Risk-averse investors interested in both growth and value investing may opt for large-cap blend mutual funds to achieve their objective. While large-cap funds usually provide a safer option than small-cap and mid-cap funds, blend funds provide significant exposure to both growth and value stocks. Blend funds – also called “hybrid funds” – aim value appreciation by capital gains. It owes its origin to a graphical representation of a fund’s equity style box.
Meanwhile, large-cap blend funds have exposure to large-cap stocks, providing long-term performance history and assuring more stability than what mid caps or small caps offer. Generally, companies with market capitalization of more than $10 billion are considered large-cap firms. However, due to their significant international exposure, large-cap companies might be affected by a global downturn.
Below we share with you three top-rated large-cap blend mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all large-cap blend mutual funds, investors can click here to see the complete list of large-cap blend funds .
DFA US Large Company (DFUSX - Free Report) seeks total investment return similar to that of the S&P 500 Index. DFUSX invests a minimum of 95% of its assets in securities of companies listed in the S&P 500 Index and tries to maintain a similar company weight. DFUSX may also invest in derivatives including futures contracts and options on futures contracts for adjustment of market exposure. The DFA US Large Company fund has a three-year annualized return of 11.4%.
DFUSX has an expense ratio of only 0.08% compared with the category average of 1.02%.
T. Rowe Price Capital Opportunity (PRCOX - Free Report) invests the major portion of its assets in companies that are listed in the S&P 500 Index. PRCOX is expected to maintain company weights similar to the index. The fund maintains a portfolio of 250–325 stocks. Though PRCOX invests in companies throughout the globe irrespective of market capitalization, it primarily focuses on acquiring common stocks of domestic large-cap firms. The T. Rowe Price Capital Opportunity fund has a three-year annualized return of 11.5%.
As of March 2016, PRCOX held 246 issues, with 3.15% of its assets invested in Apple Inc.
Vanguard Growth & Income Investor (VQNPX - Free Report) seeks stocks that are believed to provide dividend income and have impressive growth prospect and that, as a group, appears likely to provide higher returns than the Standard & Poor’s 500 Index while having similar risk characteristics. VQNPX invests in a diversified group of stocks chosen with the help of quantitative analysis. VQNPX invests a minimum of 65% of its assets in companies included in the index. The Vanguard Growth & Income Investor fund has a three-year annualized return of 11.7%.
VQNPX has an expense ratio of 0.34% as compared to the category average of 1.02%.
To view the Zacks Rank and past performance of all large-cap blend Mutual Funds, investors can click here to see the complete list of funds .
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank.