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Buy These 4 Large Cap Growth Mutual Funds with Low Expense Ratios
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Large cap stocks have been significantly outperforming small cap stocks with all three of the major large cap indexes producing 4 to 6 times the year to date returns (YTD) compared to that of the Russell 2000 Index. The Russell 2000 has posted a YTD return of +2.7% while the DOW, S&P 500 and NASDAQ Indexes have posted +11.4%, +10.2%, and +17.7% gains respectively. After an impressive Q2 earnings season, large cap stocks have pushed all three major indexes to record highs with no signs of slowing down in 2017.
This positive growth will help mutual funds that are overweighed in the large cap growth sector produce outsized gains over the next several quarters. We have identified four such funds that are well managed, and positioned to benefit from the continued bull market.
Criteria for Fund Search
By utilizing the Zacks Mutual Fund Screener, we screened for six important criteria; a year to date (YTD) return of at least +15%, a manager rating of +2.0% or greater, at a minimum 60% of the portfolio in large cap growth stocks, an expense ratio at or below 1.1%, no load fees, and a Zacks Rank #1. This screen produced 17 funds that are exceeding 15% growth, have low expense ratios, no load fees, and include a manager that is outperforming other large cap fund managers by at least +2.0%.
The Funds
American Century NT Growth Fund G Class is a Zacks Ranked #1 (Strong Buy) fund that seeks long-term capital growth. The fund normally invests in stocks of companies that the adviser believes will increase in value over time. The portfolio managers use a variety of analytical research tools and techniques to identify the stocks of larger-sized companies that meet their investment criteria. Under normal market conditions, the fund's portfolio will primarily consist of securities of companies demonstrating business improvement. The fund is not permitted to invest in securities issued by companies assigned the Global Industry Classification Standard (GICS) for the tobacco industry.
Cost Specifics: There is no minimum initial investment level, it has a 0.77% management fee, and the total expense ratio is 0.78%.
Performance and Management: YTD +15.6%, 1 year +21.3%, 5 year +13.5%, and 10 year +9.0%. ACLTX is managed by Gregory Woodhams who is the Chief Investment Officer (CIO) of U.S. Large Cap Growth Equities at American Century, and he has a CFA designation. He has been managing the fund since 2006 and has a current Zacks management rating of 2.4 (indicating that he has outperformed his peers by +2.4% over the last year).
Top Holdings: As of the most recent filing, the top 5 positions are in Alphabet, Amazon.com, Apple, Pepsi, and Microsoft.
Fidelity Blue Chip Growth K (FBGKX) is a Zacks Rank #1 (Strong Buy) that seeks growth of capital over the long term. The fund invests primarily in common stocks of well-known and established companies. It normally invests at least 80% of assets in blue chip companies. The fund invests in companies that Fidelity Management & Research Company believes have above-average growth potential. It invests in securities of domestic and foreign issuers.
Cost Specifics: There is no minimum initial investment required, it has a 0.64% management fee, and the total expense ratio is 0.56.
Performance and Management: YTD +19.5%, 1 year +28.5%, 5 year +17.2%. FBGKX is managed by Sonu Kalra who is a portfolio manager with an M.B.A. from the Warton School of Business at the University of Pennsylvania in 1998. Mr. Kalra has a Zacks manager rating of 3.7 (indicating that he has outperformed his peers by +3.7% over the last year)
Top Holdings: As of the most recent filing, the top 5 positions are in Apple, Alphabet, Amazon.com, Facebook, and Tesla.
Janus Henderson Forty Portfolio Institutional Class (JACAX - Free Report) is a Zacks Rank #1 (Strong Buy) that is managed by Janus group. The objective of this fund is to seek long-term capital growth. The fund invests primarily in common stocks selected for their growth potential. The fund invests in companies of any size, from larger, well-established companies to smaller, emerging growth companies. The fund offers dividends in June and December. Capital gains are distributed in June.
Cost Specifics: This fund has no required minimum investment, it has a 0.64% management fee, and the total expense ratio is 0.72.
Performance and Management: YTD +19.1%, 1 year +232.5%, 5 year +15.9%, and 10 year +9.3%. JACAZ is managed by A. Douglas Rao who has been a portfolio manager with Janus since 2013. Mr. Rao has an M.B.A. from the University of California and currently has a Zacks manager rating of 3.3 (indicating that he has outperformed his peers by +3.3% over the last year).
Top Holdings: As of the most recent filing, the top 5 positions are in Alphabet, Microsoft, Activision Blizzard, Mastercard, and Salesforce.com.
John Hancock Funds Blue Chip Growth Fund Class 1 (JIBCX - Free Report) is a Zacks Rank #1 (Strong Buy) that seeks to provide long-term growth of capital; current income is a secondary objective. The fund normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks of large- and medium-sized blue chip growth companies.
Cost Specifics: This fund has no required minimum investment, it has 0.05% 12b-1 fee, a 0.78% management fee, and an expense ratio of 0.83.
Performance and Management: YTD +19.2%, 1 year +27.5%, 5 year +16.7%, 10 year +9.3%. JIBCX is managed by Larry J. Puglia who is a CFA, and a CPA. He has an M.B.A. from the University of Virginia, where he was named a Shermet Scholar with the Highest Honors. Mr. Puglia has a Zacks manager rating of 2.0 (indicating that he has outperformed his peers by +2.0% over the last year).
Top Holdings: As of the most recent filing, the top 5 positions are in Amazon.com, Facebook, The Priceline Group, Alphabet, and Microsoft.
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Buy These 4 Large Cap Growth Mutual Funds with Low Expense Ratios
Large cap stocks have been significantly outperforming small cap stocks with all three of the major large cap indexes producing 4 to 6 times the year to date returns (YTD) compared to that of the Russell 2000 Index. The Russell 2000 has posted a YTD return of +2.7% while the DOW, S&P 500 and NASDAQ Indexes have posted +11.4%, +10.2%, and +17.7% gains respectively. After an impressive Q2 earnings season, large cap stocks have pushed all three major indexes to record highs with no signs of slowing down in 2017.
This positive growth will help mutual funds that are overweighed in the large cap growth sector produce outsized gains over the next several quarters. We have identified four such funds that are well managed, and positioned to benefit from the continued bull market.
Criteria for Fund Search
By utilizing the Zacks Mutual Fund Screener, we screened for six important criteria; a year to date (YTD) return of at least +15%, a manager rating of +2.0% or greater, at a minimum 60% of the portfolio in large cap growth stocks, an expense ratio at or below 1.1%, no load fees, and a Zacks Rank #1. This screen produced 17 funds that are exceeding 15% growth, have low expense ratios, no load fees, and include a manager that is outperforming other large cap fund managers by at least +2.0%.
The Funds
American Century NT Growth Fund G Class is a Zacks Ranked #1 (Strong Buy) fund that seeks long-term capital growth. The fund normally invests in stocks of companies that the adviser believes will increase in value over time. The portfolio managers use a variety of analytical research tools and techniques to identify the stocks of larger-sized companies that meet their investment criteria. Under normal market conditions, the fund's portfolio will primarily consist of securities of companies demonstrating business improvement. The fund is not permitted to invest in securities issued by companies assigned the Global Industry Classification Standard (GICS) for the tobacco industry.
Cost Specifics: There is no minimum initial investment level, it has a 0.77% management fee, and the total expense ratio is 0.78%.
Performance and Management: YTD +15.6%, 1 year +21.3%, 5 year +13.5%, and 10 year +9.0%. ACLTX is managed by Gregory Woodhams who is the Chief Investment Officer (CIO) of U.S. Large Cap Growth Equities at American Century, and he has a CFA designation. He has been managing the fund since 2006 and has a current Zacks management rating of 2.4 (indicating that he has outperformed his peers by +2.4% over the last year).
Top Holdings: As of the most recent filing, the top 5 positions are in Alphabet, Amazon.com, Apple, Pepsi, and Microsoft.
Fidelity Blue Chip Growth K (FBGKX) is a Zacks Rank #1 (Strong Buy) that seeks growth of capital over the long term. The fund invests primarily in common stocks of well-known and established companies. It normally invests at least 80% of assets in blue chip companies. The fund invests in companies that Fidelity Management & Research Company believes have above-average growth potential. It invests in securities of domestic and foreign issuers.
Cost Specifics: There is no minimum initial investment required, it has a 0.64% management fee, and the total expense ratio is 0.56.
Performance and Management: YTD +19.5%, 1 year +28.5%, 5 year +17.2%. FBGKX is managed by Sonu Kalra who is a portfolio manager with an M.B.A. from the Warton School of Business at the University of Pennsylvania in 1998. Mr. Kalra has a Zacks manager rating of 3.7 (indicating that he has outperformed his peers by +3.7% over the last year)
Top Holdings: As of the most recent filing, the top 5 positions are in Apple, Alphabet, Amazon.com, Facebook, and Tesla.
Janus Henderson Forty Portfolio Institutional Class (JACAX - Free Report) is a Zacks Rank #1 (Strong Buy) that is managed by Janus group. The objective of this fund is to seek long-term capital growth. The fund invests primarily in common stocks selected for their growth potential. The fund invests in companies of any size, from larger, well-established companies to smaller, emerging growth companies. The fund offers dividends in June and December. Capital gains are distributed in June.
Cost Specifics: This fund has no required minimum investment, it has a 0.64% management fee, and the total expense ratio is 0.72.
Performance and Management: YTD +19.1%, 1 year +232.5%, 5 year +15.9%, and 10 year +9.3%. JACAZ is managed by A. Douglas Rao who has been a portfolio manager with Janus since 2013. Mr. Rao has an M.B.A. from the University of California and currently has a Zacks manager rating of 3.3 (indicating that he has outperformed his peers by +3.3% over the last year).
Top Holdings: As of the most recent filing, the top 5 positions are in Alphabet, Microsoft, Activision Blizzard, Mastercard, and Salesforce.com.
John Hancock Funds Blue Chip Growth Fund Class 1 (JIBCX - Free Report) is a Zacks Rank #1 (Strong Buy) that seeks to provide long-term growth of capital; current income is a secondary objective. The fund normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks of large- and medium-sized blue chip growth companies.
Cost Specifics: This fund has no required minimum investment, it has 0.05% 12b-1 fee, a 0.78% management fee, and an expense ratio of 0.83.
Performance and Management: YTD +19.2%, 1 year +27.5%, 5 year +16.7%, 10 year +9.3%. JIBCX is managed by Larry J. Puglia who is a CFA, and a CPA. He has an M.B.A. from the University of Virginia, where he was named a Shermet Scholar with the Highest Honors. Mr. Puglia has a Zacks manager rating of 2.0 (indicating that he has outperformed his peers by +2.0% over the last year).
Top Holdings: As of the most recent filing, the top 5 positions are in Amazon.com, Facebook, The Priceline Group, Alphabet, and Microsoft.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>