8 Top-Performing Large-Value Funds

Value investing has a proven long-term track record, but can be difficult to execute well. These funds are the best-rated options, according to Morningstar analysts. We looked for those with the best returns over the last one-, three-, and five-year periods. Eight made it through the screen.

Large-Value Funds Performance

• American Funds Washington Mutual Investors Fund RWMGX
• BNY Mellon Dynamic Value Fund DRGYX
• Fidelity High Dividend ETF FDVV
• Invesco Comstock Fund ICSFX
• Invesco RAFI US 1000 ETF PRF
• John Hancock Funds Disciplined Value Fund JDVNX
• Putnam Large Cap Value Fund PEQSX
• Schwab Fundamental US Large Company ETF FNDX

Over the last 12 months, the large-value Morningstar Category returned 15.1%. On an annualized rate, large-value funds have returned 14.10% over the last three years and 12.11% over the last five. That compares with the Morningstar US Market Index, which has returned 16.77% over the last 12 months, 22.94% per year over the last three years, and 13.79% per year over the last five years.

Screening for the Top-Performing Large-Value Funds

Large-value portfolios invest primarily in large US stocks that are less expensive or growing more slowly than other large-cap stocks. Stocks in the top 70% of the capitalization of the US equity market are defined as large-cap. Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow).

To find the best large-value funds, we looked at returns data from the past one, three, and five years using Morningstar Direct. We screened for open-end and exchange-traded funds in the top 33% of the category using their lowest-cost primary share classes for those periods. We also filtered for funds with a Morningstar Medalist Rating of Bronze, Silver, or Gold. We excluded funds with assets under $100 million and analyst coverage that was not 100%. This left eight investments.

Because the screen was created with the lowest-cost share class for each fund, some may be listed with share classes that are not accessible to individual investors outside of retirement plans, or they may be aimed at institutional investors and require large minimum investments. The individual investor versions of those funds may carry higher fees, reducing returns to shareholders. In addition, Medalist Ratings may differ among the share classes of a fund.

American Funds Washington Mutual Investors Fund

• Morningstar Medalist Rating: Gold
• Morningstar Rating: ★★★★★

This $209.5 billion fund has climbed 17.34% over the past year, outperforming the average fund in its category, which rose 15.10%. The Capital Group fund, launched in May 2009, has climbed 18.42% over the past three years and 14.88% over the past five.

Veteran leadership and a proven approach make American Funds Washington Mutual a worthy option. Morningstar has changed the way we assess alpha opportunity for funds, which is a key component in our Morningstar Medalist Rating calculation. More of this strategy’s Medalist Ratings than usual may therefore change with this update even in the absence of substantial changes to pillar ratings or fund costs.

The strategy remains in strong hands. While veteran managers Jeffrey Lager and Alan Wilson stepped off this strategy in 2024, it is well supported. Alan Berro, who heads the eight-manager team, started in the industry in the 1980s and has run money here since the late 1990s. The firm disclosed Aline Avzaradel as a named manager in early 2024 to help ease the departures. All eight managers each have more than 20 years of investment experience. Behind the management team sits a deep and talented team of more than 100 analysts.

The time-tested approach here centers on dividends and the ability to pay them, but it has some flexibility to invest in non-dividend-payers. It prioritizes US investment-grade companies with a long history of paying dividends, but leadership has wisely updated the guidelines in response to seismic market shifts over the years. For example, during times of heightened stress like the pandemic, the fund’s board granted temporary approval for managers to continue holding stocks like General Motors, which suspended its dividend in the wake of the pandemic. The managers can also allocate a small portion of the fund’s assets to non-dividend-payers that combine ongoing superior profitability with modest leverage relative to industry peers, such as Cadence Design Services.

This strategy’s focus on dividends has led to a fairly conservative portfolio that has served risk-averse investors well. The strategy has gotten ahead by offering a less volatile portfolio that consistently holds up well in downturns. Since Berro’s 1997 start, the strategy has held up better than the S&P 500 in all but four market declines of 10% or more. On the other hand, it has typically lagged in more growth-fueled rallies. For example, the fund trailed the index in 2023 and 2024 and landed in the bottom half of the peer group in both years, in part thanks to smaller stakes in technology companies with small or no dividend yields, such as Nvidia. During the volatile first five months of 2025, the strategy’s quality-oriented focus landed it in the top decile of peers.

BNY Mellon Dynamic Value Fund

• Morningstar Medalist Rating: Bronze
• Morningstar Rating: ★★★★

This $10.4 billion fund has climbed 19.49% over the past year, outperforming the average fund in its category, which rose 15.10%. The BNY Mellon fund, launched in July 2013, has climbed 16.32% over the past three years and 17.06% over the past five.

BNY Mellon Dynamic Value’s experienced leadership and rigorous process have driven consistent results, making it a strong choice for investors. In addition to the fund, this strategy includes an active exchange-traded fund and separately managed account clones.

Brian Ferguson has ably led this team since 2003. John Bailer joined the management ranks in 2004, and Keith Howell, an analyst of 16 years at the firm, came aboard as a comanager in September 2021. Ferguson and Bailer have posted strong results here over two decades and on BNY Mellon Income Stock over more than a decade. They lean on a large, central analyst bench; however, that team of about two dozen has seen ongoing turnover for the past seven years, in part because of a merger of Mellon with Newton and a move to a new team structure in 2021. Changes have continued over the past year, and it’s an open question whether the firm can attract and retain top talent. These issues cause concern, but they are ameliorated by the fact that the managers have deep experience and take an active role in overseeing sectors and individual stocks.

The “value-with-a-catalyst” process stands out as a somewhat aggressive yet consistently value-oriented approach whose insistence on improving fundamentals helps it avoid value traps. Quantitative screens trim the Russell 1000 Index universe based on attractive valuations, strong fundamentals, and improving business environments, with specific criteria varying across industries. Analysts help look for potential future catalysts, and the managers use the valuation-fundamentals-catalyst framework to build the portfolio. The focus on catalysts shortens the investment horizon, leading to higher turnover. Ferguson isn’t afraid to hold major active positions within sectors, up to 10 percentage points of the index, which often focus on financials and healthcare.

This strategy has long boasted consistent outperformance, topping both the benchmark and typical large-value peer over 70%-85% of rolling three-year periods of Ferguson’s two-plus-decade tenure. But recent performance has been especially strong; while the strategy typically lags its bogies in down markets, it has thrived in 2022–23 drawdowns, helping it widen outperformance margins. And despite the topsy-turvy markets so far in 2025, it was in the top 15% of peers as of June 30. Investors continue to be in good hands here.

Fidelity High Dividend ETF

• Morningstar Medalist Rating: Silver
• Morningstar Rating: ★★★★★

This $7.9 billion fund has gained 16.99% over the past year, while the average fund in its category is up 15.10%. The Fidelity fund, launched in September 2016, has climbed 18.95% over the past three years and 16.19% over the past five.

Fidelity High Dividend ETF rides the line between income and price appreciation. It provides a higher dividend yield than the average fund in the large-value Morningstar Category without sacrificing its growth prospects.

The fund tracks the Fidelity High Dividend Index, a portfolio of large- and mid-cap US stocks that can hold some stocks from international developed markets. The index filters out stocks without dividends and stocks with the highest payout ratios, which could signal unsustainable dividends. Stocks are then scored based on their dividend yield, payout ratio, and dividend growth. Those with the best sector-relative scores are included in the index. This process helps filter out companies with poor financial health—a concern with high-yield dividend-paying stocks.

The index reweights each sector using the broad US market as a starting point and reallocates up to 40% from the lower-dividend-paying sectors to the higher-dividend-paying sectors. Within each sector, stocks are weighted based on their market cap with a size adjustment to mitigate any biases toward smaller stocks.

The fund’s market-relative sector weights mean its sector allocations look different from its average large-value peer. It held 10 percentage points more in technology stocks and 11 percentage points less in healthcare stocks, as of April 2025. Though, it still held fewer technology stocks than the broad US market. Technology stocks don’t pay high dividends compared with other sectors, but they have helped in fund price appreciation. Heavier portions of higher-dividend-paying sectors, like real estate and consumer defensive stocks, have pushed the fund’s dividend yield higher than its average peer.

The exchange-traded fund has generated more income than the average large-value fund and outperformed its average peer by 2.53 percentage points from its September 2016 inception through May 2025. During that time, the fund exhibited a touch more volatility, but its risk-adjusted performance trounced peers. The fund’s higher allocation to technology stocks has been the main driver of its positive performance in the past five years through May 2025.

Invesco Comstock Fund

• Morningstar Medalist Rating: Silver
• Morningstar Rating: ★★★★

This $12.9 billion fund has gained 17.70% over the past year, while the average fund in its category is up 15.10%. The Invesco fund, launched in September 2012, has climbed 15.44% over the past three years and 16.02% over the past five.

Invesco Comstock has seasoned hands and a proven approach on its side. It remains a strong large-value option. Morningstar has changed the way we assess alpha opportunity for funds, which is a key component in our Morningstar Medalist Rating calculation. More of this strategy’s Medalist Ratings than usual may therefore change with this update even in the absence of substantial changes to pillar ratings or fund costs.

Co-lead managers Kevin Holt and Devin Armstrong are an impressive duo. Holt has been here since 1999, and Armstrong joined him on the management ranks in mid-2007. Since then, the managers have proved their stock-picking abilities and have shown a willingness to go against the grain. To shore up their staff, they promoted Umang Khetan from analyst to comanager in June 2020. In 2023, the team hired analyst Shan Wang to the group. Jay Warwick has also been a listed manager here since 2007, but he focuses on operations. Altogether, this squad is well-suited to run this approach.

The team has consistently and reliably executed its contrarian approach. The managers seek companies trading at cheap valuations relative to their industry peers based on a variety of metrics. If a stock meets their criteria, they’ll conduct rigorous fundamental research, meet with company management, and identify potential risks to their thesis to come up with a fair value estimate for each holding. This thorough research gives the managers ample confidence to invest wherever they see value, and they make bold bets on beaten-down stocks. For instance, the managers stuck with their energy overweighting through 2020 when oil prices sharply declined, and the bet paid off in 2021 and 2022 when energy prices rose and helped the strategy outperform the Russell 1000 Value Index and nearly all its large-value Morningstar Category peers.

The contrarian approach requires patience, but long-term investors have been rewarded. Since Holt’s August 1999 start, the A share class’ 8.5% annualized return through February 2025 beat the index and typical peer by 1.2 and 1.8 percentage points, respectively.

Invesco RAFI US 1000 ETF

• Morningstar Medalist Rating: Silver
• Morningstar Rating: ★★★★

This $8.6 billion fund has gained 18.47% over the past year, while the average fund in its category is up 15.10%. The Invesco fund, launched in December 2005, has climbed 17.14% over the past three years and 14.48% over the past five.

Invesco RAFI US 1000 ETF and Invesco RAFI US ETF started tracking a new index in March 2025, but that didn’t change the discipline, diversification, and low costs that make them good long-term investments.

These ETFs now track the RAFI Fundamental Select US 1000 Index; its fundamental weighting and disciplined rebalancing schedule are very similar to the index it replaced. Fundamental weighting divorces stock prices from weightings. When the index rebalances, it doubles down on stocks whose prices declined relative to their fundamentals, like dividends and cash flows, and trims exposure to those on the rise. That works best when overhyped stocks sink and undervalued names bounce—a phenomenon known as mean reversion. The risk lies in extending too much rope to unworthy firms and prematurely reining in winners.

That approach pushes the funds into value territory, but the holdings cover the full large- and mid-cap market. This broad scope gives the strategy an edge over stricter peers. The funds boosted stakes in Amazon.com and Alphabet—growth stocks that are off-limits to most value rivals—when they rebalanced in March 2023 after both firms plummeted in the 12 months prior. Those timely trades helped the strategy’s 2023 returns trounce the Russell 1000 Value Index, the Morningstar Category benchmark for the US-domiciled version.

The strategy diversifies well at the stock and sector levels, too. The top 10 holdings normally represent 15%-20% of the portfolio, and sector weightings rarely crack 20%.

The US-domiciled ETF beat the Russell 1000 Value Index by about 1.7 percentage points annualized from its late 2005 launch through the end of May 2025. Nearly all that outperformance came from its previous benchmark, but the new index would have performed similarly.

John Hancock Funds Disciplined Value Fund

• Morningstar Medalist Rating: Silver
• Morningstar Rating: ★★★★

This $18.3 billion fund has gained 18.26% over the past year, while the average fund in its category is up 15.10%. The John Hancock fund, launched in May 2009, has climbed 16.17% over the past three years and 14.70% over the past five.

Boston Partners Large Cap Value Equity is losing a founding figure, but not its footing. Topnotch leadership remains, and its approach is time-tested, so it continues to be a compelling offering for its cheapest versions. The strategy includes US-sold mutual fund John Hancock Disciplined Value and Luxembourg-domiciled Robeco BP US Large Cap Equities.

In mid-2025, subadvisor Boston Partners announced that Mark Donovan, who has led this strategy since its 1997 launch and co-founded the firm two years earlier, will retire in April 2026. Such news would shake many firms. Here, it’s just the culmination of a transition that had already long been under way.

The strategy remains in the hands of comanagers who are no mere understudies. They are seasoned, deeply immersed in the investment process, and backed by a well-resourced research team. David Cohen and Joshua White, elevated to comanagers in 2018 and 2021, respectively, have since taken on substantial responsibility. White, now a co-chief investment officer at Boston Partners, has been with the firm for nearly two decades. Cohen, who arrived in 2016 from Loomis Sayles, brings his own investment pedigree. Both rose from the firm’s analyst bench and have helped drive the strategy’s outperformance versus relevant benchmarks and peers in each of the past four (and probably soon-to-be five) calendar years—results that speak to their skill and the rigor of their investment process.

The team’s three-pillar approach—seeking cheap, fundamentally sound companies with improving business momentum—stands out among value investors. A robust quantitative screen narrows the field, while bottom-up research guides final stock selection. Consideration of momentum helps avoid value traps, while an eye on balance-sheet strength adds resilience.

Distinctive touches further set this strategy apart. Unlike many of its peers, the portfolio includes a steady dose of out-of-benchmark ideas, which reflects depth in the team’s idea pipeline and its ability to uncover overlooked opportunities. In 2025, for instance, big gains from out-of-index holdings like Kinross Gold (a metals and mining stock) and Cencora (pharmaceutical distribution) contributed meaningfully to returns.

Donovan’s exit will close a chapter. But thanks to the firm’s careful succession planning and low analyst turnover, the transition will likely be more of an evolution than a rupture.

Putnam Large Cap Value Fund

• Morningstar Medalist Rating: Silver
• Morningstar Rating: ★★★★★

Over the past year, the Franklin Templeton fund rose 20.79%, while the average fund in its category rose 15.10%. The fund, launched in July 2012, has climbed 18.84% over the past three years and 16.07% over the past five.

Putnam Large Cap Value benefits from a proven manager and a disciplined approach.

Morningstar’s recent enhancement to the way we assess the alpha opportunity for funds, which is a key component in our Morningstar Medalist Rating calculation, means that some of this strategy’s Morningstar Medalist Ratings have changed with this update despite no changes to its pillar ratings and no significant change in fund costs.

Lead manager Darren Jaroch has a long and successful history with this strategy. He helped build the strategy’s quant model in the early 2000s as an analyst and deserves partial credit for its strong 12-year record under former manager Bart Geer. Jaroch has compiled an excellent record since taking over as lead manager in August 2012, despite facing challenges such as a significant reduction in Putnam’s central analyst team between 2014 and 2019. The research team’s stability has improved in recent years, with minimal turnover since 2022 and even adding several analysts in 2024. Lauren DeMore was promoted to comanager in 2019 after nearly 15 years as an analyst, further strengthening the team. Together, Jaroch and DeMore also run Putnam International Value, which also has a solid record.

The managers successfully combine quantitative and qualitative research in their approach. They leverage a six-factor relative value screen to identify opportunities, but they’re not beholden to the model’s recommendations. The managers will lean on the central analysts for additional ideas, as well as deeper insights on companies that the model does not capture, such as management quality and potential catalysts. The managers then carefully construct the roughly 70- to 90-stock portfolio to ensure that stock-picking, rather than sector bets or factor tilts, drives performance.

Under Jaroch’s watch, the strategy has an excellent record. From his August 2012 start through April 2025, the A shares’ 12.3% annualized return topped the Russell 1000 Value Index and the average large-value Morningstar Category peer by 1.9 and 2.4 percentage points, respectively. Recent results have continued to impress, as the strategy’s trailing three- and five-year returns all rank in the top decile of its category. Strong stock-picking across several sectors, but particularly among healthcare and consumer discretionary names, fueled these results.

Schwab Fundamental US Large Company ETF

• Morningstar Medalist Rating: Silver
• Morningstar Rating: ★★★★★

Over the past year, the Charles Schwab fund rose 16.89%, while the average fund in its category rose 15.10%. The fund, launched in August 2013, has climbed 17.53% over the past three years and 15.02% over the past five.

Schwab Fundamental US Large Company uses an unconventional yet contrarian approach to take advantage of mean reverting prices that should produce a long-term edge.

This fund tracks the RAFI Fundamental High Liquidity US Large Index. It targets large- and mid-cap US stocks and weights its holdings based on sales (adjusted for leverage), retained operating cash flow, and dividends plus buybacks. When the fund rebalances, it increases exposure to stocks that have become cheaper relative to these metrics and trims those that have become more expensive.

This approach has some advantages. Steering the portfolio away from the most expensive stocks can aid performance when valuations mean-revert, meaning they appreciate back to historical levels. But there is a trade-off: Ignoring prices means the fund can overweight those with declining fundamentals, adding to its risk.

The index calculates each stock’s fundamental weighting annually in March, but it rebalances a different fourth of its portfolio each quarter. Breaking up the rebalancing trades helps reduce the risk of poorly timed rebalances and the market-impact costs of trading.

While the fund includes growth stocks, they do not detract from the portfolio’s value orientation because it underweights them relative to a broad market index such as the Russell 1000. Incorporating growth stocks improves diversification, and they should aid index-relative performance when growth-leaning names outperform those with cheaper valuations.

Sweeping growth stocks into the portfolio has been an advantage. They helped the exchange-traded fund beat the Russell 1000 Value Index by 2.2 percentage points annualized from its launch in August 2013 through May 2025. The mutual fund tracks the same index and has provided similar performance. Schwab charges the same 0.25% fee for each fund, which lands at the cheaper end of the spectrum in the large-value Morningstar Category.