Investors looking for exposure to both value and growth stocks, while seeking returns at a lower level of risk, may consider large-cap blend mutual funds. Large-cap funds offer more stability than mid or small caps and are thus safer.
Generally, companies with a market capitalization of more than $10 billion are considered large cap. However, due to their significant international exposure, large-cap companies run the risk of being hit by global woes.
Blend funds, also called hybrid funds, owe their origin to the graphical representation of their equity style box. In addition to diversification, blend funds offer a great mix of growth and value investment.
Below, we share with you three top-ranked large-cap blend mutual funds, namely Voya Corporate Leaders Trust Fund LEXCX, Government Street Equity Fund GVEQX and Vanguard Dividend Growth Fund Investor Shares VDIGX. Each has earned 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.
Voya Corporate Leaders Trust Fund invests in an equal number of shares of common stock of certain American blue-chip corporations. LEXCX has returned 8.4% over the past three years.
As of June 2022, LEXCX held 19 issues, with 40.2% of its assets invested in Union Pacific Corp.
Government Street Equity Fund invests the majority of its net assets in common stocks and shares of ETFs that invest primarily in common stocks. Its portfolio consists of securities whose market cap falls within the range of the S&P 500A Index. GVEQX has returned 9.2% over the past three years.
GVEQX has an expense ratio of 0.84% compared with the category average of 0.99%.
Vanguard Dividend Growth Fund Investor Shares invests primarily in stocks that tend to offer current dividends. VDIGX focuses on large-cap companies that have prospects for long-term total returns as a result of increased earnings and dividends over time. The fund has returned 7.2% over the past three years.
Donald J. Kilbride has been one of the fund managers of VDIGX since 2006.
To view the Zacks Rank and the past performance of all large-cap blend mutual funds, investors can click here to see the complete list of large-cap blend mutual funds.
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