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3 Small-Cap Value Mutual Funds for Excellent 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.
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.
DFA U.S. Targeted Value Portfolio Class R2 seeks long-term capital appreciation by purchasing a diverse group of readily marketable securities of U.S. small and mid-cap companies. DFTPX also purchases and sells futures contracts, and options on futures contracts for U.S. equity securities and indices.
DFA U.S. Targeted Value Portfolio Class R2 has a three-year annualized return of 14.6%. As of January 2022, DFTPX held 1370 issues with 0.70% of its assets invested in Marathon Oil Corp.
Invesco Small Cap Value Fund Class A seeks long-term growth of capital by investing the majority of its net assets in under-valued securities of small-capitalization companies. The principal type of equity security in which VSCAX invests is common stock.
Invesco Small Cap Value Fund Class A has a three-year annualized return of 18.9%. Jonathan Edwards is one of the fund managers of VSCAX since 2010.
Bridgeway Omni Small-Cap Value Fund Class N seeks to provide long-term capital appreciation by investing in a diverse group of small-cap value stocks. BOSVX invests the majority of its net assets in equity or equity-related securities of small-cap companies at the time of purchase.
Bridgeway Omni Small-Cap Value Fund Class N has a three-year annualized return of 14.1%. BOSVX has an expense ratio of 0.60% compared with the category average of 1.16%.
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3 Small-Cap Value Mutual Funds for Excellent 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.
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 ), Invesco Small Cap Value Fund Class A (VSCAX - Free Report) , and Bridgeway Omni Small-Cap Value Fund Class N (BOSVX - 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.
DFA U.S. Targeted Value Portfolio Class R2 seeks long-term capital appreciation by purchasing a diverse group of readily marketable securities of U.S. small and mid-cap companies. DFTPX also purchases and sells futures contracts, and options on futures contracts for U.S. equity securities and indices.
DFA U.S. Targeted Value Portfolio Class R2 has a three-year annualized return of 14.6%. As of January 2022, DFTPX held 1370 issues with 0.70% of its assets invested in Marathon Oil Corp.
Invesco Small Cap Value Fund Class A seeks long-term growth of capital by investing the majority of its net assets in under-valued securities of small-capitalization companies. The principal type of equity security in which VSCAX invests is common stock.
Invesco Small Cap Value Fund Class A has a three-year annualized return of 18.9%. Jonathan Edwards is one of the fund managers of VSCAX since 2010.
Bridgeway Omni Small-Cap Value Fund Class N seeks to provide long-term capital appreciation by investing in a diverse group of small-cap value stocks. BOSVX invests the majority of its net assets in equity or equity-related securities of small-cap companies at the time of purchase.
Bridgeway Omni Small-Cap Value Fund Class N has a three-year annualized return of 14.1%. BOSVX has an expense ratio of 0.60% 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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