Large Cap Value


Portfolio Role

Large cap value stocks represent established companies that may be considered undervalued by investors relative to their true worth.  Some research has shown that purchasing value stocks can provide superior returns more often than not.  Also, for those pursuing dividend strategies value stocks have a high correlation to high-dividend stocks.  


Market Coverage

Large cap value covers the largest 70% of the market.  It is further filtered to only contain the cheap half of the market sorted by book-to-market.



Note that “value” is somewhat subjective and can be determined by a variety of measures, so be sure to understand how your particular fund selects companies for the index.

One interesting quality of large cap value is that it weathered the 70’s noticeably better than its large cap blend and growth alternatives.  Whether that is repeatable is anyone’s guess, but it’s something to consider when looking for good options during tough times.

Many large cap index funds also contain a good number of mid caps and extend to the top 85% of the market.  This shouldn’t affect performance too much, but be sure to understand the composition of any fund you buy.  

Stocks on the site are labeled with either a blue or a red color.  Red is for domestic stocks and blue is for international stocks.  Note that the color may change for the exact same asset based on your home country.


Portfolios containing large cap value funds