Value took a break from its 2016 dominance in the first half of 2017, and bigger became even better.
The S&P Large Cap Growth Index has returned 16.6 percent year to date, while the S&P Large Cap Value Index has returned 5.7 percent.
Growth funds dominate a list of the best-performing large-cap funds between January 3 and June 30, according to data from Chicago-based Morningstar and New York-based Bloomberg. Of the top 10 large-cap performers in the first half of the year, in fact, all of them are growth funds, according to Morningstar.
While the best performances were posted by active mutual funds, investors would also have been well served investing in passive large-cap growth strategies. For example, share prices for the iShares S&P 500 Growth ETF grew by 11.6 percent through the first half of 2017. Similarly, the Vanguard Growth ETF, which tracks a large-cap growth index from MSCI, posted 14.75 percent gains in the first half of the year.
Even though the 10 funds on our list invested primarily in the same universe of mega-cap companies, they vary widely in size and exclusivity.
The following list presents the funds and first-half gains in ascending order of performance:
9 (tie). Touchstone Large Company (TSAGX), 28 percent
Touchstone acquired the fund as part of its purchase of DSM Capital Partners, rebranding and reorganizing the product shortly after the acquisition. Thus, no three-year performance numbers were available for TSAGX.
TSAGX's top holdings include Alibaba, Tencent, Facebook, Alphabet and Regeneron. The fund currently has $209.5 million in assets and carries an expense ratio of 123 basis points. TSAGX's minimum investment is $2,400.
9 (tie). Touchstone Sands Capital (PTSGX), 28 percent
PTSGX returend 28 percent over the first half of 2017, with three-year returns of -6.7 percent.
PTSGX's top holdings include Amazon, Visa, Facebook, Priceline and Salesforce. The fund currently has $2.5 billion in assets with a 1.04 percent expense ratio.
8. Fidelity OTC (FOCPX), 28.1 percent
Fidelity's OTC fund returned 28.1 percent through the first half of 2017, with three-year returns of 30.5 percent.
Tesla, Apple, Amazon, Alphabet and Activision Blizzard make up the fund's top holdings. The fund carries a 91 basis point expense ratio, and currently has $15.3 billion in assets.
7. Edgewood Growth (EGFIX), 28.7 percent
The Edgewood Frowth Fund posted 28.7 percent returns through the first half of 2017, with 40.6 percent three-year returns.
EGFIX's top holdings include Facebook, Amazon, Celgene, Visa and Priceline. The fund currently has $19.2 billion in assets, a $100,000 minimum investment and a 1 percent expense ratio.
6. Franklin Dynatech (FKDNX), 29.1 percent
The Franklin Dynatech fund returned 29.1 percent during the first half of 2017, with three-year returns of 37.2 percent.
FKDNX counts Amazon, Facebook, Alphabet, Mastercard and Visa among its largest holdings. The fund currently has $3.7 billion in assets, a $1,000 minimum investment and an expense ratio of 91 basis points.
5. Baron Fifth Avenue Growth (BFTHX), 30.6 percent
Baron's Fifth Avenue Growth Fund posted first half returns of 30.6 percent, and three year returns of 41.3 percent.
BFTHX's largest holdings include Amazon, Alibaba, Facebook, Alphabet and Equinix. The fund currently has $173.8 million in assets, and carries a 1.1 percent expense ratio.
4. Morgan Stanley Inst Growt (MSEQX), 30.7 percent
The Morgan Stanley Institutional Growth Fund enjoyed a 30.7 percent return in the first half of 2017, posting three-year returns of 17.3 percent through June 30.
MSEQX's largest holdings include Amazon, Facebook, Alphabet, Tesla and Illumina. The fund currently has $4 billion in assets and carries an expense ratio of 63 basis points.
3. Morgan Stanley Capital Opportunities Trust (CPOAX), 33.1 percent
Morgan Stanley's multi-cap growth Capital Opportunities Trust, biased towards large caps, returned 33.1 percent during the first half of 2017, and posted three year returns of 12.4 percent.
CPOAX's top holdings include Amazon, Facebook, Alphabet, Tesla and Illumina. The fund currently has $388.2 million in assets, with a 1.24 percent expense ratio.
2. Transamerica Capital Growth 1 (TFOIX), 34.4 percent
Through the first half of 2017, TFOIX returned 34.4 percent, posting a three-year return of 17.4 percent.
TFOIX's top investments include Amazon, Facebook, Alphabet and Priceline. The fund currently has $797 million in assets, a $1 million minimum investment and carries an expense ratio of 94 basis points.
1. Zevenbergen Genea Institutional (ZVGIX), 44.4 percent
Through the first half of 2017, the fund returned 44.4 percent. With barely a year of existence under its belt, no three-year performance numbers are available for ZVGIX.
ZVGIX's top investments include Tesla, Amazon, Netflix, MercadoLibre and ZillowGroup. The fund has $6.4 million in assets and carries an expense ratio of 1.11 percent. The fund has a minimum investment of $250,000.
