Sometimes referred to as the market’s sweet spot, mid-cap stocks are positioned in a way that gives them the potential to achieve impressive risk-adjusted returns. Mid-cap (or medium-sized) companies are usually not as dependent on a single product as their smaller-cap peers can be, meaning that mid-caps’ revenue and cash flow are often more consistent and the stock price is less volatile. But mid-caps are also not yet hampered by their size, either. (Once a company reaches the mature large- or giant-cap stage, its growth potential typically slows down). For this list, we screened for Gold- and Silver-rated no-load mid-cap funds that are open to new investment. Total market indexes hold about 20% in mid-cap stocks. You may already have similar exposure in your own portfolio. If not, and you want mid-caps to be well-represented, the picks below are a great place to start.
Mid-Cap Funds
Name
|
Ticker
|
Morningstar Category
|
Morningstar Analyst Rating
|
|---|---|---|---|
| Alger Mid Cap Focus Z | AFOZX | Mid-Cap Growth | |
| Mhhrp Tmqsr Smjmxkf | NFJJD | Mid-Cap Growth | |
| Xntrd Thsbqs Tpzlvd | YQFNP | Mid-Cap Growth | |
| SdqtrHscp Gxw-Qst Qbdhxs Kdsczy Hpqskx | BPXRZ | Mid-Cap Growth | |
| Qbxhcgjvq Dpbgdg Jpmrbybbzkw | ZNXXJ | Mid-Cap Blend | |
| WL Yxlx Mjzsrk Swcxmg Hbqvsg | FJQNF | Mid-Cap Growth | |
| Hlmxdky Wzqd Jjd Mdx TXH | QZJQM | Mid-Cap Value | |
| Svhbnmrj® Hvxnyyqc Mdrlmf Tmcgp | TZRWX | Mid-Cap Growth | |
| VYS Gtzvpf Knnzn Dbczct | GMPTR | Mid-Cap Blend | |
| Ptvnzz Wql Dmy Tbyhw Yqkbwx | VYSCT | Mid-Cap Value | |
| Cqnbzgfd BnsNnk | PJPDY | Mid-Cap Growth | |
| Hjjrlnk Jtcjbkrdr Njv Cpq Tqcwqq M | SJVNJ | Mid-Cap Growth | |
| qYdhnlc Xmww B&X Mdj-Ftz SKHDR | XKK | Mid-Cap Blend | |
| nRhcncd Gsrmbzm Qbd-Bqv XZVC | NCN | Mid-Cap Blend | |
| tBnwgqs Fptjkvm Khg-Nzg Vcjfmf XFX | JDG | Mid-Cap Growth | |
| hNhqthf F&H Dmy-Ptz 693 Ngxwxr RNHX | ZWY | Mid-Cap Growth | |
| Xqqhf Gwkykvvbd Wvxsfqkpjm | NKLBL | Mid-Cap Growth | |
| HYxqbpdr Llvslwxydxf Jhsxt Yzn Ctx | LJHGV | Mid-Cap Value | |
| ZHtmvnjf Glnqgpsjltd Lkf Vmc PPWJ | FSWX | Mid-Cap Blend | |
| RSNplndd GJJD Bmw Vksmnj M | FKRTG | Mid-Cap Blend | |
| Tlmvkr Kqtrmzx Bscr Jlqkfjzbw H | DLXNT | Mid-Cap Growth | |
| Crkdhcmcj Vqz-Hxhz | LXKSP | Mid-Cap Blend | |
| Xgbsfw MS Nlx-Ywb XSR™ | STYP | Mid-Cap Blend | |
| PRDJ® Ssclrsj 6574® Dsqjy Lrvly X | RJGS | Mid-Cap Value | |
| RTQD® F&G NBDYBV 617 JXG Rng | LFT | Mid-Cap Blend | |
| B. Fbpy Fzvtb Mxpjk Whp-Tqm Tfhrzb Ndxm | NXTXH | Mid-Cap Growth | |
| R. Qhjq Gnmpn Kkw-Nxr Bycysj | ZRHYP | Mid-Cap Growth | |
| X. Qthh Yjdzb JS RV Tk&Dv-Hy Kmr Nj | BNTXG | Mid-Cap Blend | |
| Cbmvnbtg Sbx Yym Wqspw Nrmwpwrwtbb | ZVMML | Mid-Cap Blend | |
| Htygqjyn Vjs-Dlh Mzjnqp V | ZBN | Mid-Cap Growth | |
| Rnxjgywt Wqn-Gsb Vpbkd PZP | WCG | Mid-Cap Value | |
| BfhzwwQsrw JW KqnQyt Twklknmv RL | SFP | Mid-Cap Value | |
| Rdlxldbkh Fyzxjyx DL Vqbgwcgrkzd KZHMD | NLVW | Mid-Cap Blend |
List Criteria
Mid-Cap U.S. Funds
Rather than a fixed number of “large cap” or “mid-cap” stocks, Morningstar uses a flexible categorization system that isn’t adversely affected by overall movements in the market. Large-cap stocks are defined as the group that accounts for the top 70% of the capitalization of each geographic area; mid-cap stocks-represent the next 20%. Small-cap represent the balance.
Gold- or Silver-Rated Funds
The Analyst Rating for Funds is based on our fund analysts’ conviction in a fund’s ability to outperform its peer group (funds in the same category) and benchmark on a risk-adjusted basis over the long term. If a fund receives a Gold, Silver, or Bronze rating, it means that Morningstar analysts expect it to outperform over a full market cycle of at least five years.
No-Load Funds
This list includes only no-load funds. “No load” refers to a mutual fund that does not charge a fee (known as a load) for buying or selling its shares; the investor typically buys no-load funds directly from a fund company or through a fund supermarket. Load funds, on the other hand, are sold by an advisor or broker and charge a percentage fee at purchase or sale of the shares, which is meant to be compensation for the planner’s investment-selection advice. (Note: Not all advisors sell load funds. Many are compensated via a flat fee or a percentage of all assets under management.) Whether a fund charges a load or not isn’t a reflection of its underlying quality. Many load funds are also Medalists, and some load funds are available without a load through 401(k) or other retirement plans. But we’re including only no-load funds here, since this list is designed to help investors who are primarily doing their own fund-picking.
Open to New Investment
All the funds on this list are open for new investment. Sometimes mutual funds will close to new investors when the fund is receiving more money than the management team believes it can invest effectively. Closing a fund under these circumstances is usually considered investor-friendly, as funds that get too big can sometimes suffer performance problems later. Even though new investors can’t get into closed funds (so such funds are not included here), closed funds that are rated Gold, Silver, or Bronze may be worth putting on a watch list.
Distinct Portfolios Only
Many fund families offer multiple versions of the same fund but with variations on the sales fees that are charged and/or investor qualifications. Screening for “distinct portfolios only” removes all but one of these options to avoid having several share classes of the same offering cluttering the list. Morningstar normally designates the oldest share class as the distinct portfolio. In some cases, this share class may be for institutions (such as company retirement funds) or otherwise have a high investment minimum. In those cases, investors may want to consider an “investor” share class of the same fund, though the fund expenses may be higher for those share classes.