Barrons

Fund of Information

Tracking the Giants

Fund Net
Assets
(billions)		 Investment
Objective		 3-Year
Return		 1-Year
Return		 One-Week
Return
Fidelity Magellan $72.04 Growth 105.00% 44.65% 0.75%
Vanguard Index 500 59.32 S&P Index 135.09 47.45 1.04
Washington Mutual Inv 45.10 Growth & Income 130.11 47.37 -0.47
Investment Co of Amer 44.27 Growth & Income 111.88 40.82 0.45
Fidelity Growth & Income 43.49 Growth & Income 121.20 43.12 0.46
Fidelity Contrafund 33.93 Growth 117.51 41.76 -0.21
Vanguard Windsor II 28.75 Growth & Income 134.28 48.76 -0.12
Amer Century 20th Cent Ultra 25.53 Growth 120.25 44.98 1.33
Fidelity Equity Income 24.66 Equity Income 113.54 41.43 -0.50
Fidelity Adv Growth Opp T 23.58 Growth 105.27 38.10 -0.02
Through Thursday
Source: Lipper Analytical Services

Questions:

  1. Over the last 3 years, the best performing fund has been the Vanguard Index 500 fund? Does it follow that the other funds under performed the market? Why or why not?
  2. Assume now that the Fidelity Magellan fund argues that its under performance is due to its disproportionate holding of cash and bonds over the period. How would you respond?