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2025 Performance For 10 Largest Active Funds

Observant1
in Fund Discussions
"The end of the year is when investors take stock of their portfolios.
They evaluate how their investments fared and decide on changes.
To that end, I thought I’d review how the 10 largest actively managed mutual funds have done."

"It’s good news. All but one had double-digit returns, and they all outperformed their peers.
Markets got over their worries about tariffs and an artificial intelligence bubble to post nice returns.
Overseas funds fared even better as foreign equities outperformed US stocks and the dollar fell,
making foreign currencies even more valuable."

https://www.morningstar.com/funds/10-largest-active-funds-had-an-awesome-2025

Comments

  • stayCalm
    Wow -- near sweep by American Funds.
  • Old_JoeOld_Joe
    edited December 2025
    American Funds Growth Fund of America
    American Funds Balanced
    American Funds Washington Mutual
    American Funds Fundamental Investors
    American Funds Income Fund of America

    Owned all of those (and a few other American Funds) at various times when we were in the accumulation phase. We did very well by American Funds.

  • MarkMark
    edited December 2025
    Being self-employed I never invested with them because of the front end load. My loss perhaps. I am glad that I locked unto their Capital Group managed ETF's however.
  • Observant1
    edited December 2025
    I previously owned AF Fundamental Investors (RFNEX) in my 401(k) and AF Balanced (RLBGX) in my HSa.
  • davidrmorandavidrmoran
    I don't know how many years ago I decided to exchange my large (for me) positions in Contra and Ponax (too big, too risky, too something else) for more-conservative ETFs. Sigh.
  • Sven
    American team management structire is unique in MF industry. Had good result with AF New World fund in the past. Now have few of their ETFs and equally good result. Only thing i am watching is the private equity they got into this year.
  • Observant1
    "American team management structure is unique in MF industry."

    Some (all?) of the founders of PRIMECAP Management formerly worked at AF.
    Like AF, PRIMECAP also uses an approach where individual portfolio managers
    manage "sleeves" of a mutual fund independently.
  • rforno
    I own several AFs in my long-long term account, and my entire 403(b) is in RWMGX. I've been very pleased with their performance, management, and investing style.
  • WABACWABAC
    On my equity watch list POSKX has come from back in the pack to lead CGDV at the last pole. It could be a photo finish.
  • Observant1
    edited December 2025
    Vanguard's PRIMECAP-managed funds have performed very well YTD (as of 12/24 market close).

    VPCCX: 32.00%
    VPMAX: 31.52%
    VHCAX: 27.90%

    Edit: Updated YTD performance to reflect 12/24 returns.
  • Mav123
    Mark said:

    Being self-employed I never invested with them because of the front end load. My loss perhaps. I am glad that I locked unto their Capital Group managed ETF's however.

    I never heard of these ETFs. What is so special about them as compared to others or mutual funds?
  • Observant1
    edited December 2025
    Those who appreciate American Funds mutual funds may also like the Capital Group ETFs.
    https://www.capitalgroup.com/content/dam/cgc/shared-content/documents/session-docs/Capital_Group_ETFs_compared_to_popular_American_Funds_mutual_funds.pdf
  • rforno
    Observant1 said:

    Those who appreciate American Funds mutual funds may also like the Capital Group ETFs.
    https://www.capitalgroup.com/content/dam/cgc/shared-content/documents/session-docs/Capital_Group_ETFs_compared_to_popular_American_Funds_mutual_funds.pdf

    Yup, their ETFs are pretty solid, I must say.

    If/when they ever launch ETF clones of their OEFs that can be exchanged tax-free, I will jump at that opportunity for sure.

  • PRESSmUPPRESSmUP
    Observant1 said:

    Those who appreciate American Funds mutual funds may also like the Capital Group ETFs.>

    Their ETFs do look solid. This past year I began to transition a sizable portion of my taxable holdings into TAIFX. As I get older, I need to simplify my finances, and a solid blended fund of global holdings along with a tax-aware strategy seems like just the ticket.

  • hank
    edited January 1
    A link here to a Faber interview with Rick Rieder in which they chat quite a bit about how much end-of-year performance really means. I've linked the thread containing the interview to avoid cluttering up this thread.

    American Funds often comes in near the top. Must be doing something right. I've never owned their funds but wish I had. Kudos to @Old_Joe who owned them in the past and has spoken highly of them for a good many years.

    If it was as easy as "1, 2, 3" we could all load up on the top performers and be super rich together in a few years. It is not, of course. Missteps are part of the process. (Except for one individual).

    For moderate risk appetite investors, here's how a few "middle of the road" or conservative funds fared over 1 year according to M* as of today:

    PRWCX: +12.46%

    DODBX: +14.44%

    LCORX: +15.01%

    ABRZX: +8.18%

    TRRIX: +11.18%

    PRPFX: +30.35% (Huh?)

    I have owned all of these in the past. Did not own any of them in the last year.
  • mskursh
    edited January 1
    My parents got put into American Funds mid 00's and its been largely a middling pile of meh for them compared to other options. prior to the past few years, they've all basically underwhelmed their categories (outside of their global options that skew US) since like 05 when they moved over largely convinced because the funds had spent decades prior as world beaters.

    They've been ok the previous few years as I've said but still not really all that impressed and overall their portfolio has underperformed by a small bit compared to a similarly allocated index portfolio. The biggest loser has been Growth Fund of America which has been their large growth option which has underperformed incredibly over that time period.

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