The MFS Growth Fund Class A (MFEGX) has gained by 3.2% YTD (year-to-date) in 2016. This rise makes the fund figure among the above-average performers in the year so far, among the 12 funds we’ve chosen for this review. In the past year until July 15, the fund has been the best performer among peers.
We’ve graphed its performance against two ETFs: the iShares S&P 500 Growth ETF (IVW) and the iShares Russell 1000 Growth ETF (IWF). Let’s look at what has contributed to this good performance by the fund YTD in 2016.
Portfolio composition and contribution to returns
Both consumer-focused sectors—discretionary and staples—are among the top three positive contributors to the fund in 2016 so far. The consumer discretionary sector has been helped by Dollar Tree (DLTR), Comcast (CMCSA), and Dollar General (DG), among others. Meanwhile, the consumer staples sector has been led by Constellation Brands (STZ). One of the reasons that consumer staples have done well is because of the absence of major negative contributors.
The materials sector closely tail staples and represents the third-biggest positive contributors. Vulcan Materials (VMC) and Sherwin-Williams (SHW) have benefitted materials. Similar to staples, the absence of any negative contributor has been of great help to the sector. While Equifax (EFX) has helped industrials, American Tower (AMT) has helped financials up.
The healthcare sector has been the sole negative contributor to the fund in the year so far. Alexion Pharmaceuticals (ALXN) and Regeneron Pharmaceuticals (REGN), among others, have led the sector down. However, Danaher (DHR) has been able to reduce some of the drag.
MFEGX has been having an above-average 2016. The good thing is that just one sector has dragged on its performance. But on the flip side, except for consumer discretionary, no sector has been a standout performer for the fund. YTD, it has underperformed the SPDR S&P 500 ETF (SPY).
However, the fund’s stock picks from consumer discretionary, financials, and materials have done better than those making up these sectors in SPY. Existing investors have little reason to move away from the fund, while potential investors might consider including it in their shortlists if some aspect of MFEGX is appealing to them.
We’ll look at the JPMorgan Large-Cap Growth Fund Class A (OLGAX) in the next part of our series.
The JPMorgan Large-Cap Growth Fund Class A (OLGAX) has dived by 3.9% YTD in 2016. This decline makes it the worst performer among our 12 funds.
While the overall cannabis sector experienced weakness on April 23, some stocks managed to gain some positive momentum in the first half of the day.
After being listed on the NASDAQ (QQQ) on March 29, Lyft (LYFT) stock has traded on a negative note so far.
Coca-Cola (KO) impressed investors with better-than-expected revenue and earnings for the first quarter.
Microsoft (MSFT) announced this month that it had acquired a San Diego startup called Express Logic for an undisclosed amount.
Spirit Airlines is scheduled to report its first-quarter results on April 25. The airline has an impressive record of beating earnings estimates.
On April 23 before the market opened, legacy motorcycle maker Harley-Davidson (HOG) reported its first-quarter earnings results.