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-cap funds and are thus safer.
Companies with a market capitalization of more than $10 billion are considered large caps. However, due to their significant international exposure, these 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 large-cap blend mutual funds, viz., Fidelity Advisor Diversified Stock Fund FDESX, Vanguard Growth and Income Fund Investor Shares VQNPX and DFA U.S. Social Core Equity 2 Portfolio DFUEX. Each has earned a Zacks Mutual Fund #1 Rank (Strong Buy), as we expect these to outperform their peers in the future. Investors can click here to see the complete list of funds.
Fidelity Advisor Diversified Stock Fund invests most of its net assets in common stocks of domestic and foreign companies using growth stocks, value stocks, or both strategies. FDESX advisors choose to invest in stocks based on fundamental analysis factors like industry position as well as market and economic conditions.
Fidelity Advisor Diversified Stock Fund has three-year annualized returns of 9.6%. As of the end of September 2024, FDESX had 226 issues and invested 7.8% of its net assets in Apple Inc.
Vanguard Growth and Income Fund Investor Shares fund seeks capital appreciation along with dividend income greater than the return of the Standard & Poor’s 500 Index by investing most of its net assets in common stocks that are part of the S&P 500 Index. VQNPX advisors use quantitative methods to select a group of stocks that are expected to give a higher total return than that of the index
Vanguard Growth and Income Fund Investor Shares has three-year annualized returns of 9.2%. VQNPX has an expense ratio of 0.35%.
DFA U.S. Social Core Equity 2 Portfolio fund invests most of its net assets in a diversified equity portfolio of domestic companies irrespective of their market capitalization. DFUEX advisors generally invest in small-cap, high-profitability companies that are priced lower than their U.S. coverage universe.
DFA U.S. Social Core Equity 2 Portfolio fund has three-year annualized returns of 8%. John A. Hertzer has been one of the fund managers of DFUEX since February 2022.