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3 Small-Cap Value Mutual Funds for Rewarding Returns
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A small-cap value fund is a good choice for investors seeking diversification across sectors and companies, and focusing on gaining exposure to stocks trading at a discount. Investors with a high-risk appetite tend to invest in these funds. 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 can subsequently see an increase in market capitalization.
Value stocks are those that trade at a price lower than their fundamentals (i.e., earnings, book value, and debt equity). It is a common practice to invest in value funds for income or yield.
However, not all value funds comprise only those companies that primarily use their earnings to pay out dividends. Investors interested in picking value funds for yield should check the mutual fund yield, which is the total dividend payout divided by the value of the mutual fund’s shares.
Bridgeway Small Cap Value Fund invests most of its assets, along with borrowings, if any, in a well-diversified portfolio of small-cap value stocks that are listed on the New York Stock Exchange, NYSE American, and NASDAQ at the time of purchase. BRSVX advisors choose to invest in stocks based on a statistical approach.
Bridgeway Small Cap Value Fund has a three-year annualized return of 39.9%. John N.R. Montgomery has been one of the fund managers of BRSVX since 2003.
Vericimetry U.S. Small Cap Value Fund invests in various small-cap value stocks in the United States and is well diversified. VYSVX advisor typically determines the desired weighting of U.S. small-cap value shares for purchase using a market capitalization-weighted method.
Vericimetry U.S. Small Cap Value Fund has a three-year annualized return of 18.7%. VYSVX held 0.87% of its assets invested in Murphy Oil as of Dec 31, 2022.
Franklin Small Cap Value Fund invests most of its assets in small capitalization companies, which its fund manager believes are currently undervalued and have the potential for significant capital appreciation. Every year, FRVLX distributes dividends and capital gains.
Franklin Small Cap Value Fund has a three-year annualized return of 14.4% as of Feb 28, 2023. FRVLX has an expense ratio of 0.98% compared with the category average of 1.16%.
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3 Small-Cap Value Mutual Funds for Rewarding Returns
A small-cap value fund is a good choice for investors seeking diversification across sectors and companies, and focusing on gaining exposure to stocks trading at a discount. Investors with a high-risk appetite tend to invest in these funds. 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 can subsequently see an increase in market capitalization.
Value stocks are those that trade at a price lower than their fundamentals (i.e., earnings, book value, and debt equity). It is a common practice to invest in value funds for income or yield.
However, not all value funds comprise only those companies that primarily use their earnings to pay out dividends. Investors interested in picking value funds for yield should check the mutual fund yield, which is the total dividend payout divided by the value of the mutual fund’s shares.
Below, we share with you three top-ranked small-cap value mutual funds, namely, Bridgeway Small Cap Value Fund (BRSVX - Free Report) , Vericimetry U.S. Small Cap Value Fund (VYSVX - Free Report) and Franklin Small Cap Value Fund (FRVLX - Free Report) . Each has 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 Small Cap Value mutual funds.
Bridgeway Small Cap Value Fund invests most of its assets, along with borrowings, if any, in a well-diversified portfolio of small-cap value stocks that are listed on the New York Stock Exchange, NYSE American, and NASDAQ at the time of purchase. BRSVX advisors choose to invest in stocks based on a statistical approach.
Bridgeway Small Cap Value Fund has a three-year annualized return of 39.9%. John N.R. Montgomery has been one of the fund managers of BRSVX since 2003.
Vericimetry U.S. Small Cap Value Fund invests in various small-cap value stocks in the United States and is well diversified. VYSVX advisor typically determines the desired weighting of U.S. small-cap value shares for purchase using a market capitalization-weighted method.
Vericimetry U.S. Small Cap Value Fund has a three-year annualized return of 18.7%. VYSVX held 0.87% of its assets invested in Murphy Oil as of Dec 31, 2022.
Franklin Small Cap Value Fund invests most of its assets in small capitalization companies, which its fund manager believes are currently undervalued and have the potential for significant capital appreciation. Every year, FRVLX distributes dividends and capital gains.
Franklin Small Cap Value Fund has a three-year annualized return of 14.4% as of Feb 28, 2023. FRVLX has an expense ratio of 0.98% compared with the category average of 1.16%.
To view the Zacks Rank and the past performance of all small-cap value mutual funds, investors can click here to see the complete list of small-cap value mutual funds.
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