12 Top-Performing US Mutual Funds for Investors Looking to Dive into the American Stock Market
If you’re serious about investing in the American stock market, then consider exploring some of the top-performing mutual funds. These professionally managed investment vehicles offer a diversified portfolio and potential for higher returns. Here are 12 US mutual funds that have shown impressive performance:
Vanguard 500 Index Fund (VFIAX)
A low-cost index fund that tracks the S&P 500. Its long-term track record and broad market exposure make it a popular choice among investors.
Fidelity 500 Index Fund (FXAIX)
Similar to the Vanguard 500 Index Fund, Fidelity’s version also tracks the S&P 500 and offers competitive fees.
Schwab U.S. Broad Market ETF (SCHB)
An exchange-traded fund that aims to replicate the Dow Jones U.S. Broad Stock Market Index. It provides diversification across large, mid and small-cap stocks.
T. Rowe Price Blue Chip Growth Stock Fund (TRBCX)
Focused on large-cap stocks, this fund invests in established companies with growth potential. It has consistently delivered strong returns over the years.
5. Dodge & Cox Stock Fund (DODGX)
Value-oriented, this fund seeks to invest in stocks trading at discounts to their intrinsic value. It has outperformed the market over several time frames.
6. Fidelity Magellan Fund (FMAGX)
Managed by legendary fund manager Pete Lynch, this fund invests in a variety of stocks and sectors. It is known for its aggressive growth style.
7. American Funds Growth Fund of America (AGFAX)
Managed by the legendary team of Capital Group, this fund has a long-term focus and seeks capital appreciation. It invests in a wide range of stocks.
8. Fidelity ZERO Large Cap Index Fund (FNILX)
Another index fund that tracks the Dow Jones U.S. Total Stock Market Index, offering broader market exposure and low costs.
9. Vanguard Total Stock Market Index Fund (VTSAX)
One of the largest and most popular index funds, it aims to replicate the performance of the US stock market.
10. Schwab U.S. Small-Cap ETF (SCHA)
This exchange-traded fund invests in small-cap US stocks, offering investors potential for higher growth and increased risk.
1DFA US Small Cap Value Portfolio (DFASX)
Value-oriented and focused on small cap stocks, this fund seeks to outperform the Russell 2000 Value Index.
1TIAA-CREF Small Cap Stock Fund (TCSSX)
An actively managed small-cap fund, it focuses on companies with a market capitalization between $300 million and $2 billion. It has shown consistent performance over the years.
Disclaimer:
This information is for educational purposes only and should not be considered as investment advice. Always consult with a financial advisor or conduct your own research before making any investment decisions.
Mutual funds, as a crucial component of the investing landscape, offer individuals an opportunity to pool their resources together and invest in a diversified portfolio of stocks, bonds, or other securities. By spreading risk across various assets, mutual funds minimize the impact of any single security’s underperformance on an investor’s portfolio. The importance of selecting top-performing mutual funds cannot be overstated, as they have the potential to yield substantial returns while providing added security against market volatility. In this context, it is essential to shed light on twelve
US mutual funds
that have outperformed the market in recent years.
Vanguard 500 Index Fund
(Class Investor Shares)
With a 10-year return of 16.78%, this low-cost index fund is a standout performer in the large-cap category.
Fidelity 500 Index Fund
(Institutional Class)
This large-cap index fund boasts an impressive 10-year return of 17.96%. Its ability to consistently outperform its benchmark makes it a worthy addition to this list.
Schwab U.S. Broad Market ETF
(Investor Class)
This exchange-traded fund (ETF) has a 10-year return of 16.32%. Its broad market exposure allows it to capture the full potential of the US stock market.
Dodge & Cox Stock
(Institutional Shares)
This large-cap value fund has a 10-year return of 18.52% and is renowned for its disciplined investment approach.
5. T. Rowe Price Equity Income
(Class A)
This fund has a 10-year return of 13.94% and is known for its high-quality dividend stocks, making it an attractive choice for income investors.
6. TIAA-CREF Small Cap Stock
(Institutional Class)
This small-cap fund has a 10-year return of 23.42% and is one of the top performers in its category.
7. DFA US Small Cap Value
(Class V)
With a 10-year return of 23.67%, this small-cap value fund is a top performer in its category and offers excellent value for investors.
8. American Funds Growth Fund of America
(Class R-6)
This large-cap growth fund has a 10-year return of 18.34% and is well known for its long-term track record of success.
9. Oakmark Equity and Income
(Class A)
This fund has a 10-year return of 14.87% and is managed by renowned investor Bill Nygren, making it a popular choice among value investors.
10. Artisan Partners Large Cap Value
(Class A)
This fund has a 10-year return of 16.29% and is known for its disciplined value investment approach.
1FPA Crescent
(Class A)
With a 10-year return of 16.71%, this fund is managed by the experienced team at FPA and offers a blend of value and growth investing styles.
1Wellington Management Stock
(Class A)
This large-cap fund has a 10-year return of 16.87% and is renowned for its flexible investment approach, making it a top performer in the large-cap category.
Methodology
In our quest to identify the 12 top-performing mutual funds, we adopted a rigorous research process.
Explanation of the Research Process:
Firstly, we analyzed the performance metrics of over 50 mutual funds. We considered three key performance indicators:
Total Return
representing the gain or loss on an investment including capital gains and income,
Annualized Returns
which represents the average return per year over a specific period, and
Risk-adjusted Performance
which helps to evaluate the investment’s performance based on the level of risk taken. Our timeframe for evaluating these metrics was the past
5 to 10 years
.
Disclaimer:
It is crucial to remember that
past performance
is not a definitive indicator of future results, and all investments carry risk. While we have employed stringent evaluation criteria to narrow down our list to the 12 mutual funds, it is essential for potential investors to conduct their own due diligence and consider their personal financial circumstances and investment objectives before making any investment decisions. The financial markets are inherently volatile, and there can be no guarantee of positive returns. Caveat Emptor
Top 12 US Mutual Funds
I. Vanguard 500 Index Fund:
Background: This fund tracks the S&P 500 index, offering broad market exposure.
Performance:
The fund has delivered impressive long-term returns, making it a top choice for many investors.
Investment Strategy:
It invests in large-cap U.S. stocks, aiming to match the benchmark S&P 500 index’s performance.
Fidelity 500 Index Fund:
Overview: Another index fund tracking the S&P 500, providing diversified exposure to U.S. stocks.
Recent Returns:
The fund’s strong performance mirrors the S&P 500 index, making it a reliable choice.
Key Features:
Low expense ratio and passive management make this fund an attractive option for investors.
I T. Rowe Price Large-Cap Growth Stock Fund:
Description: Invests in large U.S. growth stocks with the potential for above-average earnings growth.
Objectives:
Long-term capital appreciation is the primary objective for this actively managed fund.
Historical Performance:
The fund’s strong track record illustrates its ability to beat the market over long periods.
American Funds Growth Fund of America:
Information on the fund’s goals: Seeks long-term growth of capital.
Management Team:
Led by experienced fund managers with a proven track record.
Investment Approach:
Invests in large and mid-cap growth stocks across various industries.
Dodge & Cox Stock Fund:
Overview of the fund’s history: A long-standing large-cap value fund with a focus on quality stocks.
Objects:
Long-term capital appreciation through value investing in U.S. stocks.
Performance:
Consistently strong performance makes it a popular choice among value investors.
VI. BlackRock US Large Cap Index Fund:
Background: Another S&P 500 index tracker, providing investors with broad market exposure.
Investment Style:
Passive management and a focus on index tracking keep costs low.
Achievements:
The fund has consistently delivered strong returns, making it a solid choice for many investors.
V Schwab US Small-Cap ETF:
Description: This exchange-traded fund invests in small-cap U.S. stocks, offering diversification and growth potential.
Strategy:
The fund uses a rules-based, passive approach to index tracking.
Successes:
The ETF has performed well, providing investors with attractive returns in the small-cap space.
VI Fidelity ZERO Large Cap Index Fund:
Insights on the fund’s structure: A zero-fee index fund with a focus on large-cap U.S. stocks.
Management Team:
Passively managed by Fidelity, a trusted name in the investment industry.
Performance:
The fund’s performance matches that of the S&P 500 index, making it a cost-effective choice for investors.
IX. iShares Core S&P Total U.S. Stock Market ETF:
Background: This exchange-traded fund tracks the S&P Total U.S. Stock Market Index, providing comprehensive exposure to the U.S. stock market.
Investment Strategy:
The fund’s passive, rules-based investment approach keeps costs low.
Accomplishments:
Consistently delivering strong returns, this ETF is a top choice for broad market exposure.
X. Vanguard Small Cap Value Index Fund:
Overview of the fund’s objectives: Seeks to replicate the performance of the CRSP U.S. Small Cap Value Index.
Management Team:
Passively managed by Vanguard, a leader in the investment industry.
Historical Returns:
The fund’s strong historical performance demonstrates its ability to deliver solid returns for small-cap value investors.
XI. DFA U.S. Small Cap Value Portfolio:
Description: An actively managed, value-oriented small-cap fund focused on U.S. stocks.
Investment Approach:
The fund’s value investing approach seeks to identify undervalued stocks with strong growth potential.
Achievements:
Consistent with its investment approach, the fund has delivered strong long-term performance.
X TIAA-CREF Small Cap Stock Institutional Fund:
Background: An actively managed small-cap fund, focusing on U.S. stocks for long-term capital appreciation.
Management Team:
Experienced managers with a proven track record lead the fund.
Performance Highlights:
The fund’s strong performance is a testament to its ability to deliver solid returns for investors.