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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.
Those with a high-risk appetite should 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 tend to trade at a price lower than their fundamentals (i.e. earnings, book value, 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, DFA U.S. Targeted Value Portfolio Class R2 , Bridgeway Omni Tax-Managed Small-Cap Value Fund Class N and PIMCO RAE US Small Fund Class A (PMJAX - 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.
DFA U.S. Targeted Value Portfolio Class R2 fund aims for capital growth over the long term. DFTPX invests the majority of its net assets in equity securities of U.S. companies.
DFA U.S. Targeted Value Portfolio Class R2 buys a broad and diverse group of securities of U.S. companies with greater emphasis on small capitalization, value and high-profitability companies compared to their representation in the U.S. Universe. DFTPX fund has three-year annualized returns of 20.2% and has an expense ratio of 0.58% compared with the category average of 1.16%.
Bridgeway Omni Tax-Managed Small-Cap Value Fund Class N provides long-term total return on investment, largely through capital appreciation. BOTSX invests in a wide range of small-cap stocks that are considered to be value equities.
Bridgeway Omni Tax-Managed Small-Cap Value Fund Class N focuses on small-cap equities traded on the New York Stock Exchange, the NYSE MKT, and the NASDAQ. It may invest up to 15% of its total assets in foreign securities. BOTSX has returned 18% in the past three years.
As of the end of September 2020, held 684 issues, with 1.27% of its assets invested in Antero Resources Corp.
PIMCO RAE US Small Fund Class A (PMJAX - Free Report) seeks long-term capital growth. PMJAX invests the majority of its assets in securities of small-capitalization companies. It particularly focuses on small companies economically tied to the United States.
PIMCO RAE US Small Fund Class A has returned 21.2% in three years. Robert D. Arnott has been one of the fund managers of PMJAX since 2015.
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Grab These 3 Small-Cap Value Mutual Funds Today
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.
Those with a high-risk appetite should 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 tend to trade at a price lower than their fundamentals (i.e. earnings, book value, 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, DFA U.S. Targeted Value Portfolio Class R2 , Bridgeway Omni Tax-Managed Small-Cap Value Fund Class N and PIMCO RAE US Small Fund Class A (PMJAX - 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.
DFA U.S. Targeted Value Portfolio Class R2 fund aims for capital growth over the long term. DFTPX invests the majority of its net assets in equity securities of U.S. companies.
DFA U.S. Targeted Value Portfolio Class R2 buys a broad and diverse group of securities of U.S. companies with greater emphasis on small capitalization, value and high-profitability companies compared to their representation in the U.S. Universe. DFTPX fund has three-year annualized returns of 20.2% and has an expense ratio of 0.58% compared with the category average of 1.16%.
Bridgeway Omni Tax-Managed Small-Cap Value Fund Class N provides long-term total return on investment, largely through capital appreciation. BOTSX invests in a wide range of small-cap stocks that are considered to be value equities.
Bridgeway Omni Tax-Managed Small-Cap Value Fund Class N focuses on small-cap equities traded on the New York Stock Exchange, the NYSE MKT, and the NASDAQ. It may invest up to 15% of its total assets in foreign securities. BOTSX has returned 18% in the past three years.
As of the end of September 2020, held 684 issues, with 1.27% of its assets invested in Antero Resources Corp.
PIMCO RAE US Small Fund Class A (PMJAX - Free Report) seeks long-term capital growth. PMJAX invests the majority of its assets in securities of small-capitalization companies. It particularly focuses on small companies economically tied to the United States.
PIMCO RAE US Small Fund Class A has returned 21.2% in three years. Robert D. Arnott has been one of the fund managers of PMJAX since 2015.
To view the Zacks Rank and past performance of all small-cap value mutual funds, investors can click here to see the complete list of funds.
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