Investors interested in comparatively less risky returns through exposure to both growth and value securities may opt for mid-cap blend mutual funds. While mid-cap funds are expected to offer the best of both large- and small-cap ones, blend funds, also known as "hybrid funds," aim for value appreciation by capital gains. Companies with market capitalization between $2 billion and $10 billion are generally considered mid-cap firms.
Moreover, mid-cap funds are believed to provide higher returns than their large-cap counterparts while witnessing a lower level of volatility than the small-cap ones. Meanwhile, blend funds provide significant exposure to both growth and value stocks. These funds owe their origin to a graphical representation of a fund's equity-style box.
Below, we will share with you three mid-cap blend mutual funds, namely Vanguard Strategic Equity Fund VSEQX, Fidelity Mid-Cap Stock Fund FMCSX and Hartford Schroders US Midcap Opportunities Fund SMDIX. Each has earned a Zacks Mutual Fund #1 Rank (Strong Buy), as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all mid-cap blend funds, investors can click here to see the complete list of funds.
Vanguard Strategic Equity Fund invests most of its net assets in small and mid-cap U.S. companies, which, according to its advisors, have the right balance between strong growth prospects and reasonable valuations relative to their industry peers. VSEQX advisors use quantitative techniques to evaluate all securities using the MSCI U.S. Small + Mid Cap 2200 Index as the benchmark index, with a risk profile similar to that of the index.
Vanguard Strategic Equity Fund has three-year annualized returns of 21.1%. As of the end of December 2025, VSEQX had 589 issues and invested 0.9% of its net assets in State Street.
Fidelity Mid-Cap Stock Fund invests most of its net assets in common stocks of domestic and foreign companies with market capitalizations similar to those listed on the Russell Midcap Index or the S&P MidCap 400 Index. FMCSX advisors also invest in large and small-cap companies with growth or value characteristics, or sometimes both.
Fidelity Mid-Cap Stock Fund has three-year annualized returns of 16.6%. FMCSX has an expense ratio of 0.57%.
Hartford Schroders US Midcap Opportunities Fund invests most of its net assets in common and preferred stocksof mid-cap companies located in the United States. SMDIX advisors may also invest in over-the-counter securities.
Hartford Schroders US Midcap Opportunities Fund has three-year annualized returns of 14.5%. Joanna Wald has been one of the fund managers of SMDIX since December 2013.
To view the Zacks Rank and past performance of mid-cap blend mutual funds, investors can click here to see the complete list of funds.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
