Morningstar

9 Top-Performing Large-Value Funds

Funds from Invesco, Natixis, and BNY are among the best performers.

Stylebox illustration for Large Value Funds

Value investing can provide opportunities to outperform the market, but it can also lead investors into value traps. These funds are the top performers among the many options investors have to pursue a value investing strategy. To screen for the top-performing funds in this category, we looked for those with the best returns over the last one-, three-, and five-year periods. Nine funds made it through the screen.

  • 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
  • Natixis Funds Trust II Oakmark Fund NOANX
  • Oakmark Select Fund OANLX
  • Schwab Fundamental US Large Company ETF FNDX
  • Vanguard Windsor II Fund VWNAX

Over the last 12 months, the large value category returned 10.2%. On an annualized rate, large-value funds have returned 13.72% over the last three years and 13.33% over the last five. That compares with the Morningstar US Market Index, which has returned 18.93% over the last 12 months, 20.83% per year over the last three years, and 15.40% per year over the last five years.

What Are 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).

Screening for the Top-Performing Large-Value Funds

To find the best large-value funds, we looked at returns data from the past one, three, and five years using data available in Morningstar Direct. We screened for open-ended 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 nine 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.

BNY Mellon Dynamic Value Fund

This $9.3 billion fund has climbed 12.46% over the past 12 months, outperforming the average fund in its category, which rose 10.20%. The BNY fund, launched in July 2013, has climbed 16.20% over the past three years and 18.79% 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.

“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.”

—Drew Carter, analyst

Fidelity High Dividend ETF

Over the past 12 months, the $6.9 billion fund has gained 14.62%, while the average fund in its category is up 10.20%. The Fidelity fund, which launched in September 2016, has climbed 18.87% over the past three years and gained 17.93% over the past five years.

“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 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.”

—Brendan McCann, associate analyst

Invesco Comstock Fund

Over the past 12 months, the $12.9 billion fund has gained 13.06%, while the average fund in its category is up 10.20%. The Invesco fund, launched in September 2012, has climbed 15.26% over the past three years and 18.14% over the past five years.

“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.

“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.”

—David Carey, analyst

Invesco RAFI US 1000 ETF

Over the past 12 months, the $8.2 billion fund has gained 14.15%, while the average fund in its category is up 10.20%. The Invesco fund, launched in December 2005, has climbed 16.33% over the past three years and 16.02% 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.

“The strategy diversifies well at the stock and sector levels. 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.”

—Daniel Sotiroff, senior analyst

John Hancock Funds Disciplined Value Fund

Over the past 12 months, the $18.6 billion fund has gained 13.79%, while the average fund in its category is up 10.20%. The John Hancock fund, launched in May 2009, has climbed 15.98% over the past three years and 16.44% over the past five.

“The team’s approach to identifying competitively advantaged, value-oriented stocks gives this strategy a convincing edge. It focuses on finding reasonably priced companies with strong fundamentals and positive business momentum. The process begins with a quantitative screen that ranks stocks based on metrics like price/earnings ratios, setting the stage for in-depth fundamental research. Analysts then conduct comprehensive evaluations on each stock. While attractive valuations are important, the team emphasizes finding stocks with durable business momentum—such as improving profit margins—to avoid investing in stocks that screen as cheap but may have deteriorating businesses. As a result, the portfolio typically trades at a discount to its Russell 1000 Value Index benchmark (measured by price/sales) while boasting higher profitability metrics such as average return on invested capital.

“The strategy has delivered strong performance. Over the long term, its A shares’ 9.1% annualized gain from January 1997 through November 2024 outpaced the Russell 1000 Value Index’s 8.9% and ranked in the top quartile of large-value Morningstar Category peers. Recent results have been equally strong. Since White joined in 2021, the strategy has ranked comfortably within the top half of its peers in each of the past three calendar years and the year to date through November 2024.”

—Andrew Redden, analyst

Natixis Funds Trust II Oakmark Fund

The $1.2 billion fund has climbed 14.79% over the past 12 months, outperforming the average fund in its category, which rose 10.20%. The Natixis fund, launched in May 2017, has climbed 18.88% over the past three years and 18.72% over the past five.

“The strategy is on a hot streak. It has thrived mainly on good stock-picking since the early days of the coronavirus pandemic, besting its S&P 500 prospectus benchmark and most peers in the large-value Morningstar Category (which it joined from large-blend in March 2021). In recent years, Nygren and his colleagues took flak for venturing into companies such as Alphabet (which it still owns) and Meta Platforms (now sold) because some considered those quintessential growth stocks. But “growth” and “value” aren’t absolutes. Growth stocks can get cheap, and the Harris team has proved adept at seizing those opportunities. That’s part and parcel of the team’s multifaceted approach to finding value, which involves much more than simply looking at price metrics. The group carefully tailors its view of value to each company’s components, financials, industry, and market.

“While the strategy won’t always be on top, its long-run prospects are promising. That’s even while acknowledging that Bill Nygren, Harris Associates’ CIO of US equities, is entering his late 60s. Running this strategy is a team effort. Comanagers Michael Nicolas and Robert Bierig are fine complements to Nygren, sharing ideas and engaging in healthy debate with the legendary value investor. (Michael Mangan, Harris’ head of private wealth management, is also named on Natixis Oakmark.) Investors should expect plenty of notice before Nygren steps away, and they should be comfortable if—as seems likely—Nicolas and Bierig take over.

“The Natixis and Luxembourg versions differ a bit from Oakmark but remain worthy. The Natixis product doesn’t use options like Oakmark, but they’re peripheral features of the strategy anyway. The Luxembourg offering now has the same management team as Oakmark, and the two portfolios are increasingly aligned.”

—Tony Thomas, associate director

Oakmark Select Fund

Over the past 12 months, the $7.5 billion Oakmark Select Fund rose 15.66%, while the average fund in its category rose 10.20%. The Natixis fund, launched in November 2016, has climbed 18.25% over the past three years and 16.92% over the past five.

“This strategy is somewhat riskier than the one behind the Oakmark fund, even though manager Bill Nygren has led both offerings for many years. (He started on Select in 1996 and Oakmark in 2000.) The two strategies seek cheap stocks that can grow their per-share value under the guidance of effective management. They’re not bound by mere price metrics (such as price/earnings or price/book) when determining value. Instead, Nygren and his colleagues consider a company’s worth from various angles and with reference to its unique features and its industry. Yet unlike Oakmark itself, which invests broadly among as many as 60 stocks, Select often holds less than two dozen. Individual position sizes can get pretty big, up to 10%, and smaller-cap companies can have greater influence.

“It’s a potentially volatile mix. For one thing, decisions on just a few stocks can alter the portfolio’s character. Its sector weightings, top holdings, and position in the Morningstar Style Box can all change dramatically. Returns are often bouncy, too.

“But what isn’t shaky here is the team running it. Nygren, now 66, has trained up a strong team—including comanagers Robert Bierig and Alex Fitch—to keep things going well into the future. Bierig and Fitch are true complements to Nygren; whereas Nygren often takes a higher-level, bigger-picture view of companies, Bierig and Fitch are regularly down in the trenches doing company-specific research. Fitch, for his part, also oversees the US-focused research team. Nygren remains highly involved, but when the time comes for him to move on, investors should expect plenty of notice and should know that this strategy will stay in good hands.”

—Tony Thomas, associate director

Schwab Fundamental US Large Company ETF

Over the past 12 months, the $20.2 billion fund has gained 13.24%, while the average fund in its category is up 10.20%. The Charles Schwab fund, launched in August 2013, has climbed 16.89% over the past three years and 16.65% over the past five.

“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.

“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.”

—Daniel Sotiroff, senior analyst

Vanguard Windsor II Fund

The $61.7 billion fund has climbed 12.69% over the past 12 months, outperforming the average fund in its category, which rose 10.20%. The Vanguard fund, which launched in May 2001, has climbed 16.86% over the past three years and gained 15.09% over the past five years.

“Striking a better balance among the subadvisors gives this strategy more reliable exposure to large-value stocks. The unbalanced lineup from 2020 to 2024 caused the fund’s style to shift from large-value toward large-blend in the Morningstar Style Box, primarily on account of Lazard’s 35%-40% weighting. Now it’s moving back to its traditional large-value home.

“Given growth stocks’ hot run during the current lineup’s tenure, the fund’s performance has been attributable to its blend tilt. From Dec. 17, 2019, through Oct. 31, 2024, its Admiral shares gained 12.7% annualized over the period, trouncing the large-value Morningstar Category’s 9.7% and the Russell 1000 Value Index’s 9.3% but lagging the large-blend S&P 500 benchmark’s 14.5% mark.

“The fund remains a decent choice. The managers are seasoned and use sensible approaches. The portfolio is well-diversified and investors stand to benefit from either share class’ modest fees.”

—Todd Trubey, senior analyst

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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