485 / 772
3
Morningstar FundInvestor
November
2015
fund from the
17
to leave us with
16
impressive funds.
You can see them in the table above.
Even among this elite group, quite a few are in
modest redemptions, though none are seeing a major
exodus like that of some other large-growth funds.
So, how should you pick from among the
16
funds
that passed the test? Four are closed to new investors.
After that, I would use the Morningstar Analyst
Ratings as my guide. If an open Gold-rated fund fits
your portfolio, go with that. If not, then check out
the Silvers and then on to Bronze. While you could
select the highest return or Sortino ratio, I think
it wiser to use the one with the best fundamentals as
judged by our analysts, as that is a better path to
success than relying solely on returns.
Passive Lessons
The wild swings in performance also tell me some-
thing about index funds. It is better to have a
broad market fund like
Vanguard Total Stock Market
Index
VTSAX
than a large-growth index fund.
While any total market index fund will have market-
cap weightings, they will be less extreme than
those in a large-growth index. Note that in Vanguard
Total Stock Market, Apple is a more modest
3%
and
only nine holdings represent more than
1%
of assets.
You also get greater sector diversification as the
broad market indexes are not so heavily tilted toward
healthcare and technology.
K
Name/Ticker
Morningstar
Analyst Rating
Morningstar
Rating
Overall
Total Ret Annlzd
10-Yr (Mo-End)
Base Currency
Total Ret %
Rank Cat
10-Yr (Mo-End)
Prospectus Net
Expense Ratio %
Sortino Ratio
10-Yr (Mo-End)
Risk Currency
Amana Growth Investor AMAGX
•
QQQ
7.77
28
1.08
0.78
American Funds New Economy ANEFX
Œ
QQQQ
8.49
14
0.79
0.73
Fidelity Blue Chip Growth FBGRX
´
QQQQQ
8.91
9
0.89
0.77
Fidelity Contrafund FCNTX
•
QQQQQ
8.45
16
0.64
0.81
*Fidelity Growth Company FDGRX
•
QQQQQ
10.01
3
0.82
0.84
Fidelity OTC Portfolio FOCPX
´
QQQQQ
10.95
1
0.83
0.84
Harbor Capital Appreciation HACAX
Œ
QQQQQ
8.16
20
0.66
0.73
Laudus US Large Cap Growth LGILX
´
QQQQ
9.54
4
0.77
0.83
PRIMECAP Odyssey Growth POGRX
Œ
QQQQQ
9.06
7
0.63
0.81
*Sequoia SEQUX
Œ
QQQQQ
9.55
4
1.03
0.96
T. Rowe Price Blue Chip Growth TRBCX
•
QQQQQ
8.76
11
0.72
0.74
T. Rowe Price New America Growth PRWAX
´
QQQQQ
8.89
9
0.79
0.76
TIAA-CREF Growth & Income TIGRX
´
QQQQ
8.74
11
0.42
0.82
*Vanguard Capital Opportunity VHCOX
Œ
QQQQQ
9.31
5
0.47
0.77
*Vanguard PRIMECAP Core VPCCX
Œ
QQQQQ
8.91
9
0.50
0.85
*Vanguard PRIMECAP VPMCX
Œ
QQQQQ
9.02
8
0.44
0.83
Data as of 09/30/2015. *Closed to new investors.