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 cap 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 share with you three top-ranked mid-cap blend mutual funds, namely Boston Trust SMID Cap Fund BTSMX, U.S. Vector Equity Portfolio DFVEX and Fidelity Mid-Cap Stock Fund FMCSX. 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.
Boston Trust SMID Cap Fund invests the majority of its assets in a varied portfolio of domestic equity securities of small and mid-cap companies. BTSMX defines small and mid-cap issuers as those with market cap within the range encompassed by the Russell 2500TM Index at the time of purchase. The fund has returned 7.5% over the past three years.
As of September 2022, BTSMX held 73 issues, with 2.4% of its assets invested in Medpace Holdings.
U.S. Vector Equity Portfolio invests most of its net assets in a diverse group of companies operating in the United States with high exposure in lower relative price and higher profitability companies. DFVEX chooses to invest in companies with market cap as compared to the weighted set of U.S. operating companies listed on the U.S. securities exchange. The fund has returned 7.9% over the past three years.
DFVEX has an expense ratio of 0.28% compared with the category average of 1.01%.
Fidelity Mid-Cap Stock Fund invests the majority of its assets in common stocks of mid-cap companies (companies with market capitalization similar to companies on the Russell MidcapA Index or the S&P MidCap 400A Index). FMCSX invests in growth stocks or value stocks or both. The fund has returned 10.3% over the past three years.
Nicola Stafford has been one of the fund managers of FMCSX since 2017.
To view the Zacks Rank and the past performance of all mid-cap blend mutual funds, investors can click here to see the complete list of mid-cap blend mutual funds.
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