Large-cap funds are considered prudent 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 caps 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 trading at a discount, are mostly interested 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 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. Goldman Sachs Large Cap Value Insights A ( GCVAX Quick Quote GCVAX - Free Report) seeks long-term appreciation of capital and dividend income. GCVAX invests heavily in securities of large-cap companies, which have market capitalization within the range of the Russell 1000 Index. It invests in securities of domestic and foreign companies that are traded in the United States. The fund may also invest in fixed-income securities. Goldman Sachs Large Cap Value Insights A has returned 18.1% over the last one-year period.
GCVAX has an expense ratio of 0.96% as compared to the category average of 1.09%.
DFA US Large Cap Value II invests a large portion of its assets in securities of large-cap U.S. companies. DFCVX invests all of its assets in its master fund –– The U.S. Large Cap Value of The DFA Investment Trust Company. The fund seeks capital appreciation for the long run. DFA US Large Cap Value II has returned 18.4% over the last one-year period.
Jed Fogdall is one of the fund managers of DFCVX since February 2012.
American Beacon Large Cap Value Investor ( AAGPX Quick Quote AAGPX - Free Report) seeks growth of capital and income for the long run. AAGPX invests a bulk of its assets in equity securities of large-cap domestic companies. The market cap of these companies is similar to those included on the Russell 1000 Index. American Beacon Large Cap Value Investor has returned 15.7% over the last one-year period.
As of October 2017, AAGPX held 204 issues, with 3.86% of its assets invested in S+P500 EMINI FUT DEC17 XCME 20171215.
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. Want key mutual fund info delivered straight to your inbox?
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