Investors interested in comparatively less risky returns through exposure to both growth and value securities may opt for mid-cap blend mutual funds. While mid-cap funds are expected to offer the best of both large- and small-cap ones, blend funds, also known as “hybrid funds,” aim for value appreciation by capital gains. Companies with market capitalization between $2 billion and $10 billion are generally considered mid-cap firms.
Moreover, mid-cap funds are believed to provide higher returns than their large-cap counterparts while witnessing a lower level of volatility than the small-cap ones. Meanwhile, blend funds provide significant exposure to both growth and value stocks. These funds owe their origin to a graphical representation of a fund’s equity-style box.
Below, we will share with you three mid-cap blend mutual funds, namely Vanguard Strategic Equity VSEQX, U.S. Vector Equity Portfolio DFVEX and Ave Maria Value AVEMX. Each has earned a Zacks Mutual Fund #1 Rank (Strong Buy), as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all mid-cap blend funds, investors can click here to see the complete list of funds.
Vanguard Strategic Equity fund invests most of its net assets in small and mid-cap U.S. companies, which, according to its advisors, have the right balance between strong growth prospects and reasonable valuations relative to their industry peers. VSEQX advisors use quantitative techniques to evaluate all securities using the MSCI U.S. Small + Mid Cap 2200 Index as the benchmark index, with a risk profile similar to that of the index.
Vanguard Strategic Equity fund has three-year annualized returns of 12.7%. As of the end of March 2025, VSEQX had 585 issues and invested 0.8% of its net assets in Essex Property Trust.
U.S. Vector Equity Portfolio fund invests most of its net assets in a well-diversified and broad group of U.S. operating companies, preferably in smaller-capitalization, lower relative price and higher-profitability companies in the United States. DFVEX advisors generally define the U.S. Universe as a set of U.S. operating companies listed on a securities exchange in the country that are market-capitalization weighted.
U.S. Vector Equity Portfolio fundhas three-year annualized returns of 11.6%. DFVEX has an expense ratio of 0.27%.
Ave Maria Value Fund invests most of its net assets in common stocks, preferred stocks and securities convertible into common stock in companies meeting its religious criteria, irrespective of their market capitalization. AVEMX chooses to invest in companies that its advisors believe are priced at a discount to their true value.