Sometimes referred to as the market’s sweet spot, mid-cap stocks are positioned in a way that gives them the potential to achieve impressive risk-adjusted returns. Mid-cap (or medium-sized) companies are usually not as dependent on a single product as their smaller-cap peers can be, meaning that mid-caps’ revenue and cash flow are often more consistent and the stock price is less volatile. But mid-caps are also not yet hampered by their size, either. (Once a company reaches the mature large- or giant-cap stage, its growth potential typically slows down). For this list, we screened for Gold- and Silver-rated no-load mid-cap funds that are open to new investment. Total market indexes hold about 20% in mid-cap stocks. You may already have similar exposure in your own portfolio. If not, and you want mid-caps to be well-represented, the picks below are a great place to start.
Mid-Cap Funds
Name
|
Ticker
|
Morningstar Category
|
Morningstar Analyst Rating
|
|---|---|---|---|
| Artisan Mid Cap Investor | ARTMX | Mid-Cap Growth | |
| GcbxwNqny Hxm-Vhb Gbqljg Ykkclp Bdwprst | MSBPG | Mid-Cap Growth | |
| Xcmnshsz Hkq Xny Srswg Crmk | YRBFR | Mid-Cap Blend | |
| NR Shhr Nygsky Drcmrq Gshgyrnl | HRRGY | Mid-Cap Growth | |
| Mpdvnwf Sqtx Xjs Rgy | NBVGH | Mid-Cap Value | |
| Jblwycht Zhlqgqs® Jlszzqjbc Np Xrv | GGNYP | Mid-Cap Blend | |
| Vdlnynjh® Ftbdkvrt Tfpyvj Zxvjnj | XJPRZ | Mid-Cap Blend | |
| Sxbyqybf® Gllfdlhxd Fqktwyz Cbnh | NKMRS | Mid-Cap Blend | |
| Kxzrnbkx® Pqf-Nrwdfj Xjjcpbh | PYBPN | Mid-Cap Value | |
| Qhkdqtwj® Gqj-Syhtkh Fhwvt | XKJGK | Mid-Cap Value | |
| GRF Rsmzwp Rzljw Fvdbspqsps | RPDGL | Mid-Cap Blend | |
| Brnrxf Qrs Hcv Xfttc Cynvv | ZCTZN | Mid-Cap Value | |
| Xtlzrhjg TdmNqh SYP | XDSHY | Mid-Cap Growth | |
| yDkwhnx Chbw N&B Yyv-Dgp VG | ZNN | Mid-Cap Blend | |
| wFlcpsx Gkgzhfy Zxl-Xhd X | PRT | Mid-Cap Blend | |
| sHgtkrq Zfycqfb Wtb-Fdk Ccyzmf NH | HZD | Mid-Cap Growth | |
| zFmvxpf Btzmhqq Jxj-Scs Rrlyb HB | HGQ | Mid-Cap Value | |
| kQzphcy N&G Ynp-Hnp 382 Zddvpn WLBC | HGY | Mid-Cap Growth | |
| pSkbydm Y&B Gbv-Nbw 348 Nvnjq Y | SYW | Mid-Cap Value | |
| SSpddlph Ysflpbpdgjw Lbqks Jkj Xll RS | FSVXM | Mid-Cap Value | |
| Hrghrt Sysbvjr Kgbj Zbnbxmqww MR | KJQLL | Mid-Cap Growth | |
| Xbtjxkmqx Vdl-Zmzbg | NMYNB | Mid-Cap Blend | |
| Rnrpmq JG Vsw-Qgs NYN™ | ZZXV | Mid-Cap Blend | |
| PYDR® Z&Z ZBRMSY 413 RGW Dcftx | DHF | Mid-Cap Blend | |
| C. Tctw Kdsvd Ktc-Gnw Wpmtp | LGZWR | Mid-Cap Value | |
| Y. Thhr Jgfmy JV VD Sb&Gg-Gj Sqj Bq | WWJZZ | Mid-Cap Blend | |
| Gbjxzgph Wdj Rkb Wpndx Sqvxflyqkyg | QPMRK | Mid-Cap Blend | |
| Mgkydvsh Mcd-Jxn Vtjzzv BCXM | CVQ | Mid-Cap Growth | |
| Gvkhsyxz Zxm-Sfq Fgwqw BLFBF | DSY | Mid-Cap Value | |
| YC® KDBxltvq Cln Shl Yrjtw FW | RXRWW | Mid-Cap Value | |
| HqbpdhYnxg MR QnvJrd Btlxtmsg TGW | PTJ | Mid-Cap Value |
List Criteria
Mid-Cap U.S. Funds
Rather than a fixed number of “large cap” or “mid-cap” stocks, Morningstar uses a flexible categorization system that isn’t adversely affected by overall movements in the market. Large-cap stocks are defined as the group that accounts for the top 70% of the capitalization of each geographic area; mid-cap stocks-represent the next 20%. Small-cap represent the balance.
Gold- or Silver-Rated Funds
The Analyst Rating for Funds is based on our fund analysts’ conviction in 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. 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.
No-Load Funds
This list includes only no-load funds. “No load” refers to a mutual fund that does not charge a fee (known as a load) for buying or selling its shares; the investor typically buys no-load funds directly from a fund company or through a fund supermarket. Load funds, on the other hand, are sold by an advisor or broker and charge a percentage fee at purchase or sale of the shares, which is meant to be compensation for the planner’s investment-selection advice. (Note: Not all advisors sell load funds. Many are compensated via a flat fee or a percentage of all assets under management.) Whether a fund charges a load or not isn’t a reflection of its underlying quality. Many load funds are also Medalists, and some load funds are available without a load through 401(k) or other retirement plans. But we’re including only no-load funds here, since this list is designed to help investors who are primarily doing their own fund-picking.
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.
Distinct Portfolios Only
Many fund families offer multiple versions of the same fund but with variations on the sales fees that are charged and/or investor qualifications. Screening for “distinct portfolios only” removes all but one of these options to avoid having several share classes of the same offering cluttering the list. Morningstar normally designates the oldest share class as the distinct portfolio. In some cases, this share class may be for institutions (such as company retirement funds) or otherwise have a high investment minimum. In those cases, investors may want to consider an “investor” share class of the same fund, though the fund expenses may be higher for those share classes.