Morningstar, Inc. - July 7, 2026
Winners and Losers Among Stock Funds During Q2 2026
Plus: 10 Newly Overvalued Stocks this Week; Jeremy Grantham on...
 Morning DigestSbidag Demerjian Semiconductors, emerging markets, and small-caps led the rebound, while software and energy struggled to keep pace. 
ADVERTISEMENT  Editor's Picks  There’s a lot more to retirement planning than a high portfolio value. Christine Benz  The outspoken co-founder of GMO calls SpaceX ‘the craziest IPO in the history of man.’ Amy Arnott  Tech, financials, and industrials led gains, while energy stocks slumped from prior highs. Karen Gilchrist  The Magnificent Seven are no longer the stocks lifting the US market. Brian Paoli Investing Insights Novartis and Lloyds are among the stocks now rated as expensive. Bella Albrecht Deutsche Telekom and Crown Castle are now seen as significantly undervalued. Bella Albrecht Deckers and Hasbro are among the stocks that fell into undervalued territory. Bella Albrecht Plus, other Morningstar Medalist Rating highlights from June. River Meng Investors may be skeptical of the apparel giant, but we think there is still an opportunity. David Sekera, Susan Dziubinski, Jess Bebel ETFs US Vegan Climate ETF and Castellan Targeted Equity ETF were among the best-performing ETFs in Q2 2026. Bella Albrecht GQG US Equity ETF and Absolute Select Value ETF were among the worst-performing ETFs in Q2 2026. Bella Albrecht Vanguard Value Index Fund led stock ETF returns in June while Vanguard Growth Index Fund lagged. Bella Albrecht Avantis US Small Cap Value ETF led active ETF returns in June, while Avantis Emerging Markets Equity ETF lagged. Bella Albrecht Vanguard Total International Bond Index Fund led bond ETF returns in June while Vanguard Short-Term Inflation-Protected Securities Index Fund lagged. Bella Albrecht New Stock Analyst Reports Meta META shares traded up on July 1 after multiple news outlets reported that the company was considering renting excess artificial intelligence compute capacity to external customers. Although the ad business continues to fire on all cylinders, investors remain uncertain about Meta's returns on its capital expenditures. We think this stems from a lack of a clear monetization vehicle for the firm's infrastructure spending. We see Meta potentially selling compute to external vendors, which most likely will be compute-constrained AI labs like Anthropic and OpenAI, as addressing investor concerns. We view this as the beginning of a strategically sound pivot. New Fund Analyst Reports An experienced management team has smoothly implemented John Hancock Investment Grade Bond’s (TAUSX) simple yet effective value-driven approach. Thoughtful succession planning has been a strength for this team. Industry veterans and co-heads of subadvisor Manulife’s US core and core-plus fixed-income group, Howard Greene and Jeffrey Given, have capably managed this strategy together for more than two decades, but Greene is retiring in December 2027. That runway, however, should be long enough for a smooth transition of his responsibilities over to Given, who will then take over as the sole lead manager. The Tools You Need to Invest Like an Analyst Stay connected:
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