Value for Money Insights - US Equity Large Cap Funds

For Professional Investors only 

Over the last few weeks, US equities have been in the spotlight due to President Trump’s Trade Tariffs. The status quo on global trade has been disrupted and has created uncertainty for investors worldwide.    

Nevertheless, investors with a long-term view will see the merit of US equites as an important part of portfolios despite the shorter-term challenges. With that in mind, we look at which funds provided Value for Money over the past three years.   

Key Themes   

• Over three years, broad-market index ETFs and ESG-tilted index funds delivered the highest Value for Money. These funds combined below-average fees with strong market performance, outpacing pricier active funds.

• Although ranking outside the top ten, there was one bright spot for active management. GQG Partners US Equity fund justified its active management cost premium and was an exceptional result among passive funds that delivered decent value for money outcomes for investors.     

• Funds with ESG classification feature strongly in Value for Money analysis. About half the peer group is classified as Article 8 (41%) or Article 9 (2%) under SFDR, with the remainder non-ESG Article 6 funds (47%) or unclassified. Many top-ranking funds were Article 6 or Article 8 index strategies, indicating sustainable funds were able to deliver value when costs are competitive.