Growth investing has been great for American shareholders over the past three years.
While the best-performing U.S. equity mutual funds between 2014 and 2017 fall into several different market capitalization categories, almost all of them are tilted towards or were designed to capture growth stocks.
The S&P 500 returned about 10 percent annually over the past three years, posting a year-to-date total return of 11.67 percent. All of the funds on our list beat that benchmark.
According to Morningstar data, these mutual funds had the best three-year performance as of Monday were:
11. Commerce Growth (CFGRX), 12.83%
CFGRX, a large-cap growth fund from Commerce Bank, returned an average of 12.83 percent annually over the past three years and 8.29 percent over the past 10 years. Year to date, the fund has returned 16.77 percent.
With $110.7 million in assets, the fund’s largest holdings are Apple, Alphabet, Microsoft, Amazon and the iShares Russell 1000 Growth ETF. The fund allocates 21.9 percent of its assets to technology stocks and another 18.3 percent to industrials. CFGRX carries an 0.83 percent expense ratio and requires a minimum investment of $1,000.
10. Morgan Stanley Multi Cap Growth (MCRTX), 12.86%
Morgan Stanley’s $385.1 million Multi Cap Growth Fund returned an average of 12.86 percent annually over the past three years and 10.99 percent over the past 10. Year to date, the fund has returned 32.70 percent.
The fund’s top holdings include Amazon, Facebook, Alphabet, Tesla and Illumina. MCRTX allocated 53.3 percent of its assets to technology and another 26.5 percent to consumer discretionary stocks. With a minimum investment of $10 million, the fund carries an expense ratio of 84 basis points.
9. Virtus KAR Mid-Cap Core (VIMCX), 13.07%
A mid-cap growth fund, the Virtus KAR Mid-Cap Core portfolio offers three-year annualized returns of 13.07 percent. It has returned 10.96 percent year to date.
The fund carries $101.4 million in assets, with a minimum investment of $100,000 and an expense ratio of 0.95 percent. Investing 22.8 percent of its assets in industrials and another 17.5 percent in health care, VIMCX’s top holdings include Globus Medical, AMETEK, Signature Bank, Skyworks Solutions and Aspen Technology.
8. Virtus KAR Small Cap Value (PXQSX), 13.08%
PXQSX offeres three-year annualized returns of 13.08 percent and 10-year returns of 8.8 percent. Year to date, the fund has tilted more towards Morningstar’s small-cap growth category, returning 20.93 percent thus far.
With $386.1 million in assets, the Virtus KAR Small Cap Value fund allocates 26.6 percent to industrials and 15.7 percent to consumer discretionary stocks. PXQSX’s top holdings include Re/Max, Cinemark. National Beverage Corp., Graco and Core Laboratories. The fund carries a 1.05 percent expense ratio and requires a $100,000 minimum investment.
7. Buffalo Large Cap (BUFEX), 13.27%
BUFEX, allocated towards large-cap growth, returned an average of 13.27 percent over the past three years and 8.53 percent over the past 10. Year to date, the fund has returned 16.18 percent.
The Buffalo Large Cap fund allocates 27.5 percent of its $67.9 million in assets to technology stocks and another 26.9 percent to consumer discretionary. Its top holdings include Microsoft, Apple, Amazon, Roche and Alphabet. The fund carries an expense ratio of 95 basis points and requires a $2,500 minimum investment.
6. Touchstone Large Company (DSMLX), 13.28%
Touchstone’s Large Company Fund boasts three-year annualized returns of 13.28 percent. Year to date, DSMLX has been one of the best-performing U.S. mutual funds, returning 29.4 percent.
The fund has an 88-basis point expense ratio and a minimum investment of $500,000. Top holdings include Facebook, Alibaba, Tencent, Alphabet and Regeneron. The fund allocates 33.2 percent of its $212.1 million in assets to technology stocks, with another 24.5 percent going to consumer discretionary companies.
5. - Columbia Small Cap Growth (CSGYX), 13.48%
The small-cap growth CSGYX delivered three-year annualized returns of 13.48 percent to investors, offering 24.22 percent in returns year to date.
The $428.2 million Columbia Small Cap Growth carries a 0.97 percent expense ratio and requires no minimum investment. With top holdings including Fair Isaac Corp., Blackbaud, Veeva Systems, Paycom Software and Ollie’s Bargain Outlet, the fund allocates 28.5 percent of its assets to technology and 22.4 percent to health care.
4. Morgan Stanley Institutional Advantage (MPAIX), 13.66%
MPAIX offered investors average returns of 13.66 percent over the past three years and has returned 20.49 percent year to date.
Morgan Stanley’s Institutional Advantage fund requires a minimum investment of $5 million and carries an 85-basis point expense ratio. With total assets of $101.9 million, the fund’s top holdings are Amazon, Facebook, Alphabet, Mastercard and Morgan Stanley’s Institutional Liquidity Treasuries Portfolio. MPAIX allocates 32.4 percent of its assets to consumer discretionary stocks and another 26.5 percent to technology.
3. Federated MDT Small Cap Core Institutional (QISCX), 13.70%
Federated’s MDT Small Cap Core fund delivered three-year annualized returns of 13.7 percent and 10-year annualized returns of 6.34 percent. Through July 31, the fund had returned 7.3 percent this year.
QISCX’s top holdings include Children’s Place, Syntel, Deluxe Corp, Cabot Microelectronics and Impax Laboratories. The fund carries an 0.89 percent expense ratio and requires a $1 million minimum investment. With $230.9 million in assets, 28.4 percent of the fund is invested in financial services stocks, while another 16.1 percent is in technology.
2. Federated MDT Small Cap Growth Institutional (QISGX), 14.67%
The growth version of Federated’s small-cap portfolio returned 14.67 percent annually over the past three years, posting 10-year average annualized returns of 7.82 percent. The fund has returned 15.47 percent year to date.
A quarter of the fund’s $195.5 million in assets are invested in technology stocks, with another 21 percent in health care. The fund’s top holdings include Deluxe Corp., Children’s Place, j2 Global, PRA Health Sciences and Evercore Partners. QISGX carries an expense ratio of 89 basis points and requires a $1 million minimum investment.
1. Shelton Nasdaq 100 Index (NASDX), 14.89%
The best-performing mutual fund of the past three years is a simple index fund that delivered average annualized returns of 14.89 percent. Shelton’s Nasdaq 100 Index has given investors 21.35 percent returns year to date through July 31 and 10-year average annualized returns of 12.5 percent.
The index fund carries a 0.49 percent expense ratio and requires a minimum investment of just $1,000. Similar to its Nasdaq 100 benchmark, the fund has 52.5 percent of its $469.4 million in assets in technology stocks and 16.3 percent in consumer discretionary stocks. NASDX’s top holdings are Apple, Microsoft, Amazon, Facebook and Alphabet.
