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 FMI Common Stock Fund FMIMX, U.S. Vector Equity Portfolio DFVEX and Fidelity Mid-Cap Stock Fund FMCSX. 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.
FMI Common Stock Fund invests most of its net assets in common stocks of domestic and foreign small- to medium-capitalization companies with a market cap of less than $7 billion at the time of purchase. FMIMX advisors invest in companies that are traded on a national securities exchange or national securities association. The fund also invests in ADRs and ADSs that are dollar-denominated and traded in the United States.
FMI Common Stock Fund has three-year annualized returns of 16.1%. As of the end of March 2025, FMIMX had 28 issues and invested 5.2% of its net assets in Genpact.
U.S. Vector Equity Portfolio fund invests most of its net assets in a well-diversified and broad group of U.S. operating companies, preferably in smaller capitalization, lower relative price and higher profitability companies in the United States. DFVEX advisors generally define the U.S. Universe as a set of U.S. operating companies listed on a securities exchange in the country that are market-capitalization weighted.
U.S. Vector Equity Portfoliohas three-year annualized returns of 14%. DFVEX has an expense ratio of 0.27%.
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 12.2%. Nicola Stafford has been one of the fund managers of FMCSX since July 2017.
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).
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