovered two simple screens that identify a group of Select Equity funds that has generated higher returns over time with reduced volatility. Those screens are low expenses and high manager ownership.
active-scorecard
We filtered the entire Morningstar database of U.S. and foreign large-cap equity funds for the quartile with the lowest net expense ratios (NER) and the quartile with the highest manager ownership. The Select Equity funds at the intersection of these two groups delivered higher results, on average, when compared to market indexes over time. The American Funds included in these categories have, as a group, done even better.
Read the Methodology below.

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. View fund expense ratios and returns. 

Returns shown at net asset value (NAV) have all distributions reinvested. If a sales charge had been deducted, the results would have been lower.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. 

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. 

The Capital Group companies manage equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.