List of Index-Beating Funds Remains a Short One

Yes, the average U.S. stock fund is trouncing the S&P 500 index so far this year, but the argument for index funds is still going strong.

Right or wrong, investors tend to flock to funds that have performed the best over the past 18 months or so. As tech- and biotech-heavy growth funds have sprinted ahead of S&P 500 index funds over the past year and a half, flows to index funds have tapered.

But look beyond the very recent past, and index funds still prove their mettle. Consider that of the 1,530 U.S. stock funds that have been around for at least five years, only four have beaten the S&P 500 in each of the last five calendar years. ...