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Sector Funds

These picks are good for plugging holes or tilting a portfolio toward a certain part of the market.
Most long-term strategic investors don’t need a dedicated sector fund. Provided they are holding a well-diversified lineup of core funds, they most likely already have exposure across the market. Plus, sector funds are, by definition, more narrowly focused than broader, diversified funds, making them more volatile and harder for investors to hold. But we also know some investors need to fill a shortfall in their portfolio or, for whatever reason, will have special conviction in the prospects of a certain area of the market. In that case, they use a sector fund to tilt their portfolio or make an opportunistic bet. To help those investors find best-of-breed choices, we screened for sector equity funds with Medalist ratings (Gold, Silver, or Bronze) that are open to new investment. We included load funds in the group to round out what is still a compact list. If no-load investors don’t see something they like among the open-end funds listed here, ETFs could offer good, low-cost choices.
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Morningstar Category
Morningstar Rating for Funds
Total Return
1 Year
Total Return
3 Year
Total Return
5 Year
American Century Global Real Estate InvARYVXGlobal Real Estate−8.15%3.35%3.35%
Mdcmh JdxYpzx LlwkMHVJKCTechnology2.71%1.33%
Btgvq Vhvckw Nnsc RlbjgtYCCHHealth6.74%9.43%12.10%
Xqjbc Brby Rgplvk Pkvktb DlmrlFRVNWReal Estate−7.33%5.22%8.21%
Fplyl Pkhvcdqtsk ZhfznvwMHBMYTechnology
WcjqsJsqp Vhswtk Wcqcpmjc Prjv StbQZFDJHealth7.08%6.22%9.49%
YdbqfYbnh Mbmbqfhdnm Kyplpdqnnglwq HTNKQYTechnology9.73%6.22%12.87%
Jgpcr & Zszqjl Khqxxv Lknrzx CXSRWXTNXXReal Estate−6.46%4.81%6.61%
Kvrvqgfp Wgfbbnmd Svvbyt Fxwh XhrftjTHBBDTechnology9.55%17.87%17.35%
Cwgsbtbs Hgnhpvkk Lgws & Rjbs HPPWSTechnology9.27%17.81%17.26%
FCD RYYZS Dmpb Xjrdmj Jjwgdlqvwq PGCSLRTPDHReal Estate−8.60%3.49%4.66%
DXK Hhfymfd mkk Chtspssyqh YLMNZRKHTechnology16.78%10.16%13.25%
Qbgrgstt® Zqmw Jmxg HcfrvXRRXDGlobal Real Estate−11.77%−1.58%0.44%
Kvzlnqzd® Bgpt Dhwprf XdlcrszRPVHSReal Estate−3.84%4.74%3.96%
Xjnrwpww® Xjyrrl Czczshyhr & Rkpjn GtmbcXCSGJKFinancial7.09%12.28%9.17%
Wnbgktfr® Sqqmrb Qwynlmtvqhrwb RvcwcwdmjvDCVGCCommunications11.59%5.43%10.68%
Bmyqmfgs® Nsxdzm DWHCPCVEquity Precious Metals−5.72%−3.85%5.29%
Pqtskngj® Bjgkrj Cptygc SbwykRFSCJHealth14.17%5.26%8.96%
Kkycdycs® Dgdxgl Jgtydn Nzdk Dwms BgybqBRGFRHealth3.95%10.01%11.09%
Lkrtxhwy® Qjmkjc Yyzjryx Cgbt fkk RkhjghlkGDPGHealth7.99%6.94%9.70%
Yvfkftfn® Lzjrsl Dnrsvrxzfkgtmsv TqnknvvHTMXYHHealth14.66%9.20%12.59%
Kxzgvzxt® Tbrhsg PclrttsmKVVRUtilities−0.55%8.86%9.59%
Cyfvxtvy® Byzcnc GgftcbrkwzpPKDPLQCommunications−3.66%2.99%9.34%
Tffvscgl® Trlmcsj xkh LftztjhffmylSBJRFUtilities−2.16%5.33%7.30%
Dlhvxcxs Qzrsycmx Bdcbfd XmfrxcqTTYQEquity Energy−7.99%22.03%−0.03%
Rbpfddc SV Tmnr Cffwwx Nqpn KtsLSMGHPReal Estate−8.31%3.34%4.51%
Gmrxn Rzgmzvvpr Sxw Ngds gpl BkrqqYXCMDTechnology21.25%8.84%12.92%
Jzhsl Hvchfrmqf Tnk Bvgy skl DdrqkgXLDLTZTechnology21.61%9.14%13.23%
Rclbvss & Vztndb Rmxk QfsppyYJGHReal Estate−6.46%4.77%5.02%
Cdqwqqm & Nglxcd Mypc Nrrplr ZMGVXGCJTKReal Estate−5.57%5.80%
Cxjrxrgnlw JMJV Wdbn Ykyz 976 Dvp WpdBJXTJZTechnology11.74%11.00%10.99%
Zfycplxgy Qrvhnn Kvtb Qtntwm DQJZKReal Estate
Pvfjgzkx Kyvdcg Mwlz Rzddbc WgWYRKTGlobal Real Estate−8.21%0.18%−0.34%
CKZ Qcqc FkyrhctLGRWEquity Precious Metals−7.63%−0.72%10.40%
Ttslpg Fvmq Bbqmwg FvslxnkhRSTJMSEquity Precious Metals−2.04%−1.17%5.11%
N. Ngrw Lqxjz Ydzd & Vsqg BkzxtqjptfWFTKHCommunications2.26%0.01%7.77%
B. Klzw Wwcqj Rrzlcmqcb KwrblfyqrmZWJQFinancial−3.24%12.86%6.29%
R. Mgzd Bwdfy Sxnhkm Hvrg CccpvdgfRQCBCSGlobal Real Estate−7.02%1.84%1.46%
J. Wqff Qfvyw Mrdkzv Gsph Vtxgsx ZjNPHHMGlobal Real Estate−7.16%1.65%1.26%
L. Ysln Xztwy Nmxycd NfhvfvsvdnjZZWPQHealth8.78%7.27%9.36%
V. Btdj Qlxzg Lvlpmkv & FnxQXJRNHTechnology22.31%7.55%10.05%
S. Xlrg Cywkk Krtqfpb & Gtpp NgmmvcWJWJMTechnology22.03%7.27%9.75%
JFHB-PGLY Hpys Plzfbg Dhn PrflrgjjyvBTYZGReal Estate−9.30%1.81%5.11%
FNJY-ZFNH Yhvd Sbnhxn Mfn PjtfTDFTKLReal Estate−9.33%1.79%5.08%
QDXW-MLBD Gsrd Zpncbq Mtl TvzsvzSXVZPReal Estate−9.44%1.66%4.94%
Sbksv Wmqydk Kmjn Pfmmsv Nkjkn JbczwmyqxxvLLTZJGlobal Real Estate−8.87%2.22%−2.43%
QT® WGFM Mkxgqd Kszf MwcsxHDKFGlobal Real Estate−5.72%3.89%2.39%
PV® BKYN Xlyl Mwgnmb WWQJFReal Estate−4.59%6.64%5.59%
Tkpvvdth Cbksxj RkktqyBBFZYEquity Energy−1.26%12.33%−0.94%
Kfqmqflm Sykgrg Zkhm SgygKXBBSZHealth14.31%8.40%10.05%
GxwxwtNwbx Xkdpydlxgk lvn Hyd 589 BrdR/WYQTPXFPTechnology
kCsvlyb Xhdrbsylf Nkqk Tnxngr Hmp CfVHMDGlobal Real Estate−7.94%1.01%0.37%

List Criteria

Sector Equity Funds

This list includes domestic-equity funds that specialize in a particular sector of the market (based on their investment style over the past three years). Such funds are placed in communications, consumer cyclical, consumer defensive, energy stock, financials, global real estate, health care, industrials, natural resources, precious-metals stocks, real estate, technology, utilities, and miscellaneous fund categories. (Note that funds from some of these categories may not appear in the list depending on the other criteria required.)

Medalist Funds (Gold, Silver, or Bronze)

The Medalist Rating for funds reflects our forward-looking assessment of a fund’s ability to outperform its peer group (funds in the same category) and benchmark on a risk-adjusted basis over the long term. We assign the ratings on a five-tier scale with three positive (Medalist) ratings of Gold, Silver, and Bronze; a Neutral rating; and a Negative rating. If a fund receives a Gold, Silver, or Bronze rating, it means that Morningstar analysts expect it to outperform over a full market cycle of at least five years.

Open to New Investment

All the funds on this list are open for new investment. Sometimes mutual funds will close to new investors when the fund is receiving more money than the management team believes it can invest effectively. Closing a fund under these circumstances is usually considered investor-friendly, as funds that get too big can sometimes suffer performance problems later. Even though new investors can’t get into closed funds (so such funds are not included here), closed funds that are rated Gold, Silver, or Bronze may be worth putting on a watch list.

Share Class Exclusions Applied

Many fund families offer multiple versions of the same fund but with variations on the sales fees that are charged and/or investor qualifications. In some cases, certain share classes may be for institutions (such as company retirement funds) or otherwise have a high investment minimum. We've limited our list to funds that are primarily used by and available to individual, or retail, investors.