10 Funds That Can Beat the Market for Another Decade
It's difficult to find funds that can consistently beat the market over time. The Standard & Poor's 500-stock index is barely scraping above breakeven in 2018, sure, but it averages 8% gains annually. The bar has been set even higher of late, with the index up 15% over the past year and 19.4% during calendar 2017.
If you want to do much better than that, you have a trying path ahead. Yes, many funds out there have beaten the index over shorter time frames. But it's difficult to find long-term outperformers, even more difficult to find ones that look primed to continue doing so in the years ahead, and almost impossible to do without taking on a little more risk.
"You have to weight your portfolio differently than that of the greater market (e.g., the hierarchy of the S&P 500, which overweights the largest companies)," says Tim Courtney, chief investment officer of Exencial Wealth Advisors. "The question then becomes how you should weight your portfolio to do that? The bottom line is, if you want to beat the market, you have to be willing to take on more risk by weighting more towards riskier companies."
There are other ways of taking on risk to beat the market, however, such as investing in certain closed-end funds. Some CEFs leverage debt,
