Below we share with you three top-ranked, large-cap value mutual funds. Each sports a Zacks Mutual Fund Rank #1 (Strong Buy).
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August 31, 2021 4 min read
This story originally appeared on Zacks
Large-cap funds are better choices than small or mid-cap funds for risk-averse investors. These funds have exposure to large-cap stocks, with a long-term performance history and more stability compared to mid or small caps. Companies with a market capitalization of more than $10 billion are generally considered large caps. However, due to their significant international exposure, large-cap companies might be affected by a global downturn.
Meanwhile, investors who are looking for a bargain — stocks trading at a discount — are mostly interested in value funds, which comprise stocks that tend 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 the growth ones across all asset classes and are less vulnerable to the trending markets. However, investors interested in choosing value funds for yield should check the mutual fund yield as not all value funds comprise only companies that use their earnings primarily to pay out dividend.
Below we share with you three top-ranked, large-cap value mutual funds. Each sports 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 funds.
Fidelity Value Discovery Fund FVDFX aims for capital appreciation. The fund invests assets in common stocks of companies that the fund manager believes are undervalued in the marketplace in relation to factors such as assets, sales, earnings, growth potential, or cash flow, or in relation to securities of other companies in the same industry. FVDFX has returned 12.3% in the past three years.
FVDFX has an expense ratio of 0.66% compared with the category average of 0.94%.
Bridge Builder Large Cap Value Fund BBVLX aims for capital appreciation. The fund invests the majority of its assets in in the securities of large capitalization companies and other instruments, such as certain investment companies, with economic characteristics that seek to track the performance of securities of large-capitalization companies. BBVLX has returned 14.2% over the past three years.
Mark Giambrone is one of the fund managers of BBVLX since 2015.
Fidelity Equity-Income Fund FEQIX aims to provide reasonable income, along with the potential for capital appreciation. The fund invests the majority of its assets in income-producing equity securities, which tend to lead to investments in large-cap value stocks. FEQIX has returned 12.8% over the past three years.
As of the end of July 2021, FEQIX held 126 issues, with 3.33% of its assets invested in JPMorgan Chase & Co.
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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