The Large Cap Blend style ranks second out of the twelve fund styles, as detailed in our Q4'20 Style Ratings for ETFs and Mutual Funds report. Last quarter, the Large Cap Blend style ranked third. It gets our Attractive rating, which is based on an aggregation of ratings of 61 ETFs and 661 mutual funds in the Large Cap Blend style. See a recap of our Q3'20 Style Ratings here.
Figures 1 and 2 show the best- and worst-rated ETFs and mutual funds in the style. Not all Large Cap Blend style ETFs and mutual funds are created the same. The number of holdings varies widely (from 15 to 1900). This variation creates drastically different investment implications and, therefore, ratings.
Investors seeking exposure to the Large Cap Blend style should buy one of the Attractive-or-better rated ETFs or mutual funds from Figures 1 and 2.
Figure 1: ETFs with the Best and Worst Ratings
(Sources: New Constructs, LLC and company filings)
The Columbia Research Enhanced Core ETF (RECS) is excluded from Figure 1 because its total net assets (TNA) are below $100 million and do not meet our liquidity minimums.
Figure 2: Mutual Funds with the Best and Worst Ratings - Top 5
(Sources: New Constructs, LLC and company filings)
The Xtrackers Russell 1000 U.S. Quality at a Reasonable Price ETF (QARP) is the top-rated Large Cap Blend ETF, and the Davis New York Venture Fund (DNVYX) is the top-rated Large Cap Blend mutual fund. Both earn a Very Attractive rating.
The First Trust Mega Cap AlphaDEX Fund (FMK) is the worst-rated Large Cap Blend ETF, and the Dow Jones Industrial Average Fund (RYDAX) is the worst-rated Large Cap Blend mutual fund. FMK earns a Neutral rating and RYDAX earns an Unattractive rating.
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