At the beginning of the second quarter of 2015, only the Large Cap Value and Large Cap Blend styles earn our Attractive rating. Our style ratings are based on the aggregation of our fund ratings for every ETF and mutual fund in each style.

Investors looking for style funds that hold quality stocks should look no further than the Large Cap Value and Large Cap Blend styles. These styles house the most Attractive-or-better rated funds. Figures 6 and 7 provide details. The primary driver behind an Attractive fund rating is good portfolio management, or good stock picking, with low total annual costs.

Note that the Attractive-or-better overall ratings do not always correlate with Attractive-or-better total annual costs. This fact underscores that (1) cheap funds can dupe investors and (2) investors should invest only in funds with good stocks and low fees.

See Figures 4 through 13 for a detailed breakdown of ratings distributions by investment style.

Figure 1: Ratings For All Investment Styles

To earn an Attractive-or-better Predictive Rating, an ETF or mutual fund must have high-quality holdings and low costs. 2151 style ETFs and mutual funds meet these requirements, which is 30% of all style ETFs and mutual funds.

Catalyst Lyons Tactical Allocation Fund (CLTIX) is our top All Cap Blend Mutual Fund. It gets our Very Attractive rating by allocating over 53% of its value to Attractive-or-better-rated stocks.

Home Depot (HD) is one of our favorite stocks held by CLTIX. Home Depot has achieved outstanding financial results since the housing market meltdown of 2008. Since 2009, net operating profit after tax (NOPAT) has grown by 11% compounded annually. Return on invested capital (ROIC) over this period has averaged 15% and has grown every year since 2010 a top quintile 19% in 2015. Free cash flow performance has been just as admirable. Since 2008, the company has generated a cumulative $40 billion in free cash flow, and the company generated $3 billion in free cash flow in 2014 alone. Economic earnings for the company have been positive every year since 2008. Home Depot has a consistent and reliable track record of creating shareholder value and wealth.