Quantitatively driven mutual funds provide investors with professionally managed portfolios that use statistically, mathematically or computer-driven models to determine their portfolio allocations. Quantitative mutual funds generally seek to provide long-term capital appreciation while generating alpha against a benchmark index. These four quantitative funds charge low annual expense ratios while providing professional risk management and asset screening processes.
Bridgeway Managed Volatility Fund (BRBPX)
The Bridgeway Managed Volatility Fund is a quantitatively driven fund; its model is based off of its proprietary statistically driven model to select equities from various investment strategies, such as growth and value. Additionally, the stock may invest in fixed-income securities, futures and options. Under all circumstances, the fund allocates at least 25% of its total net assets in equities, which may include non-U.S. equities. Under normal market conditions, the fund invests at least 25% of its total net assets in fixed-income securities.
As of Dec. 31, 2015, the Bridgeway Managed Volatility Fund holds 284 assets. Its top holdings include Facebook, Gilead Sciences, Apple and Exxon Mobil. The fund has a beta against the S&P500 Index of 0.31, which indicates it is theoretically less volatile than the index. When compared to alternative no-load mutual funds, the Bridgeway Managed Volatility Fund has a low annual net expense ratio of 0.94%.
Fidelity Small Cap Enhanced Index Fund (FCPEX)
The Fidelity Small Cap Enhanced Index Fund seeks to provide capital appreciation by using computer-driven quantitative analysis to invest in stocks with the potential to outperform the Russell 2000 Index, its benchmark index. Under normal market conditions, the fund invests at least 80% of its total net assets in constituents of its benchmark index. The fund typically uses computer-aided analysis to compare historical growth, profitability and valuation, as well as other specifications to select a diverse portfolio.
Vanguard Strategic Equity Fund (VSEQX)
The Vanguard Strategic Equity Fund is a quantitatively driven and actively managed fund that focuses on small- and mid-cap stocks with the potential to have abnormally high growth potentials. The fund charges a low annual expense ratio of 0.21%, which is 82% less than the average expense ratio of mid-cap no-load funds. The fund's advisor, the Vanguard Equity Investment Group, uses a proprietary computer-based equity selection process to build a portfolio with similar risk characteristics to those of its benchmark index, the MSCI U.S. Small + Mid Cap 2200 Index.
Columbia Large Cap Enhanced Core Fund Class A (NMIAX)
The Columbia Large Cap Enhanced Core Fund seeks to generate alpha against the S&P500 Index, its benchmark index. To achieve its investment objective, the fund's advisors implement quantitative analysis techniques to determine which securities belong in the fund's portfolio. Under normal market conditions, the fund invests at least 80% of its total net assets in common stocks comprising its benchmark index. However, it may invest in stocks that are not included in the S&P500 Index, as well as derivative securities. The fund charges an annual net expense ratio of 0.89%, which is in line with the average expense ratio of large-cap no-load mutual funds.