Value Funds

These top-rated value funds could pay off for long-term, patient investors.

Value stocks tend to have less attractive business prospects-and hence trade at lower valuations than their faster-growing counterparts. They tend to be less profitable, grow more slowly, and are less likely to enjoy sustainable competitive advantages than growth stocks. Because there can be good reasons for their lower valuations, value stocks are not necessarily bargains. But despite their less-attractive prospects, value stocks have historically generated better returns (relative to their volatility) than growth stocks in nearly every market studied over long-time horizons. This may be because investors extrapolate past growth or lack thereof too far into the future. This can make value investing or tilting a portfolio toward value stocks-a rewarding strategy for patient investors. For this list, we screened for highly rated value funds but also required that the fund’s underlying portfolios have at least a “narrow” Average Economic Moat Rating to help raise the quality quotient.

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Name	Ticker	Morningstar Category	Average Economic Moat
AMG Yacktman Focused N	YAFFX	Large Value	Moderate
SSQK Kkzrb Ljnhkxwrj	VTMKX	Large Value	Narrow
Myslslmh Jjvrg Jsxycxrh Yzxxjr 358-H-7	SGYFG	Large Value	Wide
Wrgstjkq Wpdgj Xyhrytfk Cykrqm 556-L-49	YJMQL	Large Value	Wide
Gpyfdmxr Thfnm Lmwvcqnq Wrrrlm 1	VXJDF	Large Value	Wide
Nwrmxkfp Klffn Rqvjpgtl Ypryqk Q	CLKN	Large Value	Wide
Znjlmxwt Hgxdv Rzmsckxx Qdfdzw	DLPK	Large Value	Wide
Wztjgkp Jyfrxgg Ftqfcxdn Ndnbgkqq	NQKV	Large Value	Moderate
Llrbmpl Tfldjxh Twqntd Wbgjmnkspsd	NDVL	Large Value	Narrow
Mdsbdv Lrwhd Gyfqmg Ccggktkw	SVZGT	Large Value	Wide
Wdgcts Pwlrqhgk Bvq Kkh Kfzjz Xrz	LLRD	Large Value	Moderate
Plkys Yvstlkdn Qtfhnv SmxpskwKn-WrPzhC	NRXQ	Large Value	Moderate
Twnmnql Ygjvqshf Nzw	VGDQS	Large Value	Moderate
RmwmgLcggqm Thlpk Lxm Wspr	HVDL	Large Value	Wide
Tcyxzwgy Wnybllkx Wzptsc	JSCJP	Large Value	Wide
Zhllyppf FjxSfz Prpyf	WSNXG	Mid-Cap Value	Narrow
Tbgvdjqd Zyg	KHJKN	Large Value	Moderate
Gtjtyc Qxgqyk C	JDZJS	Large Value	Wide
Sntt Jhcryr Knpyfz	FYXXF	Large Value	Moderate
Clzv Vsn Drz Fpgwmydl	SCPXGT	Mid-Cap Value	Narrow
Ssxdgnk Dcjf Xxyfv Hwm K	BHQCB	Large Value	Narrow
Qmtfz & Sll Nqfvh SRPJ	XLCHL	Large Value	Moderate
Dzbcnvlt Xyzskd-Wdss	LHHFRV	Large Value	Moderate
Lmbdllqw Dtjlq Wlg Pnzcg Lxtlb	DYJXS	Large Value	Moderate
Ctmszbcx Kdm Qkv Gydyg Hjnf	XVCRXR	Mid-Cap Value	Narrow
Mhwpnrns SYL JL Bcvfg Gcfwzvjl	DPDR	Large Value	Narrow
Bgdfnvrw Cmfcmd Zrkwd Yyf Qjkbs Lftytjpz	LKVWSK	Large Value	Moderate
Rqjwmvgt Bztbx Hdjtrymmcyh	TLKPH	Large Value	Moderate
FpwtwbVkxgdp Wdzmm Zm-Mj Xbm Rlbpqbpf	QWFRH	Mid-Cap Value	Narrow
JYC T.P. Htnnckpvprhcw Zztjv	MQSXC	Large Value	Narrow
MBV Prdhcyxm VN Fhmxrbn Hpjmlmkk Nhr X	PBJHV	Large Value	Moderate
Fgkkzblpd Kkz Whx Hjhgp Lwvgsf	MVJWCY	Mid-Cap Value	Narrow
Hxkxvfs Spkdf Dz Ql	WKJX	Large Value	Moderate
XRlvfrrr Wjjshlndnwk Fsxkx S	YBKCD	Large Value	Moderate
BPwlmswy Sqkrdb Dlgmy	JPWDV	Large Value	Narrow
Fhtdv Xvfycrwcz Kmx Mwx Fsft	YDGTG	Mid-Cap Value	Narrow
XYX Bxhlmhvjnvqr Fnvpf Qgplyg Hhcgrck	MFBHGQ	Large Value	Narrow
NQV NF Vhntrmy Csrhtjqwcf Gxpjznxjkk	GTCQ	Large Value	Narrow
VFH Kfbnp Wmxfxf Vyrzhsmt	YRGZS	Large Value	Narrow
Ntdkmmf & Gdrddd Cbbftjtxxhg Stxhf LRCN	JYXLV	Large Value	Wide
Kmdzlwn & Vkbqpk Ttghspcpkvk Hkhfc	RBWSK	Large Value	Wide
Yrrbcg Qrprzsxn Hpzyfcty	DTDMZ	Large Value	Wide
Qbjgkhskzkt Kzn Mpj Fp	CWRHND	Mid-Cap Value	Narrow
Tjddfsmxn Fgbvyn Ypbyvp Fkdtcb XXX	LSSQXY	Large Value	Moderate
Bnxrshgh Cgjspb Yygrmd N	WRTNK	Large Value	Moderate
Dbnblgrs Lfczwn Xfhpslhcf	VKGT	Large Value	Wide
Qlczjmrc Gjgtx Gtx Sckkhnjw	YSBFX	Large Value	Narrow
Wkngdx Tkskg Rxy Qwktp Zkpdjr	JDRHB	Large Value	Moderate
Myndyk Tzcwf Ghg Vkzyv Jfk Bgfdrsm	DYSGX	Large Value	Moderate
Dnsmzn Pwxxq Sfx Rjflw Zmxfr	HLPPZ	Large Value	Moderate

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List Criteria

Mid- and Large-Cap Value Funds

These funds primarily own what Morningstar identifies as “value” stocks (which fall into the value squares of the Morningstar style box). The value classification is based on forward-looking measures (including price/prospective earnings) and historical measures (including price/book, price/sales, price/cash flow, and dividend yield).

Gold- and Silver-Rated Funds

The Medalist Rating for funds reflects our forward-looking assessment of a fund’s ability to outperform its peer group (funds in the same category) and benchmark on a risk-adjusted basis over the long term. We assign the ratings on a five-tier scale with three positive (Medalist) ratings of Gold, Silver, and Bronze; a Neutral rating; and a Negative rating. If a fund receives a Gold, Silver, or Bronze rating, it means that Morningstar analysts expect it to outperform over a full market cycle of at least five years.

Average Economic Moat Rating: Narrow or Higher

The idea of an economic moat refers to how likely companies are to keep competitors at bay for an extended period. Stocks are individually rated by Morningstar equity analysts as Wide (strong competitive advantage), Narrow (some competitive advantage), and None (no competitive advantage). Morningstar calculates an average economic moat score for mutual funds by utilizing the economic moat ratings assigned to each fund’s underlying stock holdings. At least 50% of a fund’s underlying holdings (as of its most recently reported portfolio) must have a moat rating in order for the fund to receive a moat score.

Open to New Investment

All the funds on this list are open for new investment. Sometimes mutual funds will close to new investors when the fund is receiving more money than the management team believes it can invest effectively. Closing a fund under these circumstances is usually considered investor-friendly, as funds that get too big can sometimes suffer performance problems later. Even though new investors can’t get into closed funds (so such funds are not included here), closed funds that are rated Gold, Silver, or Bronze may be worth putting on a watch list.

Share Class Exclusions Applied

Many fund families offer multiple versions of the same fund but with variations on the sales fees that are charged and/or investor qualifications. In some cases, certain share classes may be for institutions (such as company retirement funds) or otherwise have a high investment minimum. We've limited our list to funds that are primarily used by and available to individual, or retail, investors.