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3 Small-Cap Growth Mutual Funds for Spectacular Returns
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Small-cap funds generally invest in companies having a market cap of less than $2 billion. The companies, smaller in size, offer growth potential, and their market capitalization may increase subsequently. Less international exposure makes small-cap funds less vulnerable to a stronger U.S. dollar.
Though small-cap stocks are believed to provide greater returns, they are also expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Risky investors who prefer capital appreciation over dividend payout may consider small-cap growth mutual funds. Growth funds focus on realizing an appreciable amount of capital growth by investing in stocks projected to rise in value over the long term. Meanwhile, small-cap funds are good choices for investors seeking diversification across different sectors and companies.
AMG GW&K Small/Mid Cap Fund seeks to provide investors with long-term capital appreciation. GWGIX invests the majority of its net assets, plus the amount of any borrowings for investment purposes, in equity securities of small-cap and mid-cap companies. It primarily invests in common and preferred stocks.
AMG GW&K Small/Mid Cap Fund has a three-year annualized return of 14.5%. As of September 2022, GWGIX held 87 issues, with 2.5% of its assets invested in BJ’s Wholesale Club.
DFA - U.S. Small Cap Growth Portfolio invests most of its assets in securities of small-cap U.S. companies having high profitability and relative prices compared to other U.S. small-cap companies. DSCGX advisors generally invest in a portfolio of a broad and diverse group of readily marketable securities.
DFA - U.S. Small Cap Growth Portfolio has three-year annualized returns of 14.9%. DSCGX has an expense ratio of 0.33% compared with the category average of 1.21%.
Loomis Sayles Small Cap Growth Fund invests the majority of its net assets in the equity securities of small-cap companies. LCGRX defines a small-cap company as one whose market cap falls within the capitalization range of the Russell 2000 Index, which tracks the 2000 smallest U.S. stocks.
Loomis Sayles Small Cap Growth Fund has a three-year annualized return of 8.8%. Mark F. Burns has been one of the fund managers of LCGRX since 2005.
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3 Small-Cap Growth Mutual Funds for Spectacular Returns
Small-cap funds generally invest in companies having a market cap of less than $2 billion. The companies, smaller in size, offer growth potential, and their market capitalization may increase subsequently. Less international exposure makes small-cap funds less vulnerable to a stronger U.S. dollar.
Though small-cap stocks are believed to provide greater returns, they are also expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Risky investors who prefer capital appreciation over dividend payout may consider small-cap growth mutual funds. Growth funds focus on realizing an appreciable amount of capital growth by investing in stocks projected to rise in value over the long term. Meanwhile, small-cap funds are good choices for investors seeking diversification across different sectors and companies.
Below, we share with you three top-ranked small-cap growth mutual funds, namely AMG GW&K Small/Mid Cap Fund (GWGIX - Free Report) , DFA - U.S. Small Cap Growth Portfolio (DSCGX - Free Report) and Loomis Sayles Small Cap Growth Fund (LCGRX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
AMG GW&K Small/Mid Cap Fund seeks to provide investors with long-term capital appreciation. GWGIX invests the majority of its net assets, plus the amount of any borrowings for investment purposes, in equity securities of small-cap and mid-cap companies. It primarily invests in common and preferred stocks.
AMG GW&K Small/Mid Cap Fund has a three-year annualized return of 14.5%. As of September 2022, GWGIX held 87 issues, with 2.5% of its assets invested in BJ’s Wholesale Club.
DFA - U.S. Small Cap Growth Portfolio invests most of its assets in securities of small-cap U.S. companies having high profitability and relative prices compared to other U.S. small-cap companies. DSCGX advisors generally invest in a portfolio of a broad and diverse group of readily marketable securities.
DFA - U.S. Small Cap Growth Portfolio has three-year annualized returns of 14.9%. DSCGX has an expense ratio of 0.33% compared with the category average of 1.21%.
Loomis Sayles Small Cap Growth Fund invests the majority of its net assets in the equity securities of small-cap companies. LCGRX defines a small-cap company as one whose market cap falls within the capitalization range of the Russell 2000 Index, which tracks the 2000 smallest U.S. stocks.
Loomis Sayles Small Cap Growth Fund has a three-year annualized return of 8.8%. Mark F. Burns has been one of the fund managers of LCGRX since 2005.
To view the Zacks Rank and the past performance of all small-cap growth mutual funds, investors can click here to see the complete list of small-cap growth mutual funds.
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