mutual funds

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.

Thinkstock

Kiplinger's Best List, 2016

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.

Most Popular

Why Are Gas Prices Still Going Up?
spending

Why Are Gas Prices Still Going Up?

The cost of a gallon of gas is heading back toward its March highs. What’s driving the resurgence, and will gas prices go down anytime soon?
May 23, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
Retirement Income Shouldn’t Depend on the Market; It Should Depend on Math
retirement planning

Retirement Income Shouldn’t Depend on the Market; It Should Depend on Math

The math isn’t as tough as you might think. It all starts with dividing your assets into three different buckets.
May 23, 2022

Recommended

What You Need to Know About Mutual Fund Returns
mutual funds

What You Need to Know About Mutual Fund Returns

A guide to the many ways these popular investments measure their performance.
May 26, 2022
9 Great Alternative-Strategy Funds for Volatility
mutual funds

9 Great Alternative-Strategy Funds for Volatility

These alternative-strategy funds can offer some shelter from stock and bond market turmoil.
May 26, 2022
FWRLX: Shopping the Telecommunications Bargain Bin
mutual funds

FWRLX: Shopping the Telecommunications Bargain Bin

This fund invests in stocks in the communications services sector, which have been drastically marked down.
May 25, 2022
Bond Values in a Volatile Market
Investing for Income

Bond Values in a Volatile Market

While the market's instability may not be over just yet, the latter half of the year should be less daunting – and possibly more rewarding – for inves…
May 25, 2022