The Vanguard Explorer Value Fund opened its doors to investors this week for the first time. The offering, which will probably hold fewer than 200 stocks, is the company s only actively-managed value fund that concentrates on small and midsize companies. It will charge about a 0.59% annual expense ratio, which Vanguard says is considerably lower than the average 1.56% comparable small-cap funds charge.

Morningstar s database lists almost 1,200 funds that have launched over the last 12 months. Among them, there is a new international fund from Hussman and a new bond offering from Fairholme. The manager behind the successful FBR Focus fund has launched AKRE Focus. Royce just opened its Mid Cap fund, the first medium-sized company offering from the small-cap investment shop.

New funds often go undetected by investors. One reason is the sheer volume of new offerings launched every year. It s difficult to keep up with the new products on the market. Financial advisors usually shy away from putting money in unproven funds and instead favor funds that have years of performance numbers under their belts. In many cases, the new funds are simply new share classes of existing ones, making for an alphabet soup that can confuse investors.

To construct our screens each week, we focus on equity funds that have above-average three- and five-year performance track records. That means new funds never make the cut. This week, though, we are breaking with tradition to give the new kids on the block some time in the spotlight. The seven funds below are just a sampling of the total new launches. They feature cheap fees and do not charge a sale load.

In general, we have a hard time recommending new funds as investments. There is a reason why performance is such a critical component to picking a fund. Investors want to make sure a manager and his investment strategy work. Of course, that is no guarantee of future performance, but it's a good starting place. New funds can also experience growing pains as they try to attract assets and build out their portfolios.

Although these funds may not be ideal investments at this early stage, it pays to keep an eye on what fund companies are putting out on the market. For example, earlier in the last decade dividend-focused funds were a trend when the government changed tax laws. A few years ago, energy funds were hot when oil prices skyrocketed and alternative energy became a topic of debate. Target-date offerings and ETFs are frequent new funds.

A new fund can round out a fund company s lineup, which can help customers save time and money when building their portfolios. It can also be a vehicle for a proven manager going out on his own. That is what's happening at Akre Focus. Morningstar analyst Ryan Leggio calculated manager Chuck Akre chalked up an average annualized return of 12.3% during a 12-year stint running FBR Focus. Now he is employing the same investment strategy at this new offering. A similar situation is playing out at Wintergreen.

Criteria: We picked seven funds that have launched during the last 12 months. Although we couldn t evaluate them on performance, we screened them for low fees and expenses. We also put an emphasis on manager or fund company reputation. Because these funds are new, we would be hesitant about rushing into many of them.