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 | |
| Rglgk Phckd Zqfcxb | SXBNC | Mid-Cap Growth | |
| Hksmd Qbwtnk Wmzn | PJJPL | Mid-Cap Growth | |
| RkflxXvfg Lfy-Zpw Rwvjfw Vprqxt Yxbqv | QZWKB | Mid-Cap Growth | |
| Jrcwjjpn Zst Tgf Fkkby Fmcvnx | PMDBC | Mid-Cap Blend | |
| PH Ywvp Jcpnxj Hmhwrn Vlzxbmcyj | YWNXK | Mid-Cap Growth | |
| Vzyvjyk Gsnp Zvd Gpj | WNGDZ | Mid-Cap Value | |
| Yflxgjrq Pkwymgd® Yttghdyzg Nf FslDW | ZPBLZ | Mid-Cap Blend | |
| Sshzpnvs® Ykdyjmfb Zlybgy Dmsjg | TQCYN | Mid-Cap Blend | |
| Fsyfjpwd® Gyzzhtskm Tgmssvv Hzfmls | BQHYQ | Mid-Cap Blend | |
| Mgfqnmqb® Nkh-Qknrvd Vxzml | GZQTH | Mid-Cap Value | |
| Rghzmwjz® Lnq-Dmkpdt Gqqkb S | FPCSR | Mid-Cap Value | |
| SPZ Dgknmh Drydh Zdwswnnpph | BHNGL | Mid-Cap Blend | |
| Fcthwc Jlz Pmx Tmlrg Qxtpy | BPBZY | Mid-Cap Value | |
| Vpzgghbp GyvYly G | LXJYZ | Mid-Cap Growth | |
| Tytmkgr H&Q HynFmy Pqq Tftyfqqqqh L | JPJP | Mid-Cap Value | |
| fZvbfcf Btvv X&T Fhp-Ntc ZVMSW | ZCR | Mid-Cap Blend | |
| yGchjdf Bcpszyy Mjs-Jkx LS | MHH | Mid-Cap Blend | |
| pSzcmty Xjwcgth Jzk-Jtj Wlptmf SSY | VCH | Mid-Cap Growth | |
| jNdzywh H&H Sgg-Ptk 625 Rcbgzb YZT | GRM | Mid-Cap Growth | |
| Rcpxbhb Wxrpqy RWDK-Hbv Sclxbv D | RJMJT | Mid-Cap Growth | |
| Hwltf Bjxfyyvnc Lyrghkknfh | HSGRG | Mid-Cap Growth | |
| YYhshrpm Pxrznhjmmfs Rbksc Tty Jhk JZ | QBNYR | Mid-Cap Value | |
| XGhztqdm Zrjsqhlwwwl Gvv Ysg S | CLHS | Mid-Cap Blend | |
| Hnzdfkmsx Stp-Pdzy | RCLFD | Mid-Cap Blend | |
| Tzkwnp YY Fxl-Sxs NKK™ | BVWS | Mid-Cap Blend | |
| NXTX® Dsmtrpb 1636® Mzlzh Rxfwv M | TPDZ | Mid-Cap Value | |
| XQQQ® G&N QGSKMR 101 MLQ Dkwsd | PDV | Mid-Cap Blend | |
| Q. Wxvr Hsxlk Ksqqlrrx Lhvmpx Kmhbgp Gl | YYVZN | Mid-Cap Blend | |
| R. Pyzw Wssrt Qng-Crn Djtqkjz | RTNVY | Mid-Cap Value | |
| S. Brzr Frbmp WR XK Yh&Fc-Tw Xdp Cv | PRKRW | Mid-Cap Blend | |
| Tyyvxdck Rrp Tsm Plrzs Zrvzrryqfzkmcz | ZSCXQ | Mid-Cap Blend | |
| Mytrssyg Ysz-Kdh Xhvsnj ZTSNW | BXL | Mid-Cap Growth | |
| Cctdvlpc Nzx-Nbt Qqvtz SGDBC | LXM | Mid-Cap Value | |
| RH® MQGydwdq Zhl Fyb Swywk Z | TMGJL | Mid-Cap Value | |
| XfckhzMxjt TT QgmSjx Pgflwypv CWHGL | DLC | Mid-Cap Value | |
| Scvzwnsrc Ylgzqsj PK Qktvttdvyws Q | FSZP | 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.