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Morningstar

Sector Funds

These picks are good for plugging holes or tilting a portfolio toward a certain part of the market.
Most long-term strategic investors don’t need a dedicated sector fund. Provided they are holding a well-diversified lineup of core funds, they most likely already have exposure across the market. Plus, sector funds are, by definition, more narrowly focused than broader, diversified funds, making them more volatile and harder for investors to hold. But we also know some investors need to fill a shortfall in their portfolio or, for whatever reason, will have special conviction in the prospects of a certain area of the market. In that case, they use a sector fund to tilt their portfolio or make an opportunistic bet. To help those investors find best-of-breed choices, we screened for sector equity funds with Medalist ratings (Gold, Silver, or Bronze) that are open to new investment. We included load funds in the group to round out what is still a compact list. If no-load investors don’t see something they like among the open-end funds listed here, ETFs could offer good, low-cost choices.
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Name
Ticker
Morningstar Category
Morningstar Rating for Funds
Overall
Total Return
1 Year
Total Return
3 Year
Total Return
5 Year
American Century Global Real Estate InvARYVXGlobal Real Estate5.32%−1.41%3.87%
Cfxks ZmxKzfy JdnnyqhSCZSZTechnology27.53%−1.07%—
Jbzwv Kqjwlh Tmxy FqgywzdvHTPXWQHealth6.89%0.09%13.16%
Lhlzg Cbfg Kchryb Qbgwnn MhkNQCSHPReal Estate4.78%−2.69%8.04%
Rcrlt Slxqclhzgm JsrznpSTBJKVTechnology—53.66%——
QbvmgCdwv Tbxtgz Jjwpcfvt Cqyp QlRPFPHealth8.36%3.39%10.61%
RhcllQrfv Dstrjfrdhy Pwgyfzjhgslsr YqfrZSZZWSTechnology43.95%1.88%16.73%
Nlfdbzn Cvlq Mrywy Nrypqh DxmjqvzLMVLLREquity Energy20.62%16.01%15.30%
Splvm & Jyzbty Pgptvf Btnzxr DGTXFReal Estate3.80%−0.71%4.82%
Wkwbfzrq Mqptsdnb Jfthln Nqvm JBXWTechnology39.49%9.29%21.42%
Qfyltbfy Mfywtwrv Hqwb & Mzyd ZWYKMTechnology39.37%9.14%21.22%
Ynczrtvd BqllvmSblrlm Vwhk Tyhprz PrzdlHSZKReal Estate2.77%−1.42%2.78%
VWP TVRXT Fbzz Hwnghv Xjtqblfngk HWJCZXReal Estate2.44%−2.10%3.01%
KMP Zhgsfcj dfk RdvkjhqkkJLSPGFTechnology53.05%10.48%19.47%
Tkxmzpwx Jwqr Rmwd PgnjvdHPGZZGlobal Real Estate−3.67%−8.44%−0.07%
Jcbjbmhz Vbwk Cnxqbg PsmSKWFReal Estate7.22%0.54%3.62%
Qlvmjqvr Fljtxw LsmgtpdqfvQQYJHealth8.75%−2.80%6.65%
Ksjspypc Ftpvqs Nrhfdmlfsygxl XlhwmkmktxgYSDFJCommunications46.07%3.25%13.78%
Slvjnfhh Kbrgwq Nmhtpz NskwrxlkhqFZDTCEquity Energy25.44%27.80%13.68%
Psbhtfbv Ylsthh Vgpftrfmlb KhGGJLGQFinancial35.88%5.62%12.21%
Kbdsmnlj Nqljlv Whbkkh YnnCYYKZHealth0.81%−0.47%9.90%
Mvdmptxt Ttwqqj Vlnjjj Rhfy Ppqg MZNFKJHealth1.46%0.62%11.77%
Vzmhbbxn Zzfdhf Npzwghwfw XnbbvwpBMNSPTFinancial27.33%13.65%14.71%
Xfthckvj Knjmnw Bjzhsww Gzlh dkv CrcwgqmfXBFHHealth−2.07%−3.22%8.45%
Zzqybjxv Cbgvxh Sqbbfvbqdvhnqmc FlzwjYSPRZHealth21.68%12.93%15.52%
Gcddbwxp Szjztk LnbykhzqrVLNKUtilities14.31%10.02%9.85%
Jgvxgmgf Fyzpqg FtsrrQXYSQQCommunications18.24%−0.28%10.60%
Wgdkdmhh Vwlcymw sxf NrkswkwrzfNDSJCUtilities17.08%7.80%8.79%
Ctzcwchk Vcttdxgx Qqbrxm BmhzwYMHCEquity Energy20.76%19.21%7.70%
Thnyw Jzfgwgmnv Vvp Ddrc vsn Jqmdnb ZHVBTechnology47.78%7.28%17.66%
Cwhhy Knvwgpcyz Rjl Cjsx vls XkgtlZLQCGTechnology48.21%7.57%17.98%
Cntkr Ygznktncg Hyxklw Rmtv Pjhwvm KNLYQGlobal Real Estate−1.35%−5.66%0.99%
Mfdnr Pbywtwfcg Dwqmzn Lfqt YyhxyKYWYGlobal Real Estate−0.97%−5.37%1.29%
Xhlmqlv & Ldclcs Dqph Ppfdrp DMSCTKNSPReal Estate−7.00%−2.67%1.74%
Kfdfmfy & Bwvnxd Jkwx Fjpwtd BXBCPReal Estate−6.06%−1.69%2.75%
Smwrccdwc Wlqftl Hybj QyspfXLYGVReal Estate1.73%——
Wlncbhpz Qdtxht Rczv Zkffxv SxxbcfshZXKZRGlobal Real Estate3.34%−4.12%−0.19%
Xydsks Fnrx Mxfqzz Srh Xmq CrmwvTLZFZReal Estate0.93%−4.02%3.05%
YYB Thqr PqcvkctCHSFFTEquity Precious Metals0.85%−4.43%16.28%
Pwfyrx Blfg Cfrjtg HthlzwtpJVXXWXEquity Precious Metals−4.08%−3.96%9.74%
C. Mfpq Zjtjv Sbyx & Ljrq GsbhyjfgllFMZSBYCommunications36.30%−0.50%11.26%
B. Zwzn Dfgxv Hrrbxfxxp SplwvrnvznWQYXFinancial42.33%6.60%13.50%
H. Ndtb Kslll Mlcqsj Ssmv LnsbgwRFWXBGlobal Real Estate1.03%−3.62%1.27%
D. Hfnp Blhfh Ljkfnq Ktbz Ppjrkz YZMGGlobal Real Estate1.27%−3.55%1.14%
L. Qznt Cdgsz Lsbdtk CtfbsbYMLGGHealth5.51%1.53%10.34%
M. Vgrc Hxtld Klhpwcg & GRCYTBTechnology41.37%3.37%15.39%
B. Qwgh Rntcm Cztfwym & Msrt VtzDHQRBTechnology41.76%3.10%15.00%
VZH Czdmmj Ypmm Zfjvrg DRRPZNCLQGlobal Real Estate7.04%−3.16%6.31%
Tjmkm Plrbbv Kqzg Xdpqpm Cskwv HrcjcvrrFLBCSGlobal Real Estate16.93%−0.57%2.24%
XF® HGPR Hblrqt Gpyc Syyrdb MTKYBGlobal Real Estate3.42%−1.97%2.33%
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List Criteria

Sector Equity Funds

This list includes domestic-equity funds that specialize in a particular sector of the market (based on their investment style over the past three years). Such funds are placed in communications, consumer cyclical, consumer defensive, energy stock, financials, global real estate, health care, industrials, natural resources, precious-metals stocks, real estate, technology, utilities, and miscellaneous fund categories. (Note that funds from some of these categories may not appear in the list depending on the other criteria required.)

Medalist Funds (Gold, Silver, or Bronze)

The Medalist Rating for funds reflects our forward-looking assessment of a fund’s ability to outperform its peer group (funds in the same category) and benchmark on a risk-adjusted basis over the long term. We assign the ratings on a five-tier scale with three positive (Medalist) ratings of Gold, Silver, and Bronze; a Neutral rating; and a Negative rating. If a fund receives a Gold, Silver, or Bronze rating, it means that Morningstar analysts expect it to outperform over a full market cycle of at least five years.

Open to New Investment

All the funds on this list are open for new investment. Sometimes mutual funds will close to new investors when the fund is receiving more money than the management team believes it can invest effectively. Closing a fund under these circumstances is usually considered investor-friendly, as funds that get too big can sometimes suffer performance problems later. Even though new investors can’t get into closed funds (so such funds are not included here), closed funds that are rated Gold, Silver, or Bronze may be worth putting on a watch list.

Share Class Exclusions Applied

Many fund families offer multiple versions of the same fund but with variations on the sales fees that are charged and/or investor qualifications. In some cases, certain share classes may be for institutions (such as company retirement funds) or otherwise have a high investment minimum. We've limited our list to funds that are primarily used by and available to individual, or retail, investors.