By SANDRA BLOCK
USA Today
If you're battling insomnia, read your midyear mutual-fund statements just before bedtime. You'll probably fall asleep before you get to the second page.
For the first half of 2005, nearly every mutual-fund sector was down slightly, or flat. The average stock fund fell 0.3 percent through June 30, according to Lipper, the mutual-fund research firm.
And don't look for a turnaround soon, says Tom Roseen, an analyst for Lipper.
"Summer is not a great time to be in the market," he says.
First-half highlights and low points included:
Strong performance from funds that pay dividends. Real-estate and utilities funds typically deliver hefty dividends, making them appealing to investors weary of watching the stock market move sideways, says Jeff Tjornehoj, research analyst for Lipper.
The average utilities fund rose 10 percent in the first half, with most of the gains in the second quarter. Real-estate funds, which stumbled in the first quarter, surged 13.1 percent in the second, for a midyear gain of 5.5 percent.
Tepid returns from across the pond. Those who invested in international funds earned healthy returns last year, but globe-trotting wasn't a winning strategy in the first half of 2005. The average international large-company core fund fell 1.8 percent, according to Lipper.
Strong gains from emerging markets. The average emerging markets fund rose 5.2 percent in the first half, helped primarily by big gains in Latin America and India.
Signs of a growth revival. The average large-company growth fund was up 2.9 percent in the second quarter. That wasn't enough to overcome a wretched first quarter; the average large-company growth fund was down 1.7 percent for the half. But the strong second-quarter showing has led some analysts to predict that growth funds are finally emerging from their slump.
