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3 Mid-Cap Blend Mutual Funds for Higher Returns

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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 capitalization 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 the graphical representation of a fund's equity-style box.

Below, we share with you three top-ranked mid-cap blend mutual funds, viz., MFS Blended Research Mid Cap Eq (BMSFX - Free Report) , Vanguard Strategic Equity Inv (VSEQX - Free Report) and DFA US Vector Equity (DFVEX - Free Report) . 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.

MFS Blended Research Mid Cap Eq fund invests most of its net assets in equity securities of mid-cap companies. BMSFX advisors invest in common stocks, equity interests in real estate investment trusts and other securities that represent an ownership interest in a company or other issuers.

MFS Blended Research Mid Cap Equity Fund has three-year annualized returns of 6.5%. As of the end of February 2024, BMSFX had 148 issues and invested 2.3% of its net assets in Spotify Technology S.A.

Vanguard Strategic Equity Inv fund seeks maximum long-term capital growth by investing primarily in stocks of small and mid-size companies. VSEQX advisors use computer-driven valuation models to assess valuation criteria such as earnings and cash flow.

Vanguard Strategic Equity Inv has three-year annualized returns of 5.7%. VSEQX has an expense ratio of 0.17% compared with the category average of 0.92%.

DFA US Vector Equity fund invests the majority of its net assets in a diverse group of securities of companies operating in the United States, with a focus on small-cap companies. DFVEX advisors also look at lower relative share price and higher profitability while making their investment decisions.

DFA US Vector Equity has three-year annualized returns of 5.4%. John A. Hertzer has been one of the fund managers of DFVEX since 2022.

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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