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3 Top-Ranked Large-Cap Value Mutual Funds for Great Returns
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Large cap funds are better than small or mid cap ones for risk-averse investors. These funds have exposure to large cap stocks, with a long-term performance history and more stability than what mid 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 value funds that pick stocks having a tendency to trade at a price lower than their fundamentals (i.e. earnings, book value, debt-equity) and pay out dividend. In the long run, value stocks are expected to outperform 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 include only companies that primarily use their earnings to pay out dividend.
Vanguard US Value Investor seeks growth of capital and income over the long run. VUVLX invests nearly all of its assets in undervalued stocks of companies that are domiciled in the U.S. The fund looks for price/earnings (P/E) ratios lower than industry averages in order to identify undervalued common stocks. The fund primarily invests in companies with large and mid-capitalization. It picks undervalued stocks that also have impressive growth prospects. Vanguard US Value Investor has returned 18.7% in the last one-year period.
As of March 2017, VUVLX held 211 issues, with 3.22% of its assets invested in Exxon Mobil Corp.
American Funds American Mutual F2 (AMRFX - Free Report) primarily invests in common stocks, securities convertible into common stocks, non-convertible preferred stocks, U.S. government securities, bonds rated A or better and cash. AMRFX seeks appreciation of capital and a high level of income. American Funds American Mutual F2 has returned 15.9% over the last one-year period.
AMRFX has an expense ratio of 0.42% compared with the category average of 1.06%.
Fidelity Equity Dividend Income (FEQTX - Free Report) seeks reasonable income and capital appreciation. FEQTX normally invests a major portion of assets in equity securities. FEQTX also invests primarily in income-producing equity securities which tend to lead to investments in large capital 'value' stocks.' Fidelity Equity Dividend Income has returned 17% over the last one-year period.
Scott Offen is the fund manager of FEQTX since 2011.
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3 Top-Ranked Large-Cap Value Mutual Funds for Great Returns
Large cap funds are better than small or mid cap ones for risk-averse investors. These funds have exposure to large cap stocks, with a long-term performance history and more stability than what mid 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 value funds that pick stocks having a tendency to trade at a price lower than their fundamentals (i.e. earnings, book value, debt-equity) and pay out dividend. In the long run, value stocks are expected to outperform 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 include only companies that primarily use their earnings to pay out dividend.
Below we share with you three top-ranked, 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.
Vanguard US Value Investor seeks growth of capital and income over the long run. VUVLX invests nearly all of its assets in undervalued stocks of companies that are domiciled in the U.S. The fund looks for price/earnings (P/E) ratios lower than industry averages in order to identify undervalued common stocks. The fund primarily invests in companies with large and mid-capitalization. It picks undervalued stocks that also have impressive growth prospects. Vanguard US Value Investor has returned 18.7% in the last one-year period.
As of March 2017, VUVLX held 211 issues, with 3.22% of its assets invested in Exxon Mobil Corp.
American Funds American Mutual F2 (AMRFX - Free Report) primarily invests in common stocks, securities convertible into common stocks, non-convertible preferred stocks, U.S. government securities, bonds rated A or better and cash. AMRFX seeks appreciation of capital and a high level of income. American Funds American Mutual F2 has returned 15.9% over the last one-year period.
AMRFX has an expense ratio of 0.42% compared with the category average of 1.06%.
Fidelity Equity Dividend Income (FEQTX - Free Report) seeks reasonable income and capital appreciation. FEQTX normally invests a major portion of assets in equity securities. FEQTX also invests primarily in income-producing equity securities which tend to lead to investments in large capital 'value' stocks.' Fidelity Equity Dividend Income has returned 17% over the last one-year period.
Scott Offen is the fund manager of FEQTX since 2011.
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 funds.
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