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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 Large Cap Stock Fund FLCSX, 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 Large Cap Stock Fund invests most of its net assets in common stocks of domestic and foreign companies with large market capitalization similar to that of the companies listed on the Russell 1000 Index or the S&P 500 Index at the time of purchase. FLCSX advisors choose to invest in either value or growth stocks or a blend of both, along with sound fundamentals like financial condition, industry position, market and economic conditions.
Fidelity Large Cap Stock Fund has three-year annualized returns of 11.9%.As of the end of October 2024, FLCSX had 178 issues and invested 6.2% of its net assets in Microsoft Corp.
Vanguard Growth and Income Fund Investor Shares 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 8.6%. 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 8.1%. John A. Hertzer has been one of the fund managers of DFUEX since February 2022.