What You Need to Know
- Value funds outperformed growth funds in 2021 but lagged considerably over the past 10 years.
- The outperformance of value funds in 2021 was concentrated in the first half of the year.
- Small-cap and mid-cap value funds were the standouts in 2021 but not the biggest laggards over the past 10 years.
Don’t expect the rebound in value funds in 2021, after years of underperformance, to last.
According to a recent report from Morningstar data journalist Katherine Lynch, the bounce-back was most evident in small- and mid-cap funds and limited primarily to the first half of last year.