- Only 22 out of 104 BlackRock funds consistently outperformed their sector peers over the past 1, 3, and 5 years.
- 68.75% of Fidelity funds analysed have a history of underperformance, with 32 funds receiving a low 1 or 2-star rating.
- Out of 35 Vanguard funds, only 10 received a top 4 or 5-star rating, while 13 lagged behind their sector averages.
Fidelity, Vanguard, and BlackRock are three of the largest investment firms globally, each managing trillions in assets and offering a broad range of funds widely used by UK investors. Their size and brand recognition are well established, but the key consideration for investors is whether this scale consistently translates into strong fund performance.
This report provides a comparative analysis of fund performance across these three providers. We highlight three of the strongest-performing funds from each group and evaluate their returns over the past 1, 3, and 5 years.
We also highlight the importance of using evidence-based fund selection. While brand familiarity can influence investor decisions, no fund house consistently leads in all market conditions. Performance should be assessed on merit, not reputation.
More importantly, we explore why investors should look beyond brand reputation. No single fund manager consistently outperforms across all markets or timeframes. That’s why investment decisions should be guided by objective, performance-based evidence, not name recognition or familiarity.
BlackRock, Fidelity, and Vanguard Fund Performance Comparison
This analysis reviewed a total of 203 sector-classified funds across three of the UK’s most prominent fund management groups: BlackRock, Fidelity, and Vanguard.
Each fund was assessed based on its cumulative performance and sector-relative ranking over the past 1, 3, and 5 years. A Yodelar rating, ranging from 1 to 5 stars, was assigned to each fund to indicate how it has performed relative to other funds within the same sector.
Funds that consistently delivered returns above the sector average were rated 4 or 5 stars. Those with performance close to the sector median received a 3-star rating, while those falling below the sector average were rated 1 or 2 stars.
BlackRock, which offers the largest fund range in this review (104 funds), has a significant proportion—approximately 65%—rated at 1 or 2 stars, indicating a concentration of funds underperforming their sector averages. Fidelity displayed a similar profile, with 69% of its 64 funds receiving low ratings.
Vanguard, with a smaller fund universe of 35, recorded the highest proportion of funds rated 4 or 5 stars, and the fewest in the lower tiers.
Best Performing BlackRock Funds
BlackRock manages the largest fund range of the three providers analysed, offering a broad mix of active and passive strategies through its mutual funds and iShares ETF range. While the overall performance across its fund range is mixed, a select number have consistently outperformed their sector peers. These top-performing funds demonstrate strong risk-adjusted returns and competitive long-term performance, particularly in global equity and strategic bond sectors.
The following examples represent some of the best performing BlackRock funds based on 1, 3, and 5-year performance relative to their respective sectors.
BlackRock Managed Volatility IV Fund
The BlackRock Managed Volatility IV fund distinguishes itself as a top-performing BlackRock fund, consistently surpassing its sector over various timeframes. In the past year, the fund achieved a return of 9.86%, significantly exceeding the sector average of 5.85%. Its three-year performance was even more impressive, with a 31.42% gain, ranking it 2nd among 183 funds in its sector. Over the past five years, the fund delivered a total return of 73.11%, markedly ahead of the sector’s 46.26% average.
This actively managed is designed to deliver steady returns while keeping volatility (i.e. the degree of fluctuation of the returns) at or around 15%. To meet its objective the fund invests in a diversified mix of global equities, equity-related securities, money-market instruments, cash, and other liquid assets. During periods of market uncertainty, it has the flexibility to hold up to 80% in cash to help limit downside risk and maintain portfolio stability.
A key reason for the fund’s strong results is its use of financial instruments called derivatives, such as equity futures and currency contracts. These are used to help control risk, reduce trading costs, and support returns. They also allow the fund to increase its market exposure without needing to hold more assets directly.
This effective combination of risk control, tactical allocation, and a low ongoing charge has been central to the fund’s success.
BlackRock ACS 30:70 Global Equity Tracker Fund
The BlackRock ACS 30:70 Global Equity Tracker Fund is a low-cost, passively managed global equity fund that currently oversees £1.03 billion in assets. It is designed to track a composite benchmark comprising 30% UK equities and 70% overseas equities, including a 10% allocation to emerging markets.
With an annual ongoing charge of just 0.03%, the fund ranks among the lowest priced options in the highly competitive IA Global sector. It also implements a 95% currency hedge on non-UK developed market holdings to minimise the impact of exchange rate fluctuations on returns for UK-based investors.
The fund has delivered strong performance across all measured periods. Over the past year, it returned 12.39%, well ahead of the IA Global sector average of 3.88%. Its three-year return stands at 30.73%, and over five years, the fund has delivered 122.73%, comfortably outperforming the sector averages of 19.09% and 88.45%, respectively.
This level of performance reflects the fund’s global diversification, effective benchmark tracking, and low cost structure. Exposure to major global companies has been a key contributor to returns. Its largest holdings include Apple, Microsoft, NVIDIA, Shell, and AstraZeneca - names that have performed strongly in recent years and played a significant role in driving the fund’s strong returns.
BlackRock Gold & General Fund
The BlackRock Gold & General D Acc Fund is a well-established option within the IA Specialist sector, managing £1.1 billion in assets. The fund targets long-term capital growth by investing at least 70% of its portfolio in global companies involved in gold and precious metals mining.
Performance over recent years has been notably strong. Over the past 12 months, the fund returned 54.03%, significantly ahead of the sector average of 7.63%. Its three-year return of 30.96% also outpaced the 16.83% sector benchmark. Over five years, the fund delivered a return of 96.31%, well above the sector average of 58.74%. These results have earned it a 4-star rating within its category.
A key driver of the fund’s performance has been its concentrated exposure to Canadian mining stocks, which make up over 70% of its regional allocation. The portfolio has benefited from rising gold prices, supported by inflation concerns and broader geopolitical uncertainty—factors that have historically driven demand for gold as a perceived safe-haven asset.
The fund carries an ongoing charge of 1.15%. While this is higher than passive alternatives, the fund’s strong returns have more than offset costs over recent periods, making it one of the standout performers in its sector.
Best Performing Vanguard Funds
Founded in 1975, Vanguard has grown to become the world’s second-largest asset manager, with over £10.4 trillion in assets under management. They have established a strong presence in the UK market, offering a broad selection of low-cost multi-asset, passive, and actively managed funds - many of which are among the most widely held by UK investors.
Our review of 35 Vanguard funds identified several strong performers. In this section, we highlight three of the best-performing funds based on their risk-adjusted returns and relative sector rankings over the past 1, 3, and 5 years.
Vanguard LifeStrategy 80% Equity A Shares Fund
The Vanguard LifeStrategy 80% Equity A Shares Fund is one of the most popular offerings within the IA Mixed Investment 40–85% Shares sector, managing a substantial £12.3 billion in assets. It follows a strategic allocation of approximately 80% equities and 20% fixed income, with exposure delivered through a range of passive, index-tracking funds.
As the 2nd most equity-focused fund in the LifeStrategy range, it has delivered consistently strong performance. Over the past year, it returned 8.09%, ahead of the sector average of 6.25%. Over three years, it achieved a return of 19.70%, and over five years, 74.69%—both outperforming sector averages of 13.28% and 57.40% respectively. It remains the only fund in the LifeStrategy suite to maintain top-quartile performance across all three periods.
The fund’s results reflect its disciplined global asset allocation, broad regional diversification, and low-cost structure. Its equity holdings span major markets, with significant exposure to the US, UK, Europe, and emerging economies, and are well spread across sectors such as technology, financials, and healthcare.
Vanguard FTSE UK Equity Income Index Fund
The Vanguard FTSE UK Equity Income Index Acc fund is a passive investment vehicle aims to track the performance of the FTSE UK Equity Income Index. This index comprises UK companies anticipated to pay above-average dividends, making the fund particularly appealing to income-focused investors seeking exposure to the UK market.
Managing £1.25 billion in assets, the fund has delivered consistently competitive results within the IA UK Equity Income sector. Over the past 12 months, it returned 21.07%, ahead of the sector average of 12.55%. Its three- and five-year returns of 30.29% and 109.83% also exceeded the corresponding sector averages of 21.08% and 97%, underlining its consistent performance over time.
Its outperformance stems from a carefully constructed allocation across dividend-rich sectors, such as financials, consumer staples, energy, and utilities. Core holdings include established income generators like HSBC, Barclays, BP, and British American Tobacco. The fund’s low ongoing charge of 0.14% enhances net returns and strengthens its appeal among cost-conscious investors. Combined, these elements have helped the fund build a solid reputation as one of the most reliable UK income strategies within Vanguard’s offering.
Vanguard FTSE 100 Index Unit Trust Fund
The Vanguard FTSE 100 Index Unit Trust Acc GBP fund seeks to track the performance of the FTSE 100 Index, which consists of the 100 largest companies listed on the London Stock Exchange. It offers investors direct exposure to the most prominent UK-listed firms through a fully replicated, passively managed strategy.
This £1.32 billion fund has consistently outperformed its peers and ranks among the best performers within the UK All Companies sector. Over the past year, it returned growth of 16.53%, which was comfortably better than the sector average of 9.78%. Its three-year return of 31.13% is more than double the sector’s average of 15.56%, while the five-year return of 101.14% places the fund comfortably in the top 50% of its peer group.
This superior performance has been driven by a post-pandemic recovery in UK large-cap equities, especially in cyclical sectors such as financials, energy, and industrials. The fund’s growth has also benefited from holding companies that gained from rising interest rates and inflation, particularly banks and firms linked to commodities.
In addition, the high dividend yields offered by many FTSE 100 companies have helped boost overall returns in an environment where income remains in high demand. The fund is available for daily dealing and carries a low ongoing charge of just 0.06%, making it a low cost option for investors seeking long-term UK equity exposure.
Top Performing Fidelity Funds
Fidelity is one of the longest-standing global investment firms, managing over £600 billion in assets across a wide range of regions and asset classes. In the UK, it offers a comprehensive range of funds covering equities, bonds, multi-asset portfolios, and specialised strategies, with options across both active and passive management styles.
Its investment approach is grounded in fundamental research and active portfolio management, with a focus on bottom-up stock selection and disciplined risk oversight. The aim is to identify long-term opportunities and deliver performance that exceeds benchmark and sector averages over time.
Out of 64 Fidelity funds analysed, a number have shown consistently strong results relative to their sector peers. In this section, we highlight three of the highest-rated performers, based on their risk-adjusted returns and sector positioning over the past 1, 3, and 5 years.
Below, we list the top three Fidelity funds based on our analysis of 64 funds over the past 1, 3, and 5 years.
Fidelity Special Situations Fund
The Fidelity Special Situations Fund is a long-established, UK-focused equity fund. With approximately £3.22 billion under management.
The fund has an investment style that targets undervalued businesses that it believes have long-term recovery or growth potential. This approach allows the portfolio to access a broad opportunity set, from large, well-established firms to smaller, overlooked companies across various sectors.
Over the past year, it generated returns of 18.41%, compared to the sector average of 9.78%. Its three year growth stood at 34.41%, more than double the sector average of 15.56%. Over five years, the fund delivered impressive growth of 146.23%, outperforming the sector average of 86.51%.
The substantial growth achieved by the fund, particularly in comparison to its peers, highlights its ability to identify and capitalise on opportunities within the UK equity market.
The portfolio is typically diversified across several key sectors, including financials, industrials, and consumer discretionary. This broad exposure provides balance and reduces reliance on any single part of the market. Top holdings such as Standard Chartered PLC, Imperial Brands PLC, and DCC PLC have also been instrumental in driving recent performance.
Fidelity Sustainable Global Equity Income Fund
The Fidelity Sustainable Global Equity Income W Acc Fund is a globally diversified equity income fund, managing approximately £164.38 million in assets. It is designed to deliver a blend of income and long-term capital growth over a five-year horizon, with a strong emphasis on environmental, social, and governance (ESG) standards.
The fund invests at least 70% of its assets in shares of companies across global markets, including emerging economies. Its investment approach focuses on high-quality, dividend-paying companies that demonstrate strong ESG credentials, aiming to provide above-average income alongside capital appreciation.
Over the past year, the fund returned 13.40%, outperforming the IA Global Equity Income sector average of 9.17%. Over three years, it delivered 37.85%, ahead of the sector’s 27.01%. Its recent five-year return was 140.48%, significantly above the sector average of 94.25%. These results make it one of the consistently best-performing funds in the IA Global Equity income sector.
Fidelity Index US Fund
The Fidelity Index US P is a low-cost, passively managed fund and one of the largest in its category, with approximately £6.28 billion in assets.
The fund aims to replicate the performance of the S&P 500 (NUK) Index before fees and expenses, with a focus on achieving long-term capital growth over five years or more. It adopts a passive, index-tracking strategy and seeks to mirror the benchmark’s composition through full physical replication.
Consistently ranked among the top performers in the IA North America sector, the fund has earned a 5-star rating for its performance. Over the past year, it returned 8.25%, outperforming the sector average of 4.94%. Over three years, it delivered a cumulative return of 35.69%, far exceeding the sector average of 24.84%, while its five-year return of 127.19% was also ahead of the sector average of 107.47%. These results underscore its ability to deliver steady long-term growth.
The fund’s solid performance can be largely attributed to its diverse investment mix, with significant allocation to high-growth sectors such as technology, financial services, and healthcare. Its top holdings include some of the most influential and well-capitalised companies in the world, such as Apple Inc., NVIDIA Corp., and Microsoft Corp. all of which have contributed meaningfully to the fund’s consistent returns.
With a low ongoing charge of just 0.06% and its robust performance history, this fund remains an attractive choice for investors seeking a cost-effective and reliable way to gain exposure to U.S. large-cap equities.
The Risk of Relying Too Heavily on a Single Fund Manager
One of the most common and understated risks in portfolio construction is an overreliance on a single fund management firm—often driven by brand perception rather than performance evidence. Many investors, influenced by familiarity or reputation, find themselves heavily concentrated in funds from just one provider. While it may offer a sense of simplicity or trust, this approach can significantly limit the potential of a portfolio and increase its vulnerability.
No fund management firm consistently outperforms across all sectors, asset classes, and market cycles. Even the most reputable brands, including the industry’s largest names, have areas of both strength and weakness. Relying solely on one provider means placing the entire performance of a portfolio on the success of a single investment philosophy, team, and process—none of which are guaranteed to work uniformly across global markets.
A more robust and strategic approach is to diversify across fund houses, selecting individual funds based on merit—such as consistent performance, sector-specific expertise, and alignment with the investor’s objectives. This whole-of-market model allows investors to build portfolios that draw on the unique strengths of different fund managers, optimising outcomes by leveraging specialist knowledge in particular regions or asset classes.
In addition to improving performance potential, this approach enhances investor protection. The Financial Services Compensation Scheme (FSCS) protects up to £85,000 per fund manager in the event of firm failure. Spreading investments across multiple fund management firms not only strengthens the quality of the portfolio but also maximises this protection. In effect, diversification by fund house can act as both a performance strategy and a risk management tool.
Ultimately, no single fund manager has a monopoly on success. Building a portfolio that includes high-quality funds from a variety of providers ensures broader exposure, better balance, and a stronger foundation for long-term growth.
The Value of Advisers Who Prioritise Fund Quality
A key strength of quality financial advice lies in the adviser’s ability to identify and select high-performing funds based on objective analysis rather than brand recognition. Building a resilient, efficient portfolio requires more than familiarity with household names—it demands a detailed understanding of fund performance, consistency, and sector-specific strengths.
Skilled advisers conduct ongoing assessments of fund managers across the entire market, using clear performance metrics and independent analysis to guide selection. This approach avoids the common pitfall of defaulting to well-known brands, and instead focuses on identifying funds that have a proven ability to outperform their peers over multiple timeframes.
Transparency is also an essential part of this process. Advisers who openly share the rationale behind their fund choices—explaining how each holding contributes to the overall portfolio strategy—help investors stay informed and aligned with their long-term goals. This level of clarity is especially important when constructing portfolios that blend multiple fund houses, as it ensures that each inclusion is based on merit rather than marketing or name recognition.
In a market where popular funds do not always equate to strong performance, the role of an adviser becomes even more valuable. Advisers who prioritise robust fund evaluation over reputation or sentiment can help investors avoid underperforming assets and build portfolios that are both diverse and strategically positioned for long-term success.
Summary
This analysis reinforces a critical truth for investors: long-term success is driven by informed decisions, not assumptions based on brand reputation. No single fund manager consistently delivers across all markets, and relying on familiarity alone risks limiting both performance and protection.
Our review of 203 funds managed by BlackRock, Fidelity, and Vanguard highlighted a significant proportion that have underperformed their sector peers. While each of these providers offers a selection of high-quality funds that can play a valuable role within a well-diversified portfolio, it remains essential to consider other fund managers and options across the wider market.
By adopting an evidence-based, whole-of-market approach, investors can access a broader range of top-performing funds, diversify more effectively, and strengthen the foundations of their portfolios. With the support of objective research and professional guidance, it becomes possible to move beyond brand loyalty and build investment strategies that are truly optimised for long-term results.
