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Houge Examines Stock Funds

From 1965 through 2001, according to finance professors - Todd Houge of the University of Iowa and Timothy Loughran of Notre Dame - the average value stock fund performed no better than the average growth stock fund. That tends to be the pattern over decades, but there are exceptions: Over the last three years, value stocks have significantly outperformed growth stocks, and the average value fund has beaten the average growth fund, but not in the most recent quarter. The professors also found that both kinds of funds had much higher expense ratios than more diversified funds.


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