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 unavailable for investment outside registered accounts such as retirement or 529.
In this edition, we look closely at trending U.S. Large Cap Value Equity Funds for investors.
It’s no secret that value stocks typically outperform growth stocks during a recession. So with investors bracing for a possible slowdown this year, it’s no surprise that value stocks have come back in vogue. And large-cap value stocks offer more safety with less volatility than their mid- or small-cap peers.
Be sure to check out the U.S. Large Cap Value Equity Funds page to find out more about the other funds in this category as well.
The Voya Corporate Leaders Trust Fund (LEXCX) comes in first place with a 3.97% return over the trailing 12-month period. With a 0.51% expense ratio and 1.65% trailing 12-month yield, the fund is also the cheapest and highest yielding option.
The unit investment trust seeks long-term capital growth and income by investing in a fixed portfolio of blue-chip stocks. In 1935, the fund began with an equal number of common shares of leading U.S. companies at the time; since then, its holdings have only changed due to spin-offs or mergers since inception.
Currently, the fund holds a portfolio of 22 blue-chip companies with a decades-long track record, including large positions in Union Pacific Corp. (UNP), Berkshire Hathaway Inc. (BRK), and Exxon Mobil Corp. (XOM). Not surprisingly, the holdings are concentrated in industrials (39%), energy (28%), and financial services (14%).
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2. Invesco Comstock Select Fund (CGRWX)
The Invesco Comstock Select Fund (CGRWX) comes in second place with a 2.48% 12-month trailing return. With a 0.91% expense ratio and 1.28% yield, the fund stands in the middle of the road in terms of expense and yield on today’s list.
The fund seeks capital appreciation by investing in large-cap value stocks. In addition to typical large-cap stocks, the fund may invest in real estate investment trusts (REITs) and up to 25% of its net assets in foreign issuers, including those in emerging markets. It may also mitigate the currency risk of these holdings with derivatives.
Unlike the previous fund’s focus on industrials and energy, the Invesco Comstock Select Fund’s two most significant sector holdings include financials (20%) and healthcare (20%). However, its largest individual holdings include energy companies, like Marathon Oil (4.77%), Exxon Mobil (4.62%), and ConocoPhillips (3.5%).
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3. MassMutual Fundamental Value Fund (MFUAX)
The MassMutual Fundamental Value Fund (MFUAX) comes in third place with a 2.72% decline over the trailing 12-month period. With a 1.21% expense ratio and 0.74% yield, the fund is also the most costly and lowest yield option on today’s list.
The fund seeks long-term total return by investing in undervalued large-cap equities. In particular, the fund managers invest at least 80% of their net assets in common stock, preferred stock, convertible securities, preferred stocks, rights, and warrants. In addition, the fund may invest up to 20% of its total assets in foreign issuers or ADRs.
The fund’s portfolio focuses on healthcare (20%), financials (18%), industrials (13%), and energy (11%). Some of the fund’s largest holdings include JPMorgan Chase (2.66%), UnitedHealth Group (2.50%), and CVS Health Corp. (2.33%).
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The Bottom Line
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