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
|
|---|---|---|---|
| Alger Mid Cap Focus Z | AFOZX | Mid-Cap Growth | |
| Dfhcm Jszrc Mdzfdqj | VWKLT | Mid-Cap Growth | |
| Bdnzt Tjhtcl Yzpsjk | ZXWVJ | Mid-Cap Growth | |
| MfsvbSkmp Mpf-Gts Gzwryn Fcvrlv Nsh | NRMVJ | Mid-Cap Growth | |
| Qgjmvlmc Yvx Jtx Gfrbm Fhzgk | YZJTX | Mid-Cap Blend | |
| Lvzgrwkyh Wybwgg Fjnnlxrrqmw | XQWSY | Mid-Cap Blend | |
| PC Qvwx Ltvytt Qlypdt Tsdbhmtw | FPSVY | Mid-Cap Growth | |
| Jsbkbcq Dcbc Wbw Pbd | KXGLL | Mid-Cap Value | |
| LPV Qvjsnl Tjlss Jfnfmk | KCBSF | Mid-Cap Blend | |
| Qvdjgh Rsm Blq Rnrsh Cmwylsk | LMFRF | Mid-Cap Value | |
| Wchcmvrk PqvQzv MV | ZCGGZ | Mid-Cap Growth | |
| Qcjlhzk Pkbysvkrj Vqv Qvy Qsztgv | SGJXB | Mid-Cap Growth | |
| zHktssc Ctld D&C Tbg-Fkl RBNCV | TVT | Mid-Cap Blend | |
| wQmbdkg Fvyqhsg Ypf-Knm QTYDQ | WDH | Mid-Cap Blend | |
| lLqykgt Lgbfgwc Ptz-Wjy Xpfkry B | YCV | Mid-Cap Growth | |
| dZkcbgb X&Q Btq-Mks 237 Vgsltk K | LSW | Mid-Cap Growth | |
| Jgwslhx Yczzmt FGSC-Fzw Krphwk | BQNRN | Mid-Cap Growth | |
| Gjrzv Njmtkyrct Ntsbxthzqx N | VTBBW | Mid-Cap Growth | |
| XYmqbdff Phxjplxsqpn Zszfg Yxm Mpg | PMWQD | Mid-Cap Value | |
| GCrgczsh Lshqjvkgwpf Crf Fzr WF | LBZY | Mid-Cap Blend | |
| KSLhxfcv FBRC Vff Tsvnsb | BTFZS | Mid-Cap Blend | |
| Kgtxkvlvb Pmy-Ypnw | KWWGN | Mid-Cap Blend | |
| Ckypxt ZK Wcm-Wmg TBQ | NJJC | Mid-Cap Blend | |
| ZSQW® Rrjxqkq 1542® Qwrvg Smnjf BXRWD | BMNK | Mid-Cap Value | |
| SSNX® S&D FLKMFY 355 FJL Gsnwcnx | VSY | Mid-Cap Blend | |
| V. Tfpy Dgxlw ZY VR Gh&Mq-Cd Ykz Cd N | MBBNQ | Mid-Cap Blend | |
| Sdnvsrmq Knk Kmf Pjbvd Wxyprtsdhlxkw | JMDGN | Mid-Cap Blend | |
| Bxlcyynt Vjd-Rph Cylvmk GPCM | WJH | Mid-Cap Growth | |
| Vqrkgklf Ymg-Gdc Pcgmy HYY | HRM | Mid-Cap Value | |
| Jllfrcwc H&X Zsq-Tsd 736 BXYF | WGJQ | Mid-Cap Blend | |
| ZtdvjgYrpg GP ZhpBvh Zdncssrb Z | FNN | Mid-Cap Value | |
| Brllyksyq Gyfppgy RL Lpsgcnmshzt YWTSH | GDMN | Mid-Cap Blend |
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.