We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Buy These 3 Small-Cap Blend Mutual Funds for Steady Returns
Read MoreHide Full Article
Investors with a high-risk appetite and an interest in growth and value investing may choose small-cap blend mutual funds to boost their portfolio. While blend funds, also known as "hybrid funds," aim for value appreciation through capital gains, small-cap funds have higher growth prospects than their large and medium counterparts. Blend funds provide significant exposure to both growth and value stocks, and owe their origin to a graphical representation of a fund's equity style box.
Funds investing the majority of their assets in securities of companies with a market capitalization below $2 billion are generally considered small-cap mutual funds. Although funds investing in small-cap stocks are believed to have more exposure to market volatility than large or medium ones, they are also expected to provide diversification across sectors and companies. Moreover, small-cap companies are believed to be less affected by a global downturn, thanks to less international exposure.
Goldman Sachs Small Cap Equity Insights Fund invests most of its net assets in a varied portfolio of equity investments in small-cap U.S. issuers. The fund has returned 1.6% over the past three years.
As of January 2024, GCSAX held 490 issues, with 1.3% of its assets invested in Super Micro Computers.
T. Rowe Price Integrated U.S. Small-Mid Cap Core Equity Fund invests most of its assets in common stocks of small and mid-cap companies. TQSMX advisors use the Russell 2500 index as a benchmark to select the companies to invest in. The fund has returned 7.8% over the past three years.
TQSMX has an expense ratio of 0.87%.
Vanguard Explorer Value Fund invests in small-cap domestic equity securities that it considers undervalued. VEVFX selects securities that have above-average dividend yields.The fund has returned 2.6% over the past three years.
John W. Rogers has been one of the fund managers of VEVFX since January 2022.
Image: Bigstock
Buy These 3 Small-Cap Blend Mutual Funds for Steady Returns
Investors with a high-risk appetite and an interest in growth and value investing may choose small-cap blend mutual funds to boost their portfolio. While blend funds, also known as "hybrid funds," aim for value appreciation through capital gains, small-cap funds have higher growth prospects than their large and medium counterparts. Blend funds provide significant exposure to both growth and value stocks, and owe their origin to a graphical representation of a fund's equity style box.
Funds investing the majority of their assets in securities of companies with a market capitalization below $2 billion are generally considered small-cap mutual funds. Although funds investing in small-cap stocks are believed to have more exposure to market volatility than large or medium ones, they are also expected to provide diversification across sectors and companies. Moreover, small-cap companies are believed to be less affected by a global downturn, thanks to less international exposure.
Below, we share with you three top-ranked small-cap blend mutual funds, namely Goldman Sachs Small Cap Equity Insights Fund (GCSAX - Free Report) , T. Rowe Price Integrated U.S. Small-Mid Cap Core Equity Fund (TQSMX - Free Report) and Vanguard Explorer Value Fund (VEVFX - 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.
Goldman Sachs Small Cap Equity Insights Fund invests most of its net assets in a varied portfolio of equity investments in small-cap U.S. issuers. The fund has returned 1.6% over the past three years.
As of January 2024, GCSAX held 490 issues, with 1.3% of its assets invested in Super Micro Computers.
T. Rowe Price Integrated U.S. Small-Mid Cap Core Equity Fund invests most of its assets in common stocks of small and mid-cap companies. TQSMX advisors use the Russell 2500 index as a benchmark to select the companies to invest in. The fund has returned 7.8% over the past three years.
TQSMX has an expense ratio of 0.87%.
Vanguard Explorer Value Fund invests in small-cap domestic equity securities that it considers undervalued. VEVFX selects securities that have above-average dividend yields.The fund has returned 2.6% over the past three years.
John W. Rogers has been one of the fund managers of VEVFX since January 2022.
To view the Zacks Rank and the past performance of all small-cap blend mutual funds, investors can click here to see the complete list of small-cap blend mutual funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>