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.
Kiplinger's Best List, 2016
- Best Mutual Funds You Can Invest in for $125 or Less
- Best Mutual Funds for Dividend Investors
- Best Mutual Funds for Investing in Value Stocks
- Best Stocks for Yield at a Reasonable Price
- Best Online Brokers
- Best Rewards Credit Cards
- Best Deals in Online Banking
- Best Personal-Finance Websites, Apps and Software
- Best New Car Values
- Best Shopping Websites and Apps
- Best Ways to Save Time and Money on Travel
- Best Package Tours for Your Money
- Best Travel Discounts for Seniors
- Best Phone Plans for Every Type of User
- Best Websites and Tools to Save on Your Health
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.
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.
