Investment Objective and Strategy
Is this fund a good choice for me?
The Value Fund may be appropriate if your goal is to grow your savings over the next several years by investing in U.S. companies with relatively inexpensive stock prices. You’re also comfortable with temporary — yet sometimes dramatic — fluctuations in your account balance based on the performance of the underlying stocks.
Investment objective and strategy
The fund primarily seeks long-term growth of capital and secondarily current income for the long-term investor and invests in stocks of companies selling below what RE Advisers believes to be their fundamental value. To determine whether a stock is undervalued, RE Advisers considers, among other factors, potential earning power, financial debt ratios and any competitive advantages a company may have. Under ordinary conditions, the fund will invest at least 80% of its net assets in common stocks of companies with market capitalizations of $2 billion or greater.
|Inception||November 19, 1990|
|Benchmark||Russell 1000 Value Index|
|Fee Structure||No Load|
|Expense Ratio||0.65% (Net 0.65%) (12/31/2020)|
|Median Expense Ratio for Peer Group||1.07% (12/31/2020)|
The expense ratio shows the percentage of fund assets deducted annually to cover operating costs. Fund expense ratios shown here do not include acquired fund fees and expenses. If applicable, these additional costs are disclosed in the prospectus. For some funds, the investment advisor has agreed voluntarily or contractually (for at least the current fiscal year) to waive or reimburse a portion of expenses. The net expense ratio is the expense ratio minus the portion of expenses waived or reimbursed. Please see the current prospectus for additional details. The peer ratio is according to Morningstar Direct, based on each fund’s Morningstar classification.
As of 12/31/2021
Calendar-Year Total Returns
The total returns shown above represent past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. For performance data current to the most recent month-end, call 800.258.3030 or visit homesteadfunds.com
Total returns include interest, capital gains, dividends and distributions.
Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk. Value stocks are subject to the risk that returns on stocks within the style category will trail returns of stocks representing other styles or the market overall.
The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. Indices are unmanaged, and investors cannot invest directly in an index. Unless otherwise noted, performance of indices does not account for any fees, commissions or other expenses that would be incurred. Returns include reinvested dividends.
Growth of $10,000
The line graph is a comparison of the change in value of a $10,000 investment in the fund and the Russell 1000 Value Index over a 10-year period. The chart represents past performance, which is no guarantee of future results. Current performance may be higher or lower than that shown above. Returns and the principal value of your investment will fluctuate such that shares, when redeemed, may be worth more or less than their original cost. The fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares.
For the month ending 12/31/2021
*Overall, out of 1,143 funds, according to risk-adjusted return
1Overall, out of 351 funds, according to historical total return
2Overall, out of 351 funds, according to historical risk-adjusted returns adjusted for volatility
3Overall, out of 96 funds, according to expense minimization
Lipper ratings for Total Return reflect the fund’s historical total return performance relative to peers as of month ending 12/31/21. Lipper ratings for Consistent Return reflect the fund’s historical risk-adjusted returns, adjusted for volatility, relative to peers as of month ending 12/31/21. Lipper ratings for Expense reflect the fund’s expense minimization relative to peers with similar load structures as of month ending 12/31/21. The Lipper ratings are subject to change every month and are based on an equal-weight average of percentile ranks for the Total Return, Consistent Return and Expense metrics over three-year, five-year, 10-year and overall periods. The highest 20% of funds in each peer group are named Lipper Leader or a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2, and the lowest 20% are scored 1. Homestead Value Fund, in Lipper’s multi-cap value classification, received a rating of 5 for the five-year, 10-year and overall periods and a rating of 4 for the three-year period (number of funds rated in parentheses): Total Return: Three-year (351 funds), Five-year (333 funds), 10-year (278 funds) and Overall (351 funds). Consistent Return: Three-year (351 funds), Five-year (333 funds), 10-year (278 funds) and Overall (351 funds). Homestead Value Fund, in Lipper’s multi-cap value classification, received a rating of 5 for the three-year, five-year and overall periods and a rating of 4 for the 10-year period (number of funds rated in parentheses): Expense: Three-year (96 funds), Five-year (96 funds), 10-year (88 funds) and overall (96 funds). Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at lipperleaders.com.
Morningstar rated this fund, in Morningstar’s large-value category, 5 stars for the overall period out of 1,143 funds, 5 stars for the 10-year period out of 755 funds, 4 stars for the five-year period out of 1,036 funds and 4 stars for the three-year period out of 1,143 funds for performance month ending 12/31/21. The Morningstar Rating for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-ended funds and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-year, five-year, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
©2021 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Ratings are updated regularly. More information is available at morningstar.com.
Share Price History
As of 01/18/2022
The chart plots daily share prices for the last 10 years. The interactive calendar will retrieve the share price for any business day since the fund's inception.
As of 12/31/2021
Top 10 Holdings
As of 12/31/2021
|JPMorgan Chase & Co.||4.7%|
|Honeywell International, Inc.||4.0%|
|Avery Dennison Corp.||3.8%|
|Bank of America Corp.||3.1%|
|Goldman Sachs Group, Inc.||2.8%|
Portfolio holdings are subject to change without notice.
As of 12/31/2021
|Number of Holdings||50|
Income and/or capital gains distributions for this fund, if any, are listed in the table below for the current and previous calendar year. Mutual funds are required to pass through to their shareholders substantially all of the interest income and capital gains earned by the fund during the year. These distributions are paid on a regular schedule as shown in the table below.
2021 Earnings Distribution
|Distribution Type||Record Date||Declaration Date||$/Per Share|
|Long-Term Capital Gains||6/29/21||6/30/21||$0.2977|
|Long-Term Capital Gains||12/15/21||12/16/21||$3.6628|
|Short-Term Capital Gains||12/15/21||12/16/21||$0.0982|
The record date is the date on which you must be a shareholder in order to receive a portion of the fund’s distribution.
The declaration date, typically the business day after the record date, is the date the amount of the distribution is announced and deducted from fund assets. On this day, the amount of the distribution is deducted from fund assets and calculated as a per share amount to be passed through to shareholders. The fund’s share price will decline by the amount of the distribution (plus or minus any share price change related to market activity). The following business day, shareholders will see their portion of the distribution posted to their account as either a cash dividend or dividend reinvestment.