Top Stock Funds Ranked by Risk-Adjusted Returns
Third Quarter 2016

One way to produce an easily understood marriage of risk and return for funds is to adjust the fund return for risk. Funds with high returns that have above-benchmark standard deviations will have their returns proportionally lowered, and funds with lower returns and below-benchmark standard deviations will have their returns adjusted upward proportionally.

The risk-adjusted fund table lists the top domestic large-cap, mid-cap and small-cap funds by risk-adjusted arithmetic average returns. The benchmark used for return and risk is the S&P 500 index. The returns of all domestic stock funds were adjusted for risk and ranked.

The table reports the risk-adjusted average annual return—what the fund would have returned if it had the same risk as the market—and the average annual return for the three-year period that it did earn. Also reported is the fund’s standard deviation for comparison purposes and the market risk index. Benchmark statistics are reported at the bottom of the table.

Category Fund
Name
(Ticker)
Average
Annual
Risk-
Adjusted
Return*
(%)
Risk
Index
(1.00 = Market Risk)
Annual
Standard
Deviation*
(%)
Average
Annual
Return*
(%)
Stk-LC AmCent Equity Inc Inv (TWEIX) 15.0 0.72 7.8 10.8
Stk-LC Parnassus Endeavor Inv (PARWX) 13.7 1.05 11.4 14.4
Stk-LC T. Rowe Price US LC Core (TRULX) 13.1 0.93 10.1 12.2
Stk-MC AmCent Mid Cap Value Inv (ACMVX) 13.1 0.92 10.0 12.1
Stk-LC Fidelity Strat Div & Inc (FSDIX) 13.1 0.71 7.7 9.4
Stk-LC Glenmede Large Cap Gr (GTLLX) 12.7 1.07 11.6 13.6
Stk-LC Buffalo Large Cap (BUFEX) 12.6 0.99 10.8 12.5
Stk-LC Vanguard PRIMECAP Inv (VPMCX) 12.4 1.07 11.6 13.2
Stk-LC BMO Large-Cap Gr Y (MASTX) 12.3 1.06 11.5 13.1
Stk-LC Madison Investors Y (MINVX) 12.1 0.90 9.7 10.9
Stk-LC USAA NASDAQ-100 Idx (USNQX) 12.1 1.29 14.0 15.6
Stk-LC Jensen Quality Grth J (JENSX) 12.0 0.97 10.5 11.6
Stk-LC Metro West AlphaTrak 500 (MWATX) 12.0 1.01 11.0 12.1
Stk-MC Janus Enterprise T (JAENX) 11.9 0.98 10.6 11.6
Stk-LC Vanguard Hi Div Yld Idx Inv (VHDYX) 11.9 0.94 10.2 11.2
Stk-LC USAA Grth (USAAX) 11.9 1.11 12.0 13.2
Stk-LC T. Rowe Price Grth & Inc (PRGIX) 11.8 0.96 10.4 11.4
Stk-LC T. Rowe Price Div Grth (PRDGX) 11.8 0.93 10.1 11.0
Stk-LC Vanguard PRIMECAP Core Inv (VPCCX) 11.8 1.05 11.4 12.4
Stk-LC Vanguard Grth & Inc Inv (VQNPX) 11.7 0.98 10.6 11.4
Stk-MC Parnassus Mid-Cap (PARMX) 11.6 0.90 9.8 10.4
Stk-LC Rydex NQ100 Inv (RYOCX) 11.6 1.29 14.0 14.9
Stk-LC Copley (COPLX) 11.6 0.83 9.0 9.6
Stk-LC Parnassus Core Equity Inv (PRBLX) 11.4 0.92 10.0 10.6
Stk-LC Vanguard Div Grth Inv (VDIGX) 11.2 0.90 9.7 10.1
Benchmarks
  S&P 500 11.2 1.00 10.8 11.2
  S&P MidCap 400 8.9 1.08 11.7 9.6
  S&P SmallCap 600 7.8 1.23 13.4 9.6