6 Best Mutual Funds for Investing in Value Stocks

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

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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 (opens in new tab).

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Kiplinger's Best List, 2016

Dodge & Cox Stock (DODGX (opens in new tab)), 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 (opens in new tab)), 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.

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Plenty of ETFs specialize in value stocks. Our top picks include PowerShares Dynamic Large Cap Value (PWV (opens in new tab), $31), SPDR S&P 400 Mid Cap Value (MDYV (opens in new tab), $86), Vanguard Small-Cap Value (VBR (opens in new tab), $111) and Vanguard Value (VTV (opens in new tab), $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.

Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.