Top 10 Best Large Cap Value Stock Mutual Fund: Domestic Equity Funds Series 2011

Top Large Value
Top Large Value

Intro

When investing in equity mutual funds, there are many different classes represent the fund such as large cap, mid cap or small cap. For instance, investing in domestic equity fund especially large cap stock funds, there are three different categories such as large growth fund, large blend fund and large value fund. I’ll especially focus on large value funds in this article. Large value funds focus on big or large companies that are less expensive and growing more slowly than other large-cap stocks. These large value funds often feature investments in energy, financial, or manufacturing sectors. Though, this might have change recently.

How to invest in value companies?

Value investing is an investment paradigm that derives from the ideas on investment and speculation taught by Ben Graham & David Dodd in Columbia Business School. Ben Graham is also known as “Value Investing” father with his book "The Intelligent Investor". Disciples of value investing include Warren Buffett (Berkshire Hathaway CEO), William J. Ruane, Irving Kahn, Jean-Marie Eveillard, Hani M. Anklis, and Walter J. Schloss. Value investing means investors buy stocks or companies which appear underpriced by some forms of fundamental analysis. Some examples of value investing include:

  • Stocks trade at discounts to book value or tangible book value
  • Stocks have high dividend yields
  • Companies have low price-to-earning (PE) multiples
  • Stocks have low price-to-book (P/B) ratios


Selection Criteria

What are my criteria for Top 10 Best Large Value Domestic Stock Mutual Funds? Or how did I choose these large value equity funds?

  1. The fund has big net asset (>more than 1 Billions). The bigger means the better hence more investors (retails or institutional investors) invest in this fund.
  2. The fund should have 3 or more stars of Morningstar rating. With 3 or more stars rating, the funds usually have performed very well under any market condition.

Note: You will need brokerage to buy these fund such as Fidelity, Vanguard, Scottrade and more.

Best Large Value Stock Funds

The Top 10 Best Large Value Domestic Equity Mutual Funds are:

  1. American Funds Washington Mutual
  2. Dodge & Cox Stock
  3. Vanguard Windsor II Investor
  4. T. Rowe Price Equity Income
  5. Eaton Vance Large Cap Value A
  6. American Funds American Mutual A
  7. Franklin Mutual Shares A
  8. MFS Value A
  9. Vanguard Value Index
  10. Vanguard Windsor


Best Large Value Fund Info

(click column header to sort results)
No  
Mutual Funds Description  
Ticker  
Yield  
Expense ratio  
Morningstar Rating  
Total Asset (Bil)  
Min. To Invest  
1
American Funds Washington Mutual
AWSHX
2.42%
0.70%
3
49.15
$250
2
Dodge & Cox Stock
DODGX
1.20%
0.52%
3
41.48
$2,500
3
Vanguard Windsor II Investor
VWNFX
2.05%
0.38%
3
33.73
$3,000
4
T. Rowe Price Equity Income
PRFDX
1.96%
0.72%
4
18.58
$2,500
5
Eaton Vance Large Cap Value A
EHSTX
1.03%
1.03%
3
16.04
$1,000
6
American Funds American Mutual A
AMRMX
2.77%
0.66%
4
17.13
$250
7
Franklin Mutual Shares A
TESIX
1.66%
1.13%
3
14.97
$1,000
8
MFS Value A
MEIAX
1.43%
0.98%
3
14.89
$1,000
9
Vanguard Value Index
VIVAX
2.51%
0.26%
3
13.15
$3,000
10
Vanguard Windsor
VWNDX
1.48%
0.33%
3
12.6
$3,000
11
T. Rowe Price Value
TRVLX
1.37%
0.89%
3
10.8
$2,500
12
BlackRock Equity Dividend Inv A
MDDVX
1.85%
1.04%
5
10.15
$1,000
Updated 1/1/2011
American Funds Mutual Washington Fund Holding
American Funds Mutual Washington Fund Holding | Source

1. American Funds Washington Mutual

American Funds Washington Mutual fund seeks income and opportunity for growth of capital consistent with sound common stock investing. This American Funds invests mostly in established companies stocks that are listed on or meet the financial listing requirements of the New York Stock Exchange (NYSE) and have a strong record of earnings and dividends. It may invest small part of asset in foreign stocks (<5%). The fund is managed by James K. Dunton since 1978 with various fund portfolio counselors. The expense ratio is 0.70% per year. The fund has returned 1.98% over the past year and -0.31% over the past 5 years based on load adjusted return. As typical Class A fund, there is a Front End Sales Load of 5.75% and a 12b1 fee of 0.23% for this actively managed fund. You will only need $250 of initial funding to invest in this fund.

This fund is also offered in most IRA retirement account, 401K account, and 529 college saving educational accounts. Some asset classes of fund have lower expense ratio fee, and no front end sales charge fee. Other tickers of American Funds Washington Mutual fund are: WSBDX, WSBCX, WSBFX, WMFFX, CWMAX, CWMBX, CWMCX, CWMEX, CWMFX, RWMAX, RWMBX, RWMCX, RWMEX, RWMFX, and RWMGX. For instance, The R6 class (Ticker: RWMGX) has only 0.37% expense ratio and no front end sales load. The expense ratio of different classes of fund can range from 0.37% to 1.50%.

As discussed before, the primary fund portfolio consists of large value stocks. The top 5 major sectors of fund as January 2011 are Oil & Gas energy, Pharmaceuticals, Aerospace & Defense, Diversified telecommunication services, and Commercial Banks. Top 10 largest equity holdings for this fund include Chevron, Merck, Verizon, Royal Dutch Shell, McDonald’s, AT&T, Coca-Cola, Home Depot, Wells Fargo, and United Technologies.


2. Dodge & Cox Stock

Dodge & Cox Stock fund objective is to provide long term capital growth and income. The fund invests mostly in a broadly diversified portfolio of common stocks. It may invest majority of total assets (>80%) in domestic common stocks or foreign issuers included in the S&P 500. %). The fund lead manager is John R. Gunn since 1977. The expense ratio is 0.52% per year. The fund has returned 7.68% over the past year and 5.46% over the past decade. There is no Front End Sales Load and no 12b1 fee for this actively managed fund. You will need $2,500 of initial funding to invest in this fund.

As of January 2011, the top 5 major sectors of fund are Information Technology, Health Care, consumer Discretionary, Financials and Energy. Top 10 largest equity holdings for this fund include Hewlett Packard Co (HP), Comcast Corp, Wells Fargo & Co, Schlumberger Ltd, General Electric Co, Capital One Financial Corp, Novartis AG, Merck & Co, Motorola Inc, and Occidental Petroleum Corp.


Vanguard Windsor II Holding
Vanguard Windsor II Holding

3. Vanguard Windsor II

Vanguard Windsor II fund investment seeks long term capital appreciation and to provide income. The fund invests mainly in mid and large capitalization undervalued companies stocks. Undervalued stocks are out of favor with investors stocks trading at prices that are below average in some performance measurement such as earnings and book value. These undervalued stocks also have higher dividend yield. This Vanguard fund lead manager is James P. Barrow since 1985. The expense ratio is 0.38% per year for this actively managed fund. The fund has returned 4.77% over the past year and 0.18% over the past 5 years. There is no Front End Sales Load and no 12b1 fee for this actively managed Vanguard fund. You will need $3,000 of initial funding to invest in this fund. If you are interested in lower expense, there is an admiral shares mutual fund.

As of January 2011, the top 5 major sectors of fund are Financials, Information Technology, Health Care, Industrials, and Energy. Top 10 largest equity holdings for this fund include ConocoPhillips, International Business Machines Corp, Wells Fargo & Co, JPMorgan Chase & Co, Microsoft Corp, Pfizer Inc, Philip Morris International Inc, Occidental Petroleum Corp, Raytheon Co and PNC Financial Services Group Inc.


T Rowe Price Equity Income Holding
T Rowe Price Equity Income Holding

4. T. Rowe Price Equity Income

The T. Rowe Price Equity Income fund seeks to provide high dividend income and long term capital growth. This T Rowe Price Equity Income fund will invest most of its assets (>80%) in common stocks, with 65% in the common stocks of well-established companies paying above average dividends. The fund is managed by Brian C. Rogers since 1985. The expense ratio is 0.72% per year for this actively managed fund. The fund has returned -5.21% over the past 5 years and 3.97% over the past 10 years. There is no Front End Sales Load and no 12b1 fee for this actively managed T Rowe Price fund. You will need $2,500 of initial funding to invest in this fund. This fund also has 4 stars rating from Morningstar.

As of January 2011, the top 5 major sectors diversification of fund are Financials, Consumer Discretionary, Energy, Industrials & Business Services, and Utilities. Top 10 largest equity holdings for this fund include AT&T, American Express, Bank of America, Chevron, Exxon Mobil, General Electric, Home Depot, JPMorgan Chase, Royal Dutch Shell, and Wells Fargo & Co.


5. Eaton Vance Large Cap Value

Eaton Vance Large Cap Value fund investment objective is to provide total return. The fund normally invests mostly in value stocks of large cap companies which are dividend-paying stocks, convertible debt securities, and real estate investment trusts for income. The fund is managed by Michael R. Mach since 2000. The expense ratio is 1.03% per year for this actively managed fund. As typical Class A fund, there is a Front End Sales Load of 5.75% and a 12b1 fee of 0.25% for this Eaton Vance actively managed fund. The fund has returned -2.44% over the past year and 3.50% over the past 10 years based on load adjusted return. You will need $1,000 of initial funding to invest in this fund. This fund also has 3 stars rating from Morningstar.

This fund is also offered in most IRA retirement account (ROTH IRA or Traditional IRA), 401K retirement account, and 529 college saving educational accounts. Some asset classes of fund have lower expense ratio fee, and no front end sales charge fee. Other tickers of Eaton Vance Large Cap Value fund are: EMSTX, ECSTX, ERSTX, and EILVX. For instance, the Eaton Vance I class (Ticker: EILVX) has only 0.78% expense ratio and no front end sales load. The expense ratio of different classes of fund can range from 0.78% to 1.78%.

As of January 2011, the top 5 major sectors diversification of fund are Financials, Energy, Health Care, Industrials, and Consumer Staples. Top 10 largest equity holdings for this fund include Wells Fargo & Co, ConocoPhillips, Occidental Petroleum Corp, JPMorgan Chase & Co, Apache Corp, Pfizer Inc, Wal-Mart Stores Inc, Johnson & Johnson, PNC Financial Services Group, and Nestle S.A.


6. American Funds American Mutual

American Funds American Mutual Fund seeks to provide current income, capital growth and principal conservation. The fund invests mostly in common stocks of companies that are likely to participate in the growth of the American economy and have sustainable dividends. The fund is managed by James K. Dunton since 1971 with various fund portfolio counselors. The expense ratio is 0.66% per year. The fund has returned 2.50% over the past year and 1.18% over the past 5 years based on load adjusted return. As typical Class A fund, there is a Front End Sales Load of 5.75% and a 12b1 fee of 0.23% for this actively managed fund. You will only need $250 of initial funding to invest in this fund.

This fund is also offered in most IRA retirement account, 401K account, and 529 college saving educational accounts. Some asset classes of fund have lower expense ratio fee, and no front end sales charge fee. Other tickers of American Funds American Mutual Fund are: AMFBX, AMFCX, AMFFX, AMRFX, CMLAX, CMLBX, CMLCX, CMLEX, CMLFX, RMFAX, RMFBX, RMFCX, RMFEX, RMFFX, and RMFGX. For instance, The R6 class (Ticker: RMFGX) has only 0.36% expense ratio and no front end sales load. The expense ratio of different classes of fund can range from 0.36% to 1.47%.

As discussed before, the primary fund portfolio consists of large value stocks. The top 5 major sectors of fund as January 2011 are Oil & Gas energy, Pharmaceuticals, Semiconductor & semiconductor equipment, Aerospace & Defense, and Electric Utilities. Top 10 largest equity holdings for this fund include AT&T, Merck, Microsoft, IBM, United Technologies, CenturyLink, Home Depot, Royal Dutch Shell, Kraft Foods, and ConocoPhillips.


7. Franklin Mutual Shares Fund

Franklin Mutual Shares A fund investment seeks capital appreciation and provides income. Franklin Mutual Shares A fund is part of Franklin Templeton fund family. The fund usually invests primarily in under value large cap equity securities of U.S. and foreign companies based on their intrinsic value. The fund lead manager is Peter F. Langerman since 2005. The expense ratio is 1.13% per year for this actively managed fund. The fund has returned 2.50% over the past year and 1.18% over the past 5 years based on load adjusted return. As typical Class A fund, there is a Front End Sales Load of 5.75% and a 12b1 fee of 0.30% for this actively managed fund. To invest in Franklin Mutual Shares fund, you will need $1,000 initial investment. If you are interested in lower fees, please check other Franklin Mutual shares classes either for retirement account or other institutional accounts.

As of January 2011, the top 5 major sectors of fund are Food, Beverage & Tobacco, Energy, Health Care Equipment & Services, Media, and Food & Staples Retailing. Top 10 largest equity holdings for this fund include CVS Caremark Corp, British American Tobacco PLC, Kraft Foods Inc, Microsoft Corp, UnitedHealth Group Inc, Nestle SA, White Mountains Insurance Group Inc, Imperial Tobacco Group Plc, Altria Group Inc, and Pfizer Inc.


MFS Value Fund Holding
MFS Value Fund Holding

8. MFS Value

MFS Value fund seeks capital appreciation. The fund invests primarily in the stock of companies that are undervalued compared to their perceived worth. The fund lead manager is Steven R. Gorham since 2002. The expense ratio is 0.98% per year for this actively managed fund. The fund has returned -7.60% over the past 3 years and 2.85% over the past 10 years based on load adjusted return. As typical Class A fund, there is a Front End Sales Load of 5.75% and a 12b1 fee of 0.25% for this actively managed fund. To invest in MFS Value fund, you will need $1,000 initial investment. It also has a yield of 1.43%. If you are interested in lower fees, please check other MFS Value fund classes either for retirement account or other institutional accounts.

As of January 2011, the top 5 largest equity sectors of fund are Financial Services, Health Care, Consumer Staples, Industrial Goods & Services, and Energy. Top 10 largest equity holdings for this fund include Lockheed Martin Corp, Philip Morris International Inc, Goldman Sachs Group Inc, AT&T Inc, JPMorgan Chase & Co, Bank of New York Mellon Corp, Johnson & Johnson, MetLife Inc, Accenture Plc and Chevron Corp.


Vanguard Value Index Fund Holding
Vanguard Value Index Fund Holding

9. Vanguard Value Index

This is one of the passively managed large value mutual fund in this list from Vanguard Investment. Vanguard Value Index fund seeks to track the performance of MSCI US Prime Market Value Index that measures the investment return of large capitalization value stocks. This Vanguard fund lead manager is Gerard C. O'Reilly since 1994. The expense ratio is 0.26% per year for this passively managed fund and is the lowest for large value equity fund. The fund has returned 7.20% over the past year and 1.73% over the past decade. There is no Front End Sales Load and no 12b1 fee for this Vanguard Value Index fund. You will need $3,000 of initial funding to invest in this fund. If you are interested in lower expense, there is an admiral shares mutual fund or ETF.

As of January 2011, the top 5 major sectors of fund are Financials, Energy, Health Care, Industrials, and Consumer Staples. Top 10 largest equity holdings for this fund include Exxon Mobil Corp, General Electric Co, Chevron Corp, Procter & Gamble Co, AT&T Inc, Johnson & Johnson, JPMorgan Chase & Co, Wells Fargo & Co, Pfizer Inc, and Bank of America Corp.


10. Vanguard Windsor

Vanguard Windsor fund investment seeks long term capital appreciation and to provide income. The fund invests mainly in mid and large capitalization undervalued companies stocks. This Vanguard fund lead manager is James N. Mordy since 2008. The expense ratio is 0.33% per year for this actively managed fund. The fund has returned 9.98% over the past year and -0.23% over the past 5 years. There is no Front End Sales Load and no 12b1 fee for this actively managed Vanguard fund. You will need $3,000 of initial funding to invest in this fund. If you are interested in lower expense, there is an admiral shares mutual fund.

As of January 2011, the top 5 major sectors of fund are Financials, Consumer Discretionary, Information Technology, Health Care, Energy, and Industrials. Top 10 largest equity holdings for this fund which accounts for 20.90% of assets include Wells Fargo & Co, Pfizer Inc, Comcast Corp, JPMorgan Chase & Co, ACE Ltd, Arrow Electronics Inc, Delta Air Lines Inc, Ameriprise Financial Inc, Virgin Media Inc, and Buck Holdings LP Private Placement.


Best Large Value Fund Performance

(click column header to sort results)
No  
Mutual Funds Description  
Ticker  
1 Yr  
3 Yr  
5 Yr  
10 Yr  
1
American Funds Washington Mutual
AWSHX
1.98%
-7.50%
-0.31%
2.54%
2
Dodge & Cox Stock
DODGX
7.68%
-8.58%
-1.12%
5.46%
3
Vanguard Windsor II Investor
VWNFX
4.77%
-6.85%
0.18%
3.59%
4
T. Rowe Price Equity Income
PRFDX
8.40%
-5.21%
1.12%
3.97%
5
Eaton Vance Large-Cap Value A
EHSTX
-2.44%
-9.42%
-0.57%
3.50%
6
American Funds American Mutual A
AMRMX
2.50%
-4.41%
1.18%
4.10%
7
Franklin Mutual Shares A
TESIX
2.84%
-8.29%
-0.52%
4.07%
8
MFS Value A
MEIAX
-0.04%
-7.61%
0.69%
2.85%
9
Vanguard Value Index
VIVAX
7.20%
-7.20%
-0.03%
1.73%
10
Vanguard Windsor
VWNDX
9.98%
-6.39%
-0.23%
3.62%
11
T. Rowe Price Value
TRVLX
8.51%
-4.74%
1.41%
4.33%
12
BlackRock Equity Dividend Inv A
MDDVX
1.60%
-6.33%
2.54%
4.97%
Updated: 1/1/2011

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