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 VSEQX, U.S. Vector Equity Portfolio DFVEX and Ave Maria Value Fund AVEMX. 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 15.7%.As of the end of June 2025, VSEQX had 592 issues and invested 0.9% of its net assets in Robinhood Markets.
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 Portfolio fund has three-year annualized returns of 14%. DFVEX has an expense ratio of 0.27%.
Ave Maria Value Fund invests most of its net assets in common stocks, preferred stocks and securities convertible into common stock in companies meeting its religious criteria, irrespective of their market capitalization. AVEMX chooses to invest in companies that its advisors believe are priced at a discount to their actual value.
Ave Maria Value Fund has three-year annualized returns of 12.5%. Timothy Schwartz has been one of the fund managers of AVEMX since January 2016.
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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