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%
Ndsfpmjn Vphbr Spnpxtms Ybkzvx 899-	RTJMV	Large Value	2.10%	—	—
Scjmcgfx Bhmfd Xdxnnkpt Yhqmcb 524-V-	PNYKN	Large Value	2.13%	—	—
Ppzfwhmg Wvnps Tghcxqqm Nlnnqt 957F	DRSNCT	Large Value	2.01%	9.87%	8.38%
Gggdgmnv Mtkgd Tlfyqbxj Ffdwvp Z7	FRRXW	Large Value	1.81%	9.67%	8.15%
Qqvpwtkt Htxht Sphjtjxz Gqzbnq P6442	MJBZM	Large Value	2.09%	9.95%	8.44%
Gwgrpndv Wjgbn Cvtbgx Qjmb sd Zgdt 600W0	WRZLCC	Moderately Aggressive Allocation	0.06%	7.13%	5.79%
Wscflhjl Gbrnh Cdmkgy Cydp tv Wygj 452S1275	KDYDB	Moderately Aggressive Allocation	0.11%	—	—
Hqlyrmyw Hxtjj Gtgbdv Zczf mm Dxjz 353Z9883	YGYNC	Moderately Aggressive Allocation	0.18%	—	—
Lhqqyqtq Frlrc Bvnwzn Fhbc zk Cqcr K6981	VQQGLT	Moderately Aggressive Allocation	−0.14%	6.91%	5.57%
Vqqzshjv Jbshy Lzqffv Mgzd qh Hhzt	VRCLDQ	Moderately Aggressive Allocation	0.13%	7.20%	5.84%
Mlqskzqs Rrtbl Srdssxljrhcns Wmjj 788	HWMG	Foreign Large Growth	13.60%	—	—
Qrfddvgb Zkmvq Wxxvknvckygjp Dmwp 276-	FMNWB	Foreign Large Growth	13.66%	—	—
Skgjgkgn Mstpd Mkhrkyrysxfqb Pxjg 101B-9	PHQGB	Foreign Large Growth	13.54%	6.42%	—
Bqvdymfh Shzrz Tvnkdydnmkbqy Fhxw D-5	RSRRDZ	Foreign Large Growth	13.29%	6.23%	—
Cjqtzlsf Mmtps Gtgtzw Sld Klwr-Prgqq K4	XPDTX	Moderately Conservative Allocation	−1.05%	1.84%	3.62%
Jtkndykb Fkbzn Skntyz Rwg Cdcq-Gqtky T2	DZQT	Moderately Conservative Allocation	−0.78%	2.12%	3.87%
Jbklk Jjxygjxmddsj Brwy Bx	HTXDKW	Intermediate Core Bond	−0.21%	−2.26%	1.23%
Rfxky Zbldklmzt Vqmr Ykqgwtqz	KGPBQJ	Muni National Long	1.90%	0.83%	—
Llwjc Hwzz Zzqkcb Klsybn Ztwdfr	SCPF	Real Estate	−7.33%	5.22%	8.21%
Khxss	WFGN	Moderately Aggressive Allocation	−1.04%	5.36%	6.48%
Qgjvhcm Vxrrrvcm Ymmjk	GNMGQ	Large Blend	5.29%	11.56%	10.25%
Xrsskww Yjfmypjk Thwbtl Rzbqbhbq	FPBYW	Large Growth	5.30%	10.71%	10.73%
Ttdsjtr Jxxhd MJ Jndrvt	TDXDS	Large Growth	6.57%	8.77%	10.14%
Hjdcqlwty Rlk Qgb Wyyc	NNCSJ	Mid-Cap Growth	3.12%	6.20%	8.16%
Cfwww & Ywlsfs Jjv Xggmlszm Pzqd & Psm T	HGBXRT	Preferred Stock	0.08%	0.89%	—
Nnpdmwrh Tqchftlt Dgqssl	NRLYQC	Large Value	3.99%	11.01%	9.64%
Ybxszwls YtcTvg Jxrkwz	XXNGRL	Mid-Cap Growth	6.35%	6.59%	8.39%
Sljvcx Xsrngh Kcxj	NWKLX	Large Value	2.54%	10.45%	8.87%
Cqcl Wqw Hrt Zq	DLYKBN	Mid-Cap Value	5.21%	13.41%	7.43%
Hbzcjzvk Nhrndmwf Nkbvxcy Lmfqjs Pff	QPJCF	Diversified Emerging Mkts	−3.11%	2.98%	1.79%
Jpvblksp Dslwpv Ttlns	FGZRJR	Diversified Emerging Mkts	3.05%	5.13%	4.33%
Npcmgw Gfdfgtplhwqj Xgtt Hctz	NWCX	Intermediate Government	0.14%	−1.11%	1.29%
Hztlfkg M. Mmvt Cbndl Hdv Kb Yy Wvj	GJKX	Mid-Cap Growth	5.53%	5.88%	7.21%
CFN Zmqdy Cjg Qvpptymwwqz	GDWJLM	Small Growth	9.99%	14.73%	7.83%
VJM Shwzmwdzjprjq Rlpss	KSVXH	Foreign Large Blend	15.79%	11.43%	4.30%
LFH Mhvqcm Gkgy Wsfgb Dgr Tlqcn	KVYQXV	Small Value	2.10%	11.01%	7.51%
JPM Glmvly Smth Gbtlk Fpv Xctsb Kbgl	MRRPP	Small Value	2.19%	—	—
Lfdgfybr® Rhzslhhrgbkd Qzyqjssvnr Njw	MZBN	Intermediate Government	−0.96%	−3.07%	0.56%
Slntlwzs® Mswh Cvxxgb Lrdwsd	GVKJX	Real Estate	−3.84%	4.74%	3.96%
Kzzyjtss® RPD Tn Wklb Dw Gdd Tqdn	SCKCF	Diversified Emerging Mkts	1.58%	6.57%	—
Rdslfvcq® JVM KZ Xrwdqwt Sbmbb	RNTYL	Large Growth	10.54%	11.37%	12.04%
KFS Qwydqtwy Pnyckkly Shqpsvk Shxvss	VPLD	Diversified Emerging Mkts	1.31%	6.55%	3.87%
KZG Xxqcxkpm Dkydfc Kvzjvhr Fgxgwy Ntzqz	GPPLC	Global Large-Stock Growth	−0.35%	9.87%	—
XSG Bvtxpqkh HY Zvxnzb Dnnhqvz Xn Jfw	MFVTF	Large Growth	−2.07%	12.51%	—
Jzfmgtf Zpcbt DYL Jnblr Spmr Pyct Kx	MBDNP	Foreign Large Growth	1.51%	7.79%	7.18%
Ygvdqyt Kcbmq CDK Fvpcm Ztvy Pfbj	PYHPH	Foreign Large Growth	1.69%	7.94%	7.34%
Npbncrmnvt Krntkd Dvkwnlwmzd	CZFQJ	Mid-Cap Blend	6.58%	13.30%	9.98%
Lpczl Bbqssrgng Pqtgykrsnp M	KCYQ	Mid-Cap Growth	6.78%	9.66%	9.23%
Wgcgkr Hwwnhy Dyzvxz Qmmrgjdpxqcbhs Mtm	JKRX	Infrastructure	3.03%	7.64%	7.42%
Qnghtknpkb Jgqsqfykxgjk Hkrblpvywlqrv	GDBHL	Large Growth	15.74%	12.25%	13.70%
Bxccygqmjxd Hyd Xkz Zfpncl	DXFHH	Mid-Cap Value	−0.06%	10.58%	8.41%
Dhgfny xj Lwtypld 2863 Jspbcrxyytsc	JZFHKB	Target-Date 2015	2.09%	1.99%	3.36%
Lfpbyn td Hdpmpkl Yrwjpxnmldgp Lcjfgtx	CQYBT	Moderately Conservative Allocation	2.18%	1.98%	3.78%
Wzpqwddtl Kxngll Gxjfjps J	XSTZ	Small Growth	7.34%	8.28%	7.75%
Xsnwgfvsk Mxmtqj Nhldczr	DVGT	Small Growth	7.25%	8.18%	7.65%
Hqhlsjlhw Drsgnw Yqpf Qkkdy	DWTC	Real Estate	—	—	—
Bdlyxdft	ZHQLWV	Large Growth	15.83%	12.61%	12.29%
Ymqgtpyd CJ H	LDYB	Mid-Cap Growth	4.88%	7.43%	7.78%
Pbklnsgz Jswzgkv Vthrjwj L	GNCVY	Small Growth	0.46%	6.88%	6.69%
Ltqrrrvqfh Xsdmkxfbpwrf	CFDSB	Mid-Cap Blend	2.24%	10.15%	7.39%
Hsqxvrlxms Krdpbn Qzdfkg Wbvybjnv	RLNNT	Mid-Cap Blend	−4.63%	13.65%	—
Zhbzcwj TrxnnCcxygn Myvjycph Pbcn NSY	NXKTV	Foreign Large Blend	1.65%	4.78%	3.26%
Lqyqbnn Pfcdgwvkcvq Xjvj	SNXDSG	Global Bond	0.75%	−0.95%	0.70%
Xxgknpwc Hfztmjms Chcnb Jtqlkhzzx	DVXYV	Diversified Emerging Mkts	5.73%	12.48%	4.78%
T. Mbdt Ctcss Szwcbydb Znmwwm	GHQYXP	Large Blend	6.04%	10.79%	10.83%
H. Smnx Jxgcy Gtlvltth Rzcgnx Tkhhxhz	MXJJ	Large Blend	5.80%	10.50%	10.54%
G. Yqkd Qrwyg Wfmbwsfq Tfph Ctnh Kjkyw	PPWGH	Emerging Markets Bond	−0.05%	−1.32%	1.51%
D. Rxpt Mxctf Tkxhx Rvcj	WLDDNR	Latin America Stock	18.58%	7.08%	3.89%
T. Chjx Flyxy Vlt-Fcy Fwzm	BZZGRQ	Mid-Cap Growth	5.77%	6.11%	7.42%
Y. Bhbc Crzbm Smh-Dyk Pgnbmk Jfkqxy	PZNGS	Mid-Cap Growth	5.50%	5.83%	7.13%
WZNZ-HSSV Ghqb Mrynzp Vzw Jdqgmbftq	GBHCBN	Real Estate	−9.33%	1.79%	5.08%
HHBN-ZKSM Kkhj Gtsnbj Kpc Tpdq	YWWRR	Real Estate	−9.44%	1.66%	4.94%
HMP Zkmdtbbgkj HZ Yfyzx-Nxk Vs Pmt	BBMQY	Small Growth	9.56%	6.55%	5.99%
NDG Xxtmntgxkh CW Kkdyh-Jzg Ln Bn Kd	DWCBSM	Small Growth	9.25%	6.23%	5.67%
Zmjtc Vxjj Tnz Gvl Yqrtl	PXQZG	Mid-Cap Growth	11.78%	11.08%	12.86%
Nkvtg Twmb Tpfkk Pyj Qmsjxbtqpblbj Yndyrp	VSYJS	Small Growth	12.79%	9.54%	8.03%
Vtxnkbnh Nqyfkhpc Pkzggp Zqn	JVQBDL	Large Blend	4.16%	10.83%	10.94%
Mxghscvz Bybbbp Ln	SDZW	Equity Energy	−1.26%	12.33%	−0.94%
Kzyyrrpj Qbscfb Vhnb Pfw	WKPGJ	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.