4 Top-Performing Large-Blend Funds | Morningstar

Large-cap blend funds can serve as the bedrock of a stock portfolio, but there are hundreds to choose from. To screen for the top performers among large-blend funds, we looked for those with the best returns over the last one-, three-, and five-year periods.

For investors seeking firm foundations for their portfolios, these large-cap stock funds also have high-conviction Morningstar analyst ratings, making them strong choices. We looked for those with the best returns over the last one-, three-, and five-year periods. Offerings from Vanguard stood out, taking up two of the four spots, and three of the funds track the S&P 500.

• Fidelity 500 Index Fund FXAIX
• Schwab S&P 500 Index Fund SWPPX
• Vanguard 500 Index Fund VFFSX
• Vanguard PrimeCap Fund VPMAX

Large-Blend Fund Performance

Large-blend portfolios are fairly representative of the overall US stock market in terms of size, growth rates, and price. Stocks in the top 70% of the capitalization of the US equity market are defined as large-cap. The blend style is assigned to portfolios where neither growth nor value characteristics predominate. These portfolios tend to invest across the spectrum of US industries, and owing to their broad exposure, their returns are often similar to those of the S&P 500 Index.

Over the past 12 months, the average fund in the large-blend Morningstar Category returned 35.08%. On an annualized basis, large-blend funds have climbed 18.90% over the past three years and gained 10.88% over the past five years. Meanwhile, the Morningstar US Market Index has risen 38.87% over the past 12 months, 21.02% per year over the past three years, and 11.73% per year over the past five.

To find the best large-blend funds, we looked at returns from the past one, three, and five years using Morningstar Direct. We screened for open-end and exchange-traded funds in the top 33% of the category using their lowest-cost primary share classes for those periods. We also filtered for funds with a Morningstar Medalist Rating of Gold. We excluded funds with assets under $100 million and analyst coverage that was not 100%. This left four investments.

Because the screen was created with the lowest-cost share class for each fund, some may be listed with share classes that are not accessible to individual investors outside of retirement plans, or they may be aimed at institutional investors and require large minimum investments. The individual investor versions of those funds may carry higher fees, reducing returns to shareholders. Medalist Ratings may differ among a fund’s share classes.

Fidelity 500 Index Fund

• Morningstar Medalist Rating

  : Gold

• : ★★★★

Over the past year, this Fidelity fund rose 38.63%, while the average fund in its category rose 35.08%. The fund, launched in May 2011, has climbed 21.20% over the past three years and 12.71% over the past five.

Fidelity S&P 500 accurately represents the large-cap US stock market, allowing its low fee and efficient portfolio to carve out a long-term edge.

The fund tracks the S&P 500. A committee selects 500 of the largest US stocks, or roughly 80% of the US stock market, and weights them by market cap. The index committee has discretion over selecting companies that meet its liquidity and profitability standards. While a committee-based approach may lack clarity, it adds flexibility to reduce unnecessary changes during reconstitution, taming transaction costs compared with more rigid rules-based indexes.

The fund holds a broad, well-diversified portfolio. It typically includes around 500 stocks, and the top 10 represented around 40% of the portfolio at year-end 2025. Still, market-cap weighting can contribute to portfolio concentration when a few stocks dominate the market. This has been the case lately with a handful of mega-cap technology stocks growing to prominence and commanding a greater share of the portfolio.

Fidelity 500 Index, the fund’s oldest share class, returned 14.8% annualized over the past 10 years through year-end 2025. It holds little cash, which should help it outperform cash-saddled active peers during market rallies. Likewise, low cash drag could hurt this fund when the stock market declines, but long-term positive returns give this efficient approach a clear edge. Performance across share classes will vary owing to differences in fees and currency exchange rates for non-US investors.

Schwab S&P 500 Index Fund

• Morningstar Medalist Rating

  : Gold

• : ★★★★

This $134.7 billion fund has gained 38.62% over the past year, while the average fund in its category is up 35.08%. The Charles Schwab fund, launched in May 1997, has climbed 21.18% over the past three years and gained 12.69% over the past five years.

The S&P 500 selects 500 of the largest US companies that pass its liquidity and profitability screens. Companies are eligible for inclusion only when the sum of their GAAP earnings over the past four quarters is positive, as well as in the most recent quarter. Screening for profitability imparts a slight quality tilt to the portfolio. There have been instances where the profitability screen prevented otherwise qualified companies from index inclusion. Most notably, Tesla was first added to the index in December 2020, despite passing the liquidity and market-cap thresholds in January 2013. Once the index committee selects stocks, it weights them by market cap.

Market-cap weighting is a sensible approach for the US stock market. Highly traded stocks usually reflect new information quickly, and market-cap weighting requires minimal trading costs, which can detract from returns. It follows the wisdom of crowds and takes the guesswork out of stock selection. The US stock market has historically produced solid long-term gains, and owning about 80% of the market has allowed investors to capitalize on those gains. Should strong market performance continue, the fund is well-positioned to reap those rewards.

Market-cap weighting tilts the index toward the largest and most established names. Companies with wide or narrow Morningstar Economic Moat Ratings dominate the portfolio, showcasing the strategy’s durability. Holding 500 stocks reduces the opportunity cost of missing out on strong performers, too. When a portfolio owns a greater chunk of the US stock universe, it has a better chance of capturing gains from companies that end up driving returns. Concentrated active funds are more likely to miss out if those stocks are excluded from their narrow portfolios.

Large allocations to the biggest names in the US stock market present some concentration risk, but the index simply represents the market. While higher concentration may be a concern for investors, there isn’t a clear relationship between index performance and market concentration. In addition, the largest companies, such as Apple and Microsoft, often have diversified business lines, so they don’t rely on a single product, service, or market to determine company success.

Vanguard 500 Index Fund

• Morningstar Medalist Rating

  : Gold

• : ★★★★

Over the past year, this Vanguard fund rose 38.63%, while the average fund in its category rose 35.08%. The fund, launched in June 2016, has climbed 21.21% over the past three years and 12.71% over the past five.

Vanguard S&P 500 accurately represents the large-cap US stock market, allowing its low fee and efficient portfolio to carve it a long-term edge.

The fund tracks the S&P 500. A committee selects 500 of the largest US stocks, or roughly 80% of the US stock market, and weights them by market cap. The index committee has discretion over selecting companies that meet its liquidity and profitability standards. While a committee-based approach may lack clarity, it adds flexibility to reduce unnecessary changes during reconstitution, taming transaction costs compared with more rigid rules-based indexes.

The US exchange-traded fund share class returned 14.8% annualized over the past 10 years through year-end 2025. It holds little cash, which should help it outperform cash-saddled active peers during market rallies. Likewise, low cash drag could hurt this fund when the stock market declines, but long-term positive returns give this efficient approach a clear edge. Performance across share classes will vary owing to differences in fees and currency exchange rates for non-US investors.

Vanguard PrimeCap Fund

• Morningstar Medalist Rating

  : Gold

• : ★★★★★

This $72.4 billion fund has climbed 54.38% over the past year, outperforming the average fund in its category, which rose 35.08%. The Vanguard fund, launched in November 2001, has climbed 23.09% over the past three years and 12.89% over the past five.

This fund, which has spent time in both the large-blend and large-growth Morningstar Categories over the past 20 years, is one of six mutual funds overseen by subadvisor Primecap Management that stands out in many positive ways. Primecap is led by investors, not marketers, and keeps its focus on research and portfolio management. Its investment team is well-stocked with industry veterans and newcomers hired for their intellect, curiosity, and range of professional perspectives. The firm is mindful of company valuation, prizes unconventional thinking, and pursues stocks off the beaten path.

The firm is also unique for its extreme patience. It often holds stocks for a decade or more, a rare trait that can pay off when it backs firms with competitive moats, rising earnings, or skilled leadership. Top holding Eli Lilly is a case in point. A long-term orientation also works when a company suffers a steep share-price drop, but its troubles are fixable and fleeting.

But patience has been a double-edged sword for Primecap, whose convictions have sometimes hardened into obstinacy even as investment theses flopped. Corporate executives can prove themselves poor stewards; rivals sometimes erode once-mighty franchises; companies’ sales slide; debt piles up; or a bargain-basement takeover ends the growth story that Primecap was banking on. In these cases, holding firm becomes damaging as the stocks’ prices fall and potential gains elsewhere are foregone.

Mistakes like these explain much of the firm’s lackluster returns over the past five years. It has also faced some stylistic headwinds, with a contrarian bent and slight bias toward smaller-cap companies that have lagged in a market enthralled by momentum and mega caps. Even so, the firm’s longer-term track record is admirable, helped by its research-focused culture and Vanguard’s low expense ratio. For investors seeking a differentiated approach to large-cap investing, this fund remains a worthy holding.