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3 Great Value Funds for 2024

Find the right fund to suit your portfolio.

3 Great Value Funds for 2024

Russel Kinnel: Large value has been a sleepy corner of the market as we all are watching Nvidia NVDA and the rest of the “Magnificent Seven,” but when growth stocks crater, you’ll be glad you had some value exposure. I’ve chosen three of our favorite value funds for three different goals. I’ll work from the left side of the style box with the most value-laden fund to the value/blend border.

3 Great Value Funds for 2024

  1. Vanguard High Dividend Yield Index VHYAX
  2. Dodge & Cox Stock DODGX
  3. Oakmark Select OAKLX

If you want some ballast for a growth-heavy portfolio, look for an equity-income fund. Vanguard High Dividend Yield Index Fund tilts toward higher-yielding stocks without leaning on the very highest-yielding names, which are pretty risky. Dividend payers stay squarely on the value side of the style box so you can be confident this fund will give you steady value exposure. This Gold-rated fund’s Admiral shares charge just 8 basis points.

For a fund that lands right in the middle of the universe, I like Gold-rated Dodge & Cox Stock. It’s an excellent stock-picking vehicle with a deep bench of managers and analysts. They look for companies with strong management teams, competitive advantages, and shares priced at modest valuations. Over the long haul, results have been strong.

Finally, I have a focused fund that straddles the value/blend border. If your portfolio is already well diversified and you just want a great stock-picker, you’ll like Oakmark Select. It’s a focused fund looking for stocks trading at a discount of at least 30% to their estimate. Because they are open to giving growth companies credit for potential growth and moats, the portfolio has a mix of value and growth stocks. At the moment, the fund owns a boatload of financials, but also a smattering of growth stocks like Alphabet GOOGL, the parent company of Google. I own this fund in my 401(k).

Watch Gold-Rated Funds With Women Managers for more from Russel Kinnel.

The author or authors own shares in one or more securities mentioned in this article. Find out about Morningstar’s editorial policies.

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About the Author

Russel Kinnel

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Russel Kinnel is director of ratings, manager research, for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He heads the North American Medalist Rating Committee, which vets the Morningstar Medalist Rating™ for funds. He is the editor of Morningstar FundInvestor, a monthly newsletter, and has published a number of prominent studies of the fund industry covering subjects such as manager investment, expenses, and investor returns.

Since joining Morningstar in 1994, Kinnel has analyzed virtually every type of fund and has covered the most prominent fund families, including Fidelity, T. Rowe Price, and Vanguard. He has led studies on the predictive power of fund data and helped develop the Morningstar Rating for funds and the Morningstar Style Box methodology. He was co-author of the company's first book, Morningstar Guide to Mutual Funds: 5-Star Strategies for Success (Wiley, 2003), and was author of the book Fund Spy: Morningstar's Inside Secrets to Selecting Mutual Funds That Outperform, published in 2009.

Kinnel holds a bachelor's degree in economics and journalism from the University of Wisconsin.

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