First, we select the top trending category from more than 200 categories listed on MutualFunds.com based on the percentage increase in monthly viewership. Then, we choose the top three funds with the highest one-year trailing total returns from the top trending category. To ensure funds’ quality and staying power, we only look at those mutual funds with a minimum of $100 million in assets and a track record of at least three years. We also remove those mutual funds closed to new investors and not available for investment outside registered accounts such as retirement or 529.
In this edition, we take a closer look at trending Large-Cap Blend Equity Funds for investors.
Large-cap blend funds focus on a combination of growth, value, and income rather than targeting any single objective. While they have returns similar to the S&P 500 index, they may offer greater income and more downward protection compared to the S&P 500 index that investors may want to consider. But, since each fund uses its own strategy, investors may want to take a look under the hood to find the right option for their portfolios.
Be sure to check out the Large-Cap Blend Equity Funds page to find out more about the other funds in this category as well.
The Vanguard Dividend Growth Fund (VDIGX) takes first place with a 2.57% trailing 12-month total return. With its 0.27% expense ratio and 1.47% yield, it’s the lowest cost and highest yielding fund on today’s list.
The fund provides investors with some level of income while offering exposure to dividend-focused companies across all industries. In particular, the fund holds high-quality companies that have the ability and commitment to grow their dividends over time.
Unlike an index fund, the mutual fund holds just 42 companies with a median market capitalization of $142 billion. These companies are heavily weighted in industrials, healthcare, and consumer staples with overweight positions in industrials. The largest holdings include companies like UnitedHealth Group and Colgate-Palmolive.
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2. ClearBridge Dividend Strategy Fund (SOPAX)
The ClearBridge Dividend Strategy Fund (SOPAX) comes in second place with a 2.33% trailing 12-month total return. With its 1.02% expense ratio and 1.11% yield, the fund stands in the middle of the road on today’s list in terms of cost and income.
The fund seeks to provide a high level of current income, growth of income, and capital preservation in challenging markets by owning high-quality large-cap companies that pay attractive dividends and have the potential to significantly grow their dividends.
Like the Vanguard mutual fund, the ClearBridge Dividend Strategy Fund holds between 40 and 60 companies with a median market capitalization of $145 billion. But unlike the previous fund, it holds overweight positions in information technology, financials, and healthcare. As a result, its largest holdings include Microsoft, Apple, and Raytheon Technologies.
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3. MassMutual Equity Opportunities Fund (MFVAX)
The MassMutual Equity Opportunities Fund (MFVAX) takes third place with a 2.04% trailing 12-month total return. With its 1.28% expense ratio and 0.76% yield, the fund is the highest cost and lowest yielding on today’s list.
The actively-managed, high-conviction fund focuses on delivering consistent alpha while reducing downside risk. According to the fund’s literature, it’s in the top quartile of its Morningstar large-cap blend peer group in terms of alpha, Sharpe ratio, capture ratio, standard deviations, and beta over the past five years.
Unlike the other two funds, the MassMutual Equity Opportunities Fund is concentrated in healthcare, financials, and consumer staples, with smaller positions in industrials and information technology. The fund’s largest holdings include companies like UnitedHealth Group, TJX Companies, and PepsiCo, with about 10% in non-U.S. stocks.
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The Bottom Line
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