Equity Funds Up 16.6% in 2010 on Big Q4 Gains

Lipper data shows that this fund group improved about 10.5% in the fourth quarter

For 2010, equity funds ended the year up more 16.57% on average, according to Lipper data released Jan. 7. These funds moved up a whopping 33.73% in 2009, after dropping -39.54% in 2008.

Popular equity funds had a good year, as well. The Vanguard Total Stock Fund (VTSMX, VTI), for instance, was up 17.09% in 2010, and the Fidelity Contrafund (FCNTX) improved 16.93%.

The Pimco Total Return Fund gained 8.86% last year, while American Funds Growth ticked up 12.29%.

In the fourth quarter of 2010, equity funds improved 10.45% on average. This follows a 12.52% jump in the third quarter, a drop of -10.42% in the second quarter, and an uptick of 4.64% in the first quarter, Lipper data shows.

These funds gained 3.73% in October, dropped -0.01% in November and ticked up 6.43% in December – for the best December performance since 1999, according to Lipper senior analyst Tom Roseen.

Q4 2010

U.S.-focused equity funds have improved 11.41% in the fourth, including small-cap growth funds, which have added more than 16% in the final three months of 2010.

Vanguard Total Stock gained 11.66% in the period, while the Fidelity Contrafund jumped 9.45%, according to Lipper.

In addition, world equity funds ticked up 7.83% in the fourth quarter and 13.67% for the year. Within this broad category, Japan funds top the list with a fourth-quarter gain of more than 12.73%.

Sector funds rose 10.69% in the quarter and more than 19% in 2010. Natural-resources funds were up 21.16% for the quarter and 21.30% for the year, while precious-metals funds grew 14.56% and 43.57% respectively.

Funds focused on U.S. financial services gained 11.53% in the fourth quarter and 11.85% for 2010, while global financial-service funds improved 6.67% in the final months of 2010 and 10.72% for the full year.

In 2011, Roseen suggests that quality earnings could continue, along with an improving economy. 

Reprints Discuss this story
We welcome your thoughts. Please allow time for your contribution to be approved and posted. Thank you.

Most Recent Videos

Video Library ››