We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mid-cap value mutual funds provide excellent opportunities for investors looking for returns with lesser risk by gaining exposure to stocks that are available at a discounted price. While large companies are normally known for stability and the smaller ones for growth, mid caps offer growth and stability simultaneously. Companies with market capitalization between $2 billion and $10 billion are generally considered mid cap.
Meanwhile, value mutual funds are those that invest in stocks trading at discounts to book value plus have a low price-to-earnings ratio and high dividend yields. Value investing is always a coveted strategy, and for a good reason. After all, who doesn’t want to add stocks that have low PEs, a solid outlook and decent dividends? However, not all value funds solely comprise companies that primarily use their earnings to pay out dividends. Investors interested in choosing value funds for yield, should surely check the mutual fund yield.
Fidelity Mid Cap Value (FSMVX - Free Report) invests a large chunk of its assets in securities of those mid-cap companies that have market cap similar to those included on the S&P MidCap 400 Index or the Russell Midcap Index. The fund seeks capital growth for the long run. FSMVX invests in both U.S. and non-U.S. companies. Fidelity Mid Cap Value has returned 16.3% over the last one-year period.
As of December 2017, FSMVX held 84 issues, with 2.60% of its assets invested in Xcel Energy Inc.
Vanguard Selected Value Fund Investor Shares (VASVX - Free Report) seeks growth of capital and income for the long run. VASVX invests its assets heavily in undervalued stocks issued by mid-cap domestic companies. Undervalued stocks are those whose prices trade below the book value. Vanguard Selected Value Fund Investor Shares has returned 19.9% over the last one-year period.
Benjamin Silver is one of the fund managers of VASVX since 2017.
TIAA-CREF Mid-Cap Value Premier (TRVPX - Free Report) invests a bulk of its assets in equity securities of mid cap companies that are believed to be undervalued according to Teachers Advisors, Inc. TRVPX seeks a high level of total returns through capital growth. TRVPX focuses on acquiring equities of companies that are located in the U.S. and having market capitalization within the range of the Russell Midcap Value Index. TIAA-CREF Mid-Cap Value Premier has returned 12.9% over the last one-year period.
TRVPX has an expense ratio of 0.54% as compared with the category average of 1.14%.
Image: Bigstock
3 Top Mid-Cap Value Mutual Funds to Invest In
Mid-cap value mutual funds provide excellent opportunities for investors looking for returns with lesser risk by gaining exposure to stocks that are available at a discounted price. While large companies are normally known for stability and the smaller ones for growth, mid caps offer growth and stability simultaneously. Companies with market capitalization between $2 billion and $10 billion are generally considered mid cap.
Meanwhile, value mutual funds are those that invest in stocks trading at discounts to book value plus have a low price-to-earnings ratio and high dividend yields. Value investing is always a coveted strategy, and for a good reason. After all, who doesn’t want to add stocks that have low PEs, a solid outlook and decent dividends? However, not all value funds solely comprise companies that primarily use their earnings to pay out dividends. Investors interested in choosing value funds for yield, should surely check the mutual fund yield.
Below we share with you three top-ranked mid-cap value mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Fidelity Mid Cap Value (FSMVX - Free Report) invests a large chunk of its assets in securities of those mid-cap companies that have market cap similar to those included on the S&P MidCap 400 Index or the Russell Midcap Index. The fund seeks capital growth for the long run. FSMVX invests in both U.S. and non-U.S. companies. Fidelity Mid Cap Value has returned 16.3% over the last one-year period.
As of December 2017, FSMVX held 84 issues, with 2.60% of its assets invested in Xcel Energy Inc.
Vanguard Selected Value Fund Investor Shares (VASVX - Free Report) seeks growth of capital and income for the long run. VASVX invests its assets heavily in undervalued stocks issued by mid-cap domestic companies. Undervalued stocks are those whose prices trade below the book value. Vanguard Selected Value Fund Investor Shares has returned 19.9% over the last one-year period.
Benjamin Silver is one of the fund managers of VASVX since 2017.
TIAA-CREF Mid-Cap Value Premier (TRVPX - Free Report) invests a bulk of its assets in equity securities of mid cap companies that are believed to be undervalued according to Teachers Advisors, Inc. TRVPX seeks a high level of total returns through capital growth. TRVPX focuses on acquiring equities of companies that are located in the U.S. and having market capitalization within the range of the Russell Midcap Value Index. TIAA-CREF Mid-Cap Value Premier has returned 12.9% over the last one-year period.
TRVPX has an expense ratio of 0.54% as compared with the category average of 1.14%.
To view the Zacks Rank and past performance of all mid-cap value mutual funds, investors can click here to see the complete list of funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>