MUTUAL FUNDS: Our Seven Favorite Large-Company Funds

摘要

Shares of big firms look cheap compared with their small-company brethren. That makes these standouts especially attractive now. SMALL COMPANIES HAVE BEEN LEADING the performance derby lately, and that's one reason it may be time to turn your attention to the big guys. Over the past year, the Russell 2000 index, a measure of small-company stocks, returned 40%, walloping the large-company-oriented Standard & Poor's 500-stock index by 12 percentage points. On the basis of price to expected earnings, large-capitalization stocks are now 20% cheaper than their small-cap brethren, says strategist Ed Yardeni.