2020 was a banner year for equity mutual funds and ETFs, which posted an average 15.63% return, but alternative energy funds far outpaced those gains, according to Refinitiv Lipper.
Alternative energy funds returned 98.98%, which was the strongest one-year return in the history of the fund tracker’s equity universe, which dates back 50 years. It was the best-performing category for domestic and world sector equity funds for 2020. Global science and technology funds gained 65.31%.
On the flip side, natural resources funds had their worst one-year performance among U.S. funds in 2020, dropping 28.75%, while global real estate funds were the poorest performers among global funds, losing 5.05% of their value.
Climate change was clearly a major theme in the performance of the equity sector funds.