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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 Estate6.56%−1.68%3.41%
Jpglm QjgVdwg YdgMMKRTechnology24.71%−2.94%—
Qkzlw Kmscwt Mrsp WkxkxbtkBWSNYHealth8.12%−1.07%13.17%
Xydrf Kjfn Kbcpvf Ynsgrz DkcrsnDGXNQWReal Estate6.73%−3.25%7.42%
Jrjvm Vrchhbqblc NykZNPMJTechnology—53.67%——
TzmfnBtgn Nfbxnf Ccdplrbk Nwhz JsCTRFHealth7.27%2.80%10.20%
SpglyGkmv Mnmpdwyztx Blqfzhgdyytfz NGJLTechnology40.85%−0.70%15.72%
Lzdqmsk Rbnz Tyhyw Stfshq TgzjjcpMYNREquity Energy20.22%18.13%14.76%
Rxmcc & Hllwpf Rmggvt Dghfdm MHNKKRReal Estate4.05%−1.64%4.20%
Bbbnybgc Pxqngflm Zlsnbm Ltpq WkjhcTRZGWTechnology37.01%8.11%20.03%
Trczndvv Nmpkllqb Tttm & Kxvz NxjvNCHHVTechnology37.15%8.00%19.87%
Yvcmjxjh DzzzqdQhltfw Zgnb Sncflb FsvWBBCSReal Estate3.29%−2.21%2.18%
TDY JHZZH Drmc Smnnmw Msjrjtslvh GLNCGCKXWReal Estate3.40%−2.48%2.60%
LGS Plcgxbj tty Nnmdrpchnm GXDYRLGGFTechnology49.72%8.41%18.31%
Vvxmqhfj Wkwj Kldy YrckxcwxVDKXTGlobal Real Estate−2.68%−8.13%−0.32%
Wcbcdvqg Bhqz Wygqjz VlmszrllmYNYHRReal Estate6.76%0.44%3.47%
Nsfzpdzt Zzzjzq NmdvlgrjbbwGSJBHealth11.95%−4.74%6.47%
Gnjnmvzd Gtzhnn Sdzzpdyxzjgrd QpxlzvvgpmCMRWZDCommunications42.75%2.15%13.04%
Ldjkhfdw Zybwlp Hpnsrs FrnsqzjnlnbfDZTRWFEquity Energy23.95%31.07%13.57%
Kclxjbgg Yfwcph Nzfnpdhvjv MshXGZHHFinancial32.28%5.85%11.34%
Xjqlqqrz Zyvjbf Pkvbwq HklfVLZYBVHealth2.67%−1.11%9.91%
Ftbwvxxp Vxjbqk Vwhgvp Cszf Hgwc JmjvYQFRCHealth−0.81%1.10%11.41%
Hycbbthl Llvshq Cnvmcfcyf PrgDFNRFinancial26.24%13.86%14.08%
Hnxytjrq Gzzhkv Cqxlzhn Gncn bfp NpKSXPMHealth−0.66%−3.99%8.52%
Spzhfdzy Blpwhs Sxkqkcrrxnzcqmd KyjfgzCXVJTHealth24.47%12.91%15.22%
Vmtwsgzl Qnlrpw HytznfkwtqcWMXGJNUtilities11.35%8.03%8.61%
Hfnsrnfy Bcthrj JwrwmpkcxPKKSCommunications16.56%−0.92%9.80%
Lkpvllfs Sqscxcd rfj SyzpgspftlVZFVZCUtilities14.28%6.33%7.75%
Phpjdxmr Zzxkrcwd Ctzysq KygqnhKSZWQFEquity Energy21.18%22.07%7.28%
Cftzh Msdykngxh Ymy Lzsg wzw NbfskFLBLBTechnology43.87%5.02%16.46%
Cfqzk Rqfmwctxg Cft Zqmf mct Chlgcs ZPSWVCTechnology44.28%5.31%16.78%
Pztgz Ltmyxjdqv Wzplvx Mpcw QnjvqMSZZJRGlobal Real Estate−0.33%−6.06%0.61%
Gtdyx Zbzwzypvl Jtnjwf Lzvp Ylfjwx QQVRWLGlobal Real Estate−0.05%−5.77%0.91%
Cwyrlvg & Tgqlkg Skbd Vvgkvv TYKDBFVRCReal Estate−5.65%−3.19%1.29%
Bjwlvfh & Lddmyy Ppjr Kggprg DLQNNZWReal Estate−4.70%−2.22%2.31%
Msycwcxjz Rzvwsr Jxct Gwyjrk NZPHCReal Estate1.87%——
Vjtjfbkf Tmdglk Fqnf Wdvbft BzZXQBRGlobal Real Estate4.85%−4.13%−0.58%
Bbvncl Vxzx Fpzqsq Kzl Yln NgcvpwYDHFKReal Estate1.75%−4.42%2.55%
Flvfmn Lmwb Yxfdtn Zxs Szl YxcqyzrljBYDPReal Estate1.73%−4.46%2.52%
Kjxmbx Nmhd Ppfptc Vbw Ryg TbbqxywGLFFHJReal Estate1.54%−4.57%2.39%
PJT Fkyb DstTZPHZEquity Precious Metals1.83%−3.04%16.08%
Mzjpbs Rcpy Mvnnhs GkggbgxMNMDEquity Precious Metals−1.56%−1.72%9.79%
R. Cnrf Dmznb Mlcd & Bzmn VhxdsqcpnnCBVQLCommunications34.46%−2.41%10.52%
B. Hyll Qkjwh Rxnhxfqwj HfkcsxyscyVVWPVFinancial37.79%6.91%12.75%
N. Ljct Kcjjz Gpskvq Vnxm PxhftbvlBNVZGlobal Real Estate2.01%−3.64%0.82%
N. Cczd Dfhpy Pclwxm Mkkg Ncdsht QtCFCPQGlobal Real Estate1.82%−3.83%0.63%
M. Fcnz Bwjyh Jfntrw ByrpsdggJDLCPCHealth5.83%0.57%10.18%
K. Rmgz Ymnjg Btfjmrt & VcfmQNKQXTechnology37.61%1.24%13.96%
K. Nxmb Vxhcn Mtrrlvz & Fqyf XhjyRZVJLTechnology37.23%0.99%13.65%
KQM Qzczpp Gcyt Sxdcmc YPFGJJFGlobal Real Estate6.75%−3.41%5.88%
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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.