In recent years, investors in large-value stock funds have experienced a mix of highs and lows, with some funds consistently outperforming their category. Funds like Oakmark OANMX, Oakmark Select OANLX, and Artisan Value APHLX have stood out for their strong performance over the one-, three-, and five-year periods. Companies like Fidelity Investments, Vanguard, and Dodge & Cox have also produced top-performing funds in this space.
Large-value funds have not always been the top performers compared to large-blend and large-growth funds, but they did fare better during the 2022 bear market. However, in 2023, growth stocks, particularly in the technology sector, took the lead once again, causing large-value funds to lag behind.
While large-value funds underperformed the overall stock market in 2023, they did show relatively better performance over a three-year period, outperforming the market by 0.84 percentage points per year. However, over a five-year period, large value funds underperformed the market by 3.81 percentage points per year.
Large-value funds typically invest in the stocks of large U.S. companies that are considered undervalued or have slower growth compared to other large-cap stocks. These funds focus on stocks in the top 70% of the U.S. equity market in terms of market capitalization, looking for low valuations and slow growth indicators.
To identify the top-performing large-value funds, we screened for funds that ranked in the top 25% of the category over the past one-, three-, and five-year periods. This screening process led us to 11 funds, including both index funds and actively managed funds.
In DailyBubble’s opinion, large-value funds offer investors the opportunity to access undervalued companies with growth potential. While these funds may not always be the top performers, they can provide diversification and potential long-term growth opportunities for investors. It’s important for investors to carefully consider their investment goals and risk tolerance when choosing large-value funds for their portfolios.