Fund performance

Double-digit gains produced by the mutual funds and ETFs with the most AUM were not enough to best the broader market.

Those that shorted the market suffered “steep losses,” while market-neutral products posted “modest gains.”

Data reported by the Investment Company Institute.

With an average gain of nearly 40%, the following mutual funds and ETFs are narrowly invested in the most attractive segments of the market.

The SEC’s recently passed ETF modernization rule, which expands choice in the market, “is probably the end of the mutual fund industry.”

Despite their high fees and double-digit returns, nearly all have even outperformed themselves so far this year.

The move comes amid years of mediocre returns posted by hedge funds, prompting investors to pull money and demand lower fees.

The $10.1 billion fund’s star manager, well known for his contrarian investments, held on to a short position against U.S. Treasurys even as bonds rallied.

The top 20 nearly doubled their gains over the last year, data show.

Broadly, hedge funds lost about 0.1% last month, paring gains for the year to about 6.2%, data show.

“Not every muni is trying to achieve the same thing,” an expert says.

“The combination of low rates, curbs on state and local tax deductions, and consistent economic expansion have been a nice tailwind,” an analyst says.

At more than twice the price of the average fund, many with the even biggest gains still underperformed the broader market over the last decade.

Wild price swings that have exceeded double-digit percentages in a single day have spurred the regulator to keep a close eye on volatility.

Deviation from the broader market has left more than half of these products with losses during a time the Dow and S&P 500 each posted double-digit gains.

Cash flow has subsided and market conditions have changed since the fund was closed to most new accounts in 2016.

At 84 basis points, the average expense ratio is over 40 basis points pricier than what investors paid on average last year.

Narrowly focused investment strategies are a recipe for “feast or famine,” an analyst says.

When pitted against the broader market, the top 20 outperformed both the Dow and S&P 500 by more than 5 percentage points.

The fund’s losses stem from bearish wagers on global interest rates, according to a person familiar with the matter.