Large-cap blend mutual funds seek to offer value appreciation through capital gains with relatively less volatility by investing in both value and growth stocks. Blend funds, also known as “hybrid funds”, owe their origin to a graphical representation of a fund’s equity style box. In addition to diversification, blend funds are great for investors seeking a mix of growth and value investment.
Meanwhile, significant exposure to large-cap stocks makes these blend funds safer options for risk-averse investors, when compared to small-cap and mid-cap funds. Companies with market capitalization above $10 billion are generally considered as large-cap firms. Also, these funds are believed to provide long-term performance history and assure more stability than what mid-caps or small caps offer.
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. Investors can click here to see the complete list of large-cap blend funds, their Zacks Rank and past performance.
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 on the S&P 500 Index and tries to maintain a similar company weight. The fund may also invest in derivatives including futures contracts and options on futures contracts for the adjustment of market exposure. DFA US Large Company has a three-year annualized return of 10.7%.
DFUSX has an expense ratio of only 0.08% compared with the category average of 1.01%.
T. Rowe Price Capital Opportunity (PRCOX - Free Report) invests the major portion of its assets in companies that are listed on 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. T. Rowe Price Capital Opportunity has a three-year annualized return of 10.3%.
As of December 2016, PRCOX held 253 issues, with 3.32% of its assets invested in Microsoft Corp.
VALIC Company I Large Cap Core (VLCCX - Free Report) seeks capital appreciation over the long run with the prospect for current income. VLCCX invests the majority of its assets in common stocks of companies having large-size market capitalization. The fund invests in securities that are believed to be undervalued but have a strong growth potential over the long term. VLCCX may invest a maximum of 20% of its assets in securities of foreign issuers. VALIC Company I Large Cap Core has a three-year annualized return of 10.3%.
Guy W. Pope is the fund manager of VLCCX since 2011.
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.
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