(Updated with correction)
Growth strategies already benefiting from technological innovation chalked up triple-digit returns as the COVID-19 pandemic accelerated change in the year ended Dec. 31, according to the latest data from Morningstar Inc.'s separate account/collective investment trust database.
Among the top 10 strategies, nine were growth strategies. Of those nine, four were large-cap strategies, three were small-cap and two were midcap, according to the data. One strategy fell within Morningstar's technology category, a sector that contributed to the success of many of the other strategies.
For the year ended Sept. 30, seven of the top 10 strategies were growth strategies.
Tony Thomas, senior manager research analyst for equity strategies at Morningstar Inc., Chicago, said in a telephone interview that the sectors that have dominated consistently even before 2020 have continued to do so.
"I think broadly speaking, the tech and tech-oriented, consumer cyclical, those are still generally the market leaders," Mr. Thomas said.
Every one of the top 10 domestic equity strategies posted triple-digit returns in 2020.
"When you think about what happened in 2020 with the pandemic, and it's a year that so many people want to forget for many reasons; who would have thought let alone in March, by midyear, 10 managers could post triple-digit returns in a single year?" Mr. Thomas said.
He also noted they were all fairly well-diversified portfolios.
"They've got more than five or 10 holdings, so they're doing well in a lot of different ways. They have a lot of things firing for them," Mr. Thomas said.
For the year ended Dec. 31, the median return for growth strategies was 32.63% in Morningstar's universe, while value strategies only returned a median 4.8%. The Russell 3000 Growth index returned 38.3% for the year ended Dec. 31, while the Russell 3000 Value index returned 2.9%.
The overall median return for domestic equities within the Morningstar separate account universe was 14.07% for the year, compared to the Russell 3000 index return of 20.9%.