3 Great Value Funds
Our analysts discuss solid ideas for this type of exposure.
Susan Dziubinski: Hi, I'm Susan Dziubinski for Morningstar.com. There may be good reason for some investors to explore value-oriented mutual funds and ETFs today. For instance, if you've been using discrete funds for your growth and value exposures, you may find that your once-balanced style portfolio maybe light on value given growth's extended run. Or you may be among those who think value stocks are finally going to have their day, and you'd like to tilt your portfolio toward that style. Here's a look at three highly rated value funds.
Alec Lucas: American Funds American Mutual is a very reliable, large-cap-oriented fund that focuses on dividend-paying companies with sound balance sheets. Each of the fund's seven managers, who each manage an independent sleeve of the fund, has to meet an above-market pre-expense yield target in managing their sleeve of the portfolio. Otherwise, the managers are free to invest according to their own investment style. Splitting up the portfolio in this way and dividing among those seven managers and their two analyst teams minimizes key-person risk in the fund. The fund has been very reliable since its 1950 inception. This is the kind of fund you can own when you're worried about market valuations and markets plunging, because this has proven the ability to preserve capital better than the S&P 500.
Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.