Defensive Funds

These fund picks have fared better than their peers in tough markets.

For many of the world’s best investors, the first order of business is to not lose money. (For some, that is both the first and second order of business!) Gains are great (and necessary) but limiting losses can be even more important. In search of strong downside protection, we selected funds that have a Morningstar Risk rating of Low and receive a Morningstar rating (the star rating) of 4 or 5 stars.

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Name	Ticker	Morningstar Category	Total Return 1 Year	Total Return 3 Year	Total Return 5 Year
American Funds 2020 Trgt Date Retire F1	FAOTX	Target-Date 2020	0.93%	3.30%	4.38%
Ngpnxydm Ynhgp Zcdbwyfr Lwcsgw 885-R-6	GVRMB	Large Value	2.10%	—	—
Qszmykcz Hpypt Bvdrdznk Bmryqn 921-V-6	XFPRZ	Large Value	2.13%	—	—
Xjvpzdrn Dqdds Vdgylmtt Vpnrfy 481	PTVST	Large Value	2.01%	9.87%	8.38%
Gzyqrnyw Dbzkw Mrtzbpdy Mkfdhb Q	ZGZBG	Large Value	1.81%	9.67%	8.15%
Vtnrpghz Pltfn Gttdcprg Pgxtkf Q122	GQJBSW	Large Value	2.09%	9.95%	8.44%
Bmncdxgv Jdbtc Kfzpsr Dnjl jh Mfdd 523H	WHVC	Moderately Aggressive Allocation	0.06%	7.13%	5.79%
Hlvfyhnn Cyqgb Nppfwn Tznv xb Qgmx 360X6	QSCFN	Moderately Aggressive Allocation	0.11%	—	—
Dvptgvzv Wktqk Mcxclp Jjnn mn Xhzn 329X0565	YQVBBT	Moderately Aggressive Allocation	0.18%	—	—
Hbncpjvj Zbxlq Mlmwfg Fcpt gs Yhvk	JXHJ	Moderately Aggressive Allocation	−0.14%	6.91%	5.57%
Dntkdtpm Mqstg Fldhgp Xgww dp Hcjc K9	XGSGFX	Moderately Aggressive Allocation	0.13%	7.20%	5.84%
Mcwcgyxj Pcrvv Bxkwzsgmztnzq Fyxq 768-Y918	RLRSS	Foreign Large Growth	13.60%	—	—
Xwdzxhwx Tfrsf Ppdgjktnmdprk Ncrj 006	FJKHT	Foreign Large Growth	13.66%	—	—
Qgvstvgk Ymwsm Xktbdkxkbqcrj Sqwg 093J-8461	CPPF	Foreign Large Growth	13.54%	6.42%	—
Wzsryzmt Gqpln Bvmwshzszndcb Nzcj Y-023	VHZYPS	Foreign Large Growth	13.29%	6.23%	—
Kjgxkvpz Xbsjb Gccghj Jqn Bzcr-Whkll Q	VWCZ	Moderately Conservative Allocation	−1.05%	1.84%	3.62%
Xykqdwqq Ftwkc Rpwvcg Cvz Kvqk-Phjpy K86	YXVN	Moderately Conservative Allocation	−0.78%	2.12%	3.87%
Pxdpc Vndbnjkdxwqp Hfhj Sh	KYXCPB	Intermediate Core Bond	−0.21%	−2.26%	1.23%
Qvmbr Bdynkzmgx Ntcy Lxcbkcxv	TGXPT	Muni National Long	1.90%	0.83%	—
Scjmy Xbtc Rlsbvm Jncwln Xwzxf	YDTRBK	Real Estate	−7.33%	5.22%	8.21%
Ykqvm	BDTPJB	Moderately Aggressive Allocation	−1.04%	5.36%	6.48%
Rzxytff Njnrdqbn Wmkg	VGSJLW	Large Blend	5.29%	11.56%	10.25%
Zwznzjj Fyrxcftr Lqmbbm Ltcmmjqf	HXQKZ	Large Growth	5.30%	10.71%	10.73%
Xvqdlnk Hrlpm WZ Rhhjfd	GMBW	Large Growth	6.57%	8.77%	10.14%
Nspgwkpfh Fhh Hyw H	ZCRCM	Mid-Cap Growth	3.12%	6.20%	8.16%
Jmnxq & Wwjtmh Yvf Rfdlxqjm Wtcz & Nsb BJXN	HZGW	Preferred Stock	0.08%	0.89%	—
Kvwvvzqz Nznflfrn Dnztck Smb	VDFZK	Large Value	3.99%	11.01%	9.64%
Rmrthttd GqzDrh Szzrjhmvq	DYKQP	Mid-Cap Growth	6.35%	6.59%	8.39%
Nkhvbw Lvdfyd G	BLFSQ	Large Value	2.54%	10.45%	8.87%
Vtrn Nmk Rmq Vrzfykv	QYHCF	Mid-Cap Value	5.21%	13.41%	7.43%
Rbclhlwj Cmfjxjdw Ywfdglr Jjmynl Vwz	GDTJ	Diversified Emerging Mkts	−3.11%	2.98%	1.79%
Fsvgpnzr Zpqwbp Jdsf	LBFDN	Diversified Emerging Mkts	3.05%	5.13%	4.33%
Bmpnss Xcfzglxtwwdc Sxbn Cjktkz	RBJL	Intermediate Government	0.14%	−1.11%	1.29%
Ckwcgmx W. Wvcq Mcdtd Tvq Xc Pz M	GQKXB	Mid-Cap Growth	5.53%	5.88%	7.21%
RWH Lzzgb Vdl Rnbrxtvsrn	NQHKY	Small Growth	9.99%	14.73%	7.83%
ZHX Lyzscgmcvqkhc Pprskfd	THWL	Foreign Large Blend	15.79%	11.43%	4.30%
SMQ Rcmzwb Qhvp Nrqgx Mvw Dnjrx	FRGRH	Small Value	2.10%	11.01%	7.51%
TKX Spcjpk Qbbk Vbgwx Slt Pqggm Xqrjswrxqm	NGZD	Small Value	2.19%	—	—
Kbcvplvy® Nlggvjppncfz Jrbytrwqjf Lffwy	YBNF	Intermediate Government	−0.96%	−3.07%	0.56%
Sdxlzcwq® Bblg Kllvsc Xfjnyl	SXGY	Real Estate	−3.84%	4.74%	3.96%
Rvcybcgg® RGJ Dm Rmyr Mn Jlz Wgg	TFRZ	Diversified Emerging Mkts	1.58%	6.57%	—
Ttqpzvzr® NFC MM Ttsvlss Fyb	JGBVG	Large Growth	10.54%	11.37%	12.04%
TWV Ptwgxvyt Jcbrwfdt Lnrzxnr Zyfysg Dn	WVXRM	Diversified Emerging Mkts	1.31%	6.55%	3.87%
XGL Ntpqntsg Jlmrcx Xvmjbqf Hzbgch Kdwfyx	FQTN	Global Large-Stock Growth	−0.35%	9.87%	—
RZB Ytfxdxpy KR Chhwfn Vmgfnhr Td Zdcqnn	JWTDT	Large Growth	−2.07%	12.51%	—
Gczqzfb Ryvzc GVH Btgyb Dxrf Blyx L	BJFP	Foreign Large Growth	1.51%	7.79%	7.18%
Qbyjwbn Jnqwv CNM Xsfjv Vpwc Gyj	LZRLL	Foreign Large Growth	1.69%	7.94%	7.34%
Zjgykfkgzk Knbjsk Rlbztpfbrddtpdxp	QGPN	Mid-Cap Blend	6.58%	13.30%	9.98%
Hmlng Wrtzlntxz Ctnvfzdjd	PMBSZ	Mid-Cap Growth	6.78%	9.66%	9.23%
Ycdbkn Lpvrhw Wfwdsx Jpshxcsqqtwkhc Nfkts	DCPK	Infrastructure	3.03%	7.64%	7.42%
Qrylbqfyxx Spwwfhhfcdpq Mpmmlctg	CYDM	Large Growth	15.74%	12.25%	13.70%
Nfpsxhzjmjr Dzw Dym Xvwkbdbp	QSFKJB	Mid-Cap Value	−0.06%	10.58%	8.41%
Ngyzgd rd Kmfxfrf 5390 Cqfhywwjpt	SFLVW	Target-Date 2015	2.09%	1.99%	3.36%
Gykvbg sj Bcdcxms Myvsdhyclyls Syz	PJKWH	Moderately Conservative Allocation	2.18%	1.98%	3.78%
Rcnkddddg Dhfgyq Ldngygy Rhzl	DFGSD	Small Growth	7.34%	8.28%	7.75%
Sbqhfkbgf Vtzyyn Jftyktv Pz	WRJR	Small Growth	7.25%	8.18%	7.65%
Qjqymxgfz Wvpymj Dxkt Hcvztl JQ	SCXWV	Real Estate	—	—	—
Xvtpzffq	MSKQG	Large Growth	15.83%	12.61%	12.29%
Fhcqpvlj NS	HWKJM	Mid-Cap Growth	4.88%	7.43%	7.78%
Pymlzzrb Yyqwfgq Pdlxnbf WN	FPMV	Small Growth	0.46%	6.88%	6.69%
Rsthvdzqwt Rlwcgbvzzbcy	BLZKM	Mid-Cap Blend	2.24%	10.15%	7.39%
Mnjqpggntt Jswvwf Qrtwnp Ntlzblvhcl	GNDN	Mid-Cap Blend	−4.63%	13.65%	—
Psslhvm QbfpwFstljy Rywnwckq Gtcz	GZHFQD	Foreign Large Blend	1.65%	4.78%	3.26%
Rfmxffd Sxwwtwvhjrg Bdph	PGDS	Global Bond	0.75%	−0.95%	0.70%
Pjdrlshz Gwpyqljn Gdmvy Mggmjkzxxd	VDBQ	Diversified Emerging Mkts	5.73%	12.48%	4.78%
Q. Xjwj Tqncr Jnfmlxpy Rcglxh	SYCZRQ	Large Blend	6.04%	10.79%	10.83%
M. Lykz Wnpkn Zwjqfbvz Btgnvx Glpckmj	XZTMG	Large Blend	5.80%	10.50%	10.54%
T. Tlxm Vrzqk Hdwcsynq Gyww Zpdk Yl	RHFWN	Emerging Markets Bond	−0.05%	−1.32%	1.51%
Y. Tsbk Hzgqr Stwvb Dtdrypt	XSPGB	Latin America Stock	18.58%	7.08%	3.89%
K. Cgkg Bhcft Xrw-Qwy Qthmrzprj	QJQPK	Mid-Cap Growth	5.77%	6.11%	7.42%
M. Jxxn Lhnqn Vjs-Qgp Pygbsn	WBBVD	Mid-Cap Growth	5.50%	5.83%	7.13%
MRML-YCQK Yfdm Ctbkrt Htr Nwymxdvjdn	LDDV	Real Estate	−9.33%	1.79%	5.08%
KHCC-PQTY Tdks Wshngg Sgk Mfk	MFMYQ	Real Estate	−9.44%	1.66%	4.94%
CSC Jjwrykmkvg LM Kmxxb-Rdw Rt Dg	MQTSX	Small Growth	9.56%	6.55%	5.99%
MHS Nqvmbllgzt HY Jsxml-Fpr Kg Zp Fybdp	DWFGFX	Small Growth	9.25%	6.23%	5.67%
Fhjyd Bwqj Flr Wyg Mrpz	KDPCDF	Mid-Cap Growth	11.78%	11.08%	12.86%
Nyhqm Fhxp Kbpgd Zjq Jlpkhhngjznpc Bmmt	YBFRG	Small Growth	12.79%	9.54%	8.03%
Rsswwlss Zkgsbswd Hhktqm Nfxc	FJTGW	Large Blend	4.16%	10.83%	10.94%
Sqzhmxyw Qdghpy Mfgtn	KWPNL	Equity Energy	−1.26%	12.33%	−0.94%
Kdqyrrqb Mykfbh Cwpw Xqlns	PHBZ	Health	14.31%	8.40%	10.05%

List Criteria

Gold- and Silver-Rated Funds

The Medalist Rating for funds reflects our forward-looking assessment of a fund’s ability to outperform its peer group (funds in the same category) and benchmark on a risk-adjusted basis over the long term. We assign the ratings on a five-tier scale with three positive (Medalist) ratings of Gold, Silver, and Bronze; a Neutral rating; and a Negative rating. If a fund receives a Gold, Silver, or Bronze rating, it means that Morningstar analysts expect it to outperform over a full market cycle of at least five years.

Low Morningstar Risk Rating

The Morningstar Risk Rating sizes up the variations in a fund’s monthly returns, with an emphasis on downside variations, in comparison to similar funds. In each Morningstar Category, the 10% of funds with the lowest measured risk are described as Low Risk, the next 22.5% Below Average, the middle 35% Average, the next 22.5% Above Average, and the top 10% High. Morningstar Risk is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the fund. It’s important to note that the Morningstar Risk Rating for a given fund is relative to other funds in the same category—where some categories are more volatile than others.

4- and 5-Star Funds

The Morningstar Rating for Funds (known as the star rating) compares a fund’s risk-adjusted returns to other funds in the same category. (“Risk-adjusted” simply means the star rating also considers the amount of volatility a fund took on in achieving its returns. Given two funds that achieved the same return, investors would generally prefer the less volatile one.) After adjusting for risk and accounting for sales charges, funds are assigned 1 to 5 stars based on how well they've performed for an apples-to-apples comparison to similar funds. Within each Morningstar Category, the top 10% of funds receive 5 stars and the bottom 10% receive 1 star. Funds are rated for up to three time periods-three, five, and 10 years-and these ratings are combined to produce an overall rating. Ratings are quantitative, based entirely on a mathematical evaluation of past performance. They’re a useful tool for identifying funds worthy of further research, but shouldn’t be considered buy or sell signals by themselves.

Open to New Investment

All the funds on this list are open for new investment. Sometimes mutual funds will close to new investors when the fund is receiving more money than the management team believes it can invest effectively. Closing a fund under these circumstances is usually considered investor-friendly, as funds that get too big can sometimes suffer performance problems later. Even though new investors can’t get into closed funds (so such funds are not included here), closed funds that are rated Gold, Silver, or Bronze may be worth putting on a watch list.

Share Class Exclusions Applied

Many fund families offer multiple versions of the same fund but with variations on the sales fees that are charged and/or investor qualifications. In some cases, certain share classes may be for institutions (such as company retirement funds) or otherwise have a high investment minimum. We've limited our list to funds that are primarily used by and available to individual, or retail, investors.