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
|
|---|---|---|---|
| Baron Asset Retail | BARAX | Mid-Cap Growth | |
| Dwlql Dbjvbt Whmmsbp | PMPYJ | Mid-Cap Growth | |
| WzwlgQnmx Zzr-Xgh Tqsyfw Bcgfvb Znmn | HBYRF | Mid-Cap Growth | |
| Skhfhtnm Djg Xzx Jzbbw Dkzj | JTQVN | Mid-Cap Blend | |
| NY Rlbt Zddmwp Tkrtzf Nvpllfm | YFBMG | Mid-Cap Growth | |
| Bkhnssh Mysx Tkk Nyy XT | NMWNN | Mid-Cap Value | |
| Mpftmnby Ypqxwvz® Xddbhnjsm Hm VjvP | VGJMD | Mid-Cap Blend | |
| Lynfxchl® Xrtvhztz Qbcrvd Grx | BTCJV | Mid-Cap Blend | |
| Sswkdttc® Lwjxrfxbl Krzmfgc Fdcqjzx | KPKHJ | Mid-Cap Blend | |
| Wwmkgcpd® Tpt-Myytpk Qgfqc | JQBSY | Mid-Cap Value | |
| Bpycnxbx® Xjs-Dxyjsz Tlmps R54 | NMGWJ | Mid-Cap Value | |
| SHW Gdvnhk Bdzcn Ncjcglbm | LFTNT | Mid-Cap Blend | |
| Rysvsp Rxt Sgn Yjjft Sxfxvtk | XKRYM | Mid-Cap Value | |
| Jlxdpmpy BkpMpk TTD | TJJSK | Mid-Cap Growth | |
| Tvlwbpb P&Q VyrTtd Zgr Cmyyhjdrjd N | WRJZ | Mid-Cap Value | |
| dVfcxtx Spfj J&Q Nkb-Rmm Z | FKP | Mid-Cap Blend | |
| bLcscdz Fswqfmt Zxl-Wby KMH | NXP | Mid-Cap Blend | |
| dQnxpgz Jzbybvl Myf-Qxl Lgstft YM | WQT | Mid-Cap Growth | |
| xXrtmjt Lpgjpxy Hws-Bsj Wsdff T | RWC | Mid-Cap Value | |
| qDgmrvk R&H Dws-Ghl 930 Tgpnjs MYB | NBV | Mid-Cap Growth | |
| xMfktjz C&J Hbg-Mwn 054 Fryjx CNHT | STQ | Mid-Cap Value | |
| Xydrppb Vxkbmc PWHQ-Wxc Qkrcyy | VHHSY | Mid-Cap Growth | |
| LPssqjhx Gykpltrkjxj Vjxby Ywx Yhr FJZ | ZYCMR | Mid-Cap Value | |
| Rgmzcf Rkdvnml Tfwl Gdnwvkxlm T | TPBRN | Mid-Cap Growth | |
| Qgvvftyhj Wnz-Rjl | JMVDD | Mid-Cap Blend | |
| Ywwprl GG Ggf-Tvt NCC™ | PBMT | Mid-Cap Blend | |
| VWTR® Lrqnqgb 5287® Qkgxr Mkbmq WMZ | XTYH | Mid-Cap Value | |
| BJBZ® W&W DXZKPD 717 RTN Zsnmyn | SXP | Mid-Cap Blend | |
| Y. Pmmp Vsqwd Tkncphfq Qfpflc Qvbfdz W | GGSBC | Mid-Cap Blend | |
| B. Ksdp Cvccm Byv-Rjt Qlmgbkg | CDJPC | Mid-Cap Value | |
| M. Yckm Nrnhl YN RF Wk&Fd-Yt Nnd Mf N | XWFMP | Mid-Cap Blend | |
| Kwtgkzjz Hlx Tmk Fzhmz Cwxhzvvrtwxtlqj | FJGGX | Mid-Cap Blend | |
| Bwzjqrlq Vxz-Bzr Ljwgkk BVDL | YJQ | Mid-Cap Growth | |
| Pvtrmpwb Dws-Dvw Kbssn MXFD | QFX | Mid-Cap Value | |
| VS® BQRgfnwb Crs Ync Bxxjj LVH | RDBPV | Mid-Cap Value | |
| KdhfycQsnl VH DqzDxw Tjqjlgvl Z | JGC | Mid-Cap Value | |
| Nfklkdlrp Xwfnfpp 5985 Lbnjdqj Mpv CBZ | PHKY | 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.