10 funds that consistently beat the S&P 500

We here at DollarBits continually suggest that most people would be better off simply investing their hard-earned money in an index fund. Given that about 90 percent of all actively managed funds under-perform their respective indices, it’s hard to find solid reasons to support active management. However, there are funds which consistently beat the market.

Our friends at Morningstar amassed a list of funds that have beaten the market:

There are several disclaimers that Morningstar makes about this list, including:

Some caveats apply. First and most importantly, we aren’t making a call as to whether these funds will continue to outperform the S&P 500 index. (In some cases, the S&P 500 may not even be the fund’s prospectus benchmark.) That said, the funds listed here all garner medalist ratings, which means we do expect them to outperform their respective categories over a full market cycle.

Second, I included the funds’ expense ratios in the table, though it wasn’t one of my screening criteria.

As you can see from the table, the expense ratios areĀ much higher than those found among most index funds.

When considering any investment, the usual caveats and disclaimers about past performance being no guarantee of future results much weigh into your investment decisions.


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