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5 Best-Ranked Large-Cap Value Mutual Funds


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Large-cap value mutual funds provide excellent choices for investors who seek returns subject to low risk. While mutual funds investing in value stocks have the potential to deliver higher returns and exhibit lower volatility compared to growth and blend counterparts, large cap funds usually provide a safer option than small-cap or mid cap funds. Thus investors may look for large-cap value funds to earn in a moderate return volatile environment.

Value funds generally invest in stocks that tend to trade at a price lower than its fundamentals (i.e. earnings, book value, Debt-Equity) and pay out dividends. Value stocks are expected to outperform the growth ones across all asset classes when considered on a long-term investment horizon and are less susceptible 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 of companies that primarily use their earnings to pay out dividends.

Meanwhile, large-cap funds have exposure to large-cap stocks that are expected to provide long-term performance history and assure 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.

Below we share with you five top-rated, 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. 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 .

Fidelity Blue Chip Value ( FBCVX ) invests a large chunk of its assets in common stocks of blue-chip companies. FBCVX invests in securities of companies that are believed to be undervalued with respect to factors including sales, earnings and growth potential. FBCVX invests in securities issued throughout the globe. The Fidelity Blue Chip Value fund has a three-year annualized return of 16.8%.

Sean Gavin is the fund manager of FBCVX since Oct 17, 2014.

Dodge & Cox Stock ( DODGX ) seeks long-term principal and income appreciation. DODGX maintains a diversified portfolio by investing the lion's share of its assets in equity securities, which include common stocks, depositary receipts and preferred stocks. DODGX may invest one-fifth of its assets in dollar-denominated securities of non-S&P 500 foreign companies that are traded in the U.S. The Dodge & Cox Stock fund has a three-year annualized return of 16.8%.

As of September 2015, DODGX held 69 issues, with 4.16% of its assets invested in Wells Fargo & Co.

Dreyfus Strategic Value A ( DAGVX ) uses quantitative and fundamental analysis to invest the majority of its assets in stocks. DAGVX follows a "bottom-up" approach to identify stocks with attractive value, encouraging fundamentals and a strong momentum. DAGVX may invest a maximum of 30% of its assets in securities of non-US companies. The Dreyfus Strategic Value A fund has a three-year annualized return of 17.1%.

DAGVX has an expense ratio of 0.98% as compared to the category average of 1.11%.

VALIC Company II Large Cap Value ( VACVX ) seeks higher total return than the Russell 1000 Value Index. VACVX invests a large share of its assets in equity securities of large-cap companies with market capitalization more than the smallest member of the Russell 1000 Index. The VALIC Company II Large Cap Value fund has a three-year annualized return of 15.9%.

As of August 2015, VACVX held 126 issues, with 4.1% of its assets invested in Occidental Petroleum Corp.

AB Value A ( ABVAX ) generally invests in equity securities of domestic large-cap firms to construct a diversified portfolio. ABVAX focuses on acquiring stocks of companies that are believed to be undervalued compared to their future earnings growth and dividend-paying prospects. The AB Value A fund has a three-year annualized return of 15.1%.

ABVAX has an expense ratio of 1.04% as compared to the category average of 1.11%.

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 .

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds .


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Mutual Funds
Referenced Symbols: FBCVX , DODGX , DAGVX , VACVX , ABVAX




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