Large-blend stock funds are a crucial component of a well-diversified portfolio. Investors have increasingly turned to passively managed S&P 500 funds for their large-blend investments, and this strategy has proven to be successful.
S&P 500 ETFs have been some of the top performers in the large-blend category over the last one-, three-, and five-year periods. In the last 12 months, large-blend funds have seen an average increase of 17.4%, compared to the U.S. stock market’s 20.5% gain as measured by the Morningstar US Market Index. Over three years, the category has outperformed the market by 0.3 percentage points per year.
Among the standout performers in the category are ETF offerings from iShares and Vanguard, known for their heavy exposure to mega-cap stocks and low fees.
What Are Large-Blend Funds?
Large-blend funds are considered to be representative of the U.S. stock market. These portfolios do not focus on growth or value specifically, but instead invest across various U.S. industries. Due to their broad exposure, large-blend funds tend to perform similarly to the S&P 500 Index.
Screening for the Top-Performing Large-Blend ETFs
To identify the best-performing ETFs in this category, we looked for those with top returns across multiple time frames. We filtered for ETFs that ranked in the top 33% of the category over the past one-, three-, and five-year periods, with Morningstar Medalist Ratings of Gold, Silver, or Bronze. Funds with less than $100 million in assets and minimal analyst input on their ratings were excluded.
Top-Performing Large-Blend ETFs
Among the top performers in the large-blend category are:
– Invesco S&P 500 Quality ETF
– iShares Core S&P 500 ETF
– iShares MSCI KLD 400 Social ETF
– iShares MSCI USA Quality Factor ETF
– SPDR Portfolio S&P 500 ETF
– SPDR S&P 500 ETF Trust
– Vanguard Mega Cap ETF
– Vanguard S&P 500 ETF
DailyBubble’s Perspective
Large-blend funds, particularly those tracking the S&P 500, have shown strong performance over the years. These funds offer investors exposure to a diversified portfolio of U.S. large-cap stocks, with the potential for long-term growth. As such, they remain a popular choice among investors looking for stability and solid returns in their portfolios.