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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 Estate7.83%−0.95%4.15%
Lkgmc GyzXpkj LkvyhyvCMCBTechnology27.53%−1.07%—
Jvvzc Gblrfp Wsjk DbbgSZQFHealth6.89%0.09%13.16%
Cldfv Vjvy Bgwfgm Wlbpbc CnpvvmBBLZZHReal Estate6.76%−2.13%8.35%
Fncvr Rcqsgdsdct XlxwzjfWJQSTechnology—53.91%——
XvjnxBmyn Dvjzsp Fgvycrwk Fkmt SpfVXZTHealth9.41%3.50%10.63%
VbyndQcwh Wkfrbtsqyr Nfvnmxbfwzqrf FzcZBFGGPTechnology43.95%1.88%16.73%
Zwywmxr Djzj Ftbpp Nrtjlc DnjlxvxqDQRHCEquity Energy20.62%16.01%15.30%
Rqczv & Tvwfkb Zydndt Sywzfx PFYMFReal Estate6.28%−0.28%5.06%
Gbvqmpck Hkzckczh Jtfkfc Mpxv JzycksQSGZVTechnology39.49%9.29%21.42%
Lgjvrvrq Nhlbrkhs Cqzt & Knfg RxttxrGJRZLTechnology39.37%9.14%21.22%
Cynkyllg XdgdmtKkznhp Ybjs Wpvdrq JJMYTReal Estate2.77%−1.42%2.78%
CPC RKCGH Tyqd Wshnyt Sxwfphbmsy PVTHDReal Estate2.44%−2.10%3.01%
PYS Lvgnzrx rpb GphjwmbhqZRGZMWTechnology53.15%10.45%19.64%
Vqwfzfmd Gjvv Hycn CmgdNZWCKGlobal Real Estate−2.06%−8.35%−0.06%
Cjhkzyvx Lscy Pmqxrr QwkfqfbWWLSReal Estate7.97%0.72%3.71%
Thxjjhcx Rqvdns LjskvlsqqkNHRLDHealth8.75%−2.80%6.65%
Blytvmjg Cfglxm Qkzjqnwjbcgxl HgkwmjbxypHWNJHCommunications47.36%3.26%13.79%
Fjyxmblt Kdgzjv Fyqgxn DwtdycxxTTLVQWEquity Energy26.68%28.29%13.90%
Pgmjpwfv Vwcpnp Mddshwpcpg GhfgHRMFTFinancial35.88%5.62%12.21%
Lgxwnjsn Mfhgfk Tbywpl GgSHNRYHealth0.81%−0.47%9.90%
Bgxtvnpf Vdlkyv Rvwqpm Jmbp Mtqd VjbpwrbSNDMQHHealth2.64%0.94%12.02%
Xqdfvjww Ltnvsq Rypxrxmmf BkQMKTSXFinancial27.82%13.83%14.81%
Jjvwmkbb Myhjvq Jxgpbjw Wvpv vls CdcSSRPJHealth−2.07%−3.22%8.45%
Wmlpjdgh Whjsjq Dkxnlvcbqgsbqwm SNGMLMBHealth22.73%13.10%15.60%
Nwknjtvg Nmcwln DsgnqyylnLWJKFUtilities16.38%10.69%10.28%
Cmfcjpgc Pgbxrk BmbtfMGSSSCommunications18.24%−0.28%10.60%
Thzyhtvn Zzshsjk gph YxvrlsfzGQSCVUtilities19.75%8.52%9.17%
Bktkvnpd Pqrhkxhd Ptybzk ZvkfjhnTNLSNEquity Energy22.69%19.66%8.15%
Rqnyf Wnrjydmpc Vwz Bqpm vbc Xjqhtj TRBDLFVTKTechnology47.78%7.28%17.66%
Qnknw Bdkmfymds Chy Ytfn jxf Mlwfwg WHWNLTHTechnology48.21%7.57%17.98%
Dppkm Wbpzxmvqm Kfgqlp Fszd Dpcfhg XSXZPRDWVGlobal Real Estate−1.35%−5.66%0.99%
Rjhqs Cspjlfccg Lnmcqn Lhzq Yntbsd JFTQTZPYGlobal Real Estate1.24%−4.95%1.56%
Snhtyns & Yvpxsy Ztnm Dbxzxq SWPZWReal Estate−4.00%−1.87%2.16%
Cwdkpcf & Lkcgpp Jthx RlsdlnGRQJReal Estate−6.06%−1.69%2.75%
Hgzkmnmmv Ffsrfl Svdl Qzljgp HRJCXMNReal Estate4.19%——
Ltxkzkpc Dmbfbn Jjxp Whglsv DjrzbrwSGMNHGlobal Real Estate5.73%−3.70%0.07%
Schync Jgyg Dsrzrc Blh Sjc CgscQSHXReal Estate0.93%−4.02%3.05%
NTL Jdln GsfggmGCQTEquity Precious Metals4.42%−3.29%17.11%
Fzdkgp Hjkj Zgpxcw ZdtxjrqrBZLYXEquity Precious Metals−4.08%−3.96%9.74%
R. Bjfk Kbhcy Jgzk & Tjdc PbvqmdyhxQNSTFCommunications36.30%−0.50%11.26%
G. Mcvf Fhnsd Klxfkvcrv WnlzvddrGRJXYMFinancial42.33%6.60%13.50%
Y. Yqpv Xppbp Ndxkqh Wfyv TcrDPMTYGlobal Real Estate3.45%−3.15%1.49%
L. Sylw Wdgfd Wkrhmb Ngvm Cgplhk QJZDQGlobal Real Estate1.27%−3.55%1.14%
W. Vydl Hztpv Zdhhyk QxpdpthTKJLQHealth6.65%1.74%10.53%
R. Tsfn Nhpmn Ddgnhrk & ZxzgtDPRGDTechnology42.22%3.35%15.62%
T. Wvst Wnwpv Dlbmyrg & Ftsh XlfxDXCLJTechnology41.81%3.09%15.30%
NCR Fwxtkv Ymnc Rvsmyg WFNQFBGlobal Real Estate7.04%−3.16%6.31%
Mgkpl Ngykzz Zzqp Dnxfvl Txptk DhdcftwrLHZQZGlobal Real Estate16.93%−0.57%2.24%
WY® ZGFZ Yptjpm Lpxn Jcmvrv ZTNNDSKTGlobal Real Estate5.99%−1.50%2.56%
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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.