6 Best Mutual Funds for Investing in Value Stocks

Fund Watch

6 Best Mutual Funds for Investing in Value Stocks

These funds will benefit from the shift away from growth and toward value stocks.


The picks below are part of Kiplinger’s Personal Finance’s annual Best List, a roundup of the best values in all the areas we cover — from funds, stocks and ETFs to credit cards and bank accounts to cars, college, kid stuff, phone plans, travel and health. Discover all our Best List picks here.

Dodge & Cox Stock (DODGX), a longtime member of the Kiplinger 25, invests in companies with bright prospects and depressed share prices. The fund charges 0.52% a year, one of the lowest expense ratios you’ll find among actively managed funds with modest minimums.

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If you want to own undervalued small-company stocks, look no further than T. Rowe Price Small-Cap Value (PRSVX), also a member of the Kip 25. David Wagner, the fund’s manager since June 2014, has been reshaping the port­folio, and the fund is having a banner 2016, returning 14.4% in the first nine months of the year. Annual fees, at 0.80%, are reasonable.

Plenty of ETFs specialize in value stocks. Our top picks include PowerShares Dynamic Large Cap Value (PWV, $31), SPDR S&P 400 Mid Cap Value (MDYV, $86), Vanguard Small-Cap Value (VBR, $111) and Vanguard Value (VTV, $87). With an expense ratio of 0.57%, the PowerShares fund is a bit pricey for an ETF. The others charge 0.15%, 0.08% and 0.08%, respectively.

See Also: 7 Blue-Chip Stocks Due for a Turnaround