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4 Zacks Rank #1 Large-Cap Value Funds for Better Returns
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Large cap funds are considered as a wise investment choice for risk-averse investors when compared with small cap and mid cap funds. These funds have exposure to large cap stocks, with a long-term performance history and more stability than what mid cap or small caps offer. Companies with market capitalization of more than $10 billion are generally considered large cap. However, due to their significant international exposure, large cap companies might be affected by a global downturn.
Meanwhile, investors looking for a bargain, i.e., stocks at a discount, are mostly interested in investing in value funds, which pick stocks that tend to trade at a price lower than their fundamentals (i.e. earnings, book value, Debt-Equity) and pay out dividends. In the long run, value stocks are expected to outperform the growth ones across all asset classes and are less vulnerable to trending markets. However, investors interested in choosing value funds for yield, should check the mutual fund yield as not all value funds comprise solely companies that primarily use their earnings to pay out dividends.
Artisan Value Investor (ARTLX - Free Report) seeks capital appreciation for the long run. ARTLX invests nearly one-fourth of its assets in common stocks of foreign companies as well as in equity securities traded in foreign exchanges. The fund focuses on investing not only in developed markets but also in less developed and emerging markets. Artisan Value Investor returned 32.6% over the last one-year period.
George Sertl is one of the fund managers of ARTLX since 2006.
American Funds American Mutual 529A (CMLAX - Free Report) invests mainly in stocks of companies that are expected to contribute in the growth of domestic economy. CMLAX seeks capital and income growth and preservation of capital. The fund focuses on investing in equity securities of companies based in the U.S. and Canada. American Funds American Mutual 529A returned 17% over the past one year.
CMLAX has an expense ratio of 0.68% as compared to the category average of 1.14%.
Fidelity Large Cap Value Enhanced Index seeks capital growth by investing the majority of its assets in companies included in the Russell 1000 Value Index, which consists of large cap companies. FLVEX uses a quantitative analysis of factors including historical valuation, growth and profitability to select companies that are believed to provide more return than the index. The fund focuses on acquiring common stocks of companies across the world. Fidelity Large Cap Value Enhanced Index returned 20.2% over the last one-year period.
As of October 2016, FLVEX held 235 issues, with 3.41% of its assets invested in Exxon Mobil Corp.
JPMorgan Large Cap Value A (OLVAX - Free Report) invests a major portion of its assets in securities of large-cap companies that include common stocks, debt and preferred stocks that can be converted to common stocks. Large-cap companies are those that have market capitalization equivalent to those listed on the Russell 1000 Value Index at the time of purchase. OLVAX seeks capital appreciation. JPMorgan Large Cap Value A returned 26.4% over the past one year.
OLVAX has an expense ratio of 0.93% as compared to the category average of 1.14%.
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4 Zacks Rank #1 Large-Cap Value Funds for Better Returns
Large cap funds are considered as a wise investment choice for risk-averse investors when compared with small cap and mid cap funds. These funds have exposure to large cap stocks, with a long-term performance history and more stability than what mid cap or small caps offer. Companies with market capitalization of more than $10 billion are generally considered large cap. However, due to their significant international exposure, large cap companies might be affected by a global downturn.
Meanwhile, investors looking for a bargain, i.e., stocks at a discount, are mostly interested in investing in value funds, which pick stocks that tend to trade at a price lower than their fundamentals (i.e. earnings, book value, Debt-Equity) and pay out dividends. In the long run, value stocks are expected to outperform the growth ones across all asset classes and are less vulnerable to trending markets. However, investors interested in choosing value funds for yield, should check the mutual fund yield as not all value funds comprise solely companies that primarily use their earnings to pay out dividends.
Below we share with you four top-rated, large-cap value mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of large-cap value funds.
Artisan Value Investor (ARTLX - Free Report) seeks capital appreciation for the long run. ARTLX invests nearly one-fourth of its assets in common stocks of foreign companies as well as in equity securities traded in foreign exchanges. The fund focuses on investing not only in developed markets but also in less developed and emerging markets. Artisan Value Investor returned 32.6% over the last one-year period.
George Sertl is one of the fund managers of ARTLX since 2006.
American Funds American Mutual 529A (CMLAX - Free Report) invests mainly in stocks of companies that are expected to contribute in the growth of domestic economy. CMLAX seeks capital and income growth and preservation of capital. The fund focuses on investing in equity securities of companies based in the U.S. and Canada. American Funds American Mutual 529A returned 17% over the past one year.
CMLAX has an expense ratio of 0.68% as compared to the category average of 1.14%.
Fidelity Large Cap Value Enhanced Index seeks capital growth by investing the majority of its assets in companies included in the Russell 1000 Value Index, which consists of large cap companies. FLVEX uses a quantitative analysis of factors including historical valuation, growth and profitability to select companies that are believed to provide more return than the index. The fund focuses on acquiring common stocks of companies across the world. Fidelity Large Cap Value Enhanced Index returned 20.2% over the last one-year period.
As of October 2016, FLVEX held 235 issues, with 3.41% of its assets invested in Exxon Mobil Corp.
JPMorgan Large Cap Value A (OLVAX - Free Report) invests a major portion of its assets in securities of large-cap companies that include common stocks, debt and preferred stocks that can be converted to common stocks. Large-cap companies are those that have market capitalization equivalent to those listed on the Russell 1000 Value Index at the time of purchase. OLVAX seeks capital appreciation. JPMorgan Large Cap Value A returned 26.4% over the past one year.
OLVAX has an expense ratio of 0.93% as compared to the category average of 1.14%.
To view the Zacks Rank and past performance of all large-cap value mutual funds, investors can click here to see the complete list of large-cap value funds.
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