3 / 5 Stars
3 3 4 1 4
Zacks Investment Research
Standard & Poor's
3 / 5 Stars
U.S. News evaluated 221 Mid-Cap Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
Note: Profile written for different share class.
The fund has returned 19.15 percent over the past year, 10.05 percent over the past three years, 22.86 percent over the past five years, and 9.59 percent over the past decade.
|Trailing Returns||Updated 03.31.2014|
|Year to date||0.9%|
|3 Years (Annualized)||10.1%|
|5 Years (Annualized)||22.9%|
|10 Years (Annualized)||9.6%|
Ivy Mid Cap Growth rarely jumps to the front of the pack, but its steady performance has served investors well.
As of April 22, 2014, the fund has assets totaling almost $4.78 billion invested in 100 different holdings. Its portfolio consists primarily of shares of mid-cap companies.
This fund looks for growth opportunities in mid-cap companies with strong business models and innovative services. In 2010, the fund finished near the top of its category. The fund's focus on creativity and innovation is evident at the top of its portfolio. For instance, one of its top holdings is Whole Foods, whose shares have appreciated tremendously since the start of 2009. Whole Foods is also representative of the fund's overweight to consumer services picks. Other names in that sector that are working out well for the fund include Fastenal Company and PetSmart. The fund has returned 19.15 percent over the past year and 10.05 percent over the past three years.
This fund doesn't have a reputation for being a high flyer. Since its 2000 launch, the fund has never finished a year in the top 10 percent of Morningstar's mid-cap growth category. Still, its relatively steady performance has nonetheless rewarded patient investors handsomely. As of the end of the first quarter, the fund's trailing 10-year returns beat those of the S&P 500 by an average of 4 percentage points per year. The fund has returned 22.86 percent over the past five years and 9.59 percent over the past decade.
According to the fund's prospectus: "Under normal market conditions, the Fund invests at least 80% of its net assets in the securities of mid-cap companies, which typically are companies with market capitalizations that may range between $1 billion and $10 billion. In selecting securities for the Fund, [management] emphasizes a bottom-up approach and may look at a number of factors in its consideration of a company, such as: new or innovative products or services, adaptive or creative management, strong financial and operational capabilities to sustain growth, stable and consistent revenue, earnings and cash flow, market potential, and profit potential."
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
Kimberly Scott manages the fund.
Ivy Mid Cap Growth Fund has an expense ratio of 2.21 percent.
Like all stock funds, this one comes with some risks.