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3 Small-Cap Value Mutual Funds to Buy Now for High Returns
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Small-cap funds are good choices for investors seeking diversification across different sectors and companies. Investors with a high-risk appetite should invest in these funds. Small-cap funds generally invest in companies having market cap lower than $2 billion. The companies, smaller in size, offer growth potential and their market capitalization may increase subsequently.
Meanwhile, value stocks tend to trade at a price lower than their fundamentals (i.e. earnings, book value, debt-equity). It is common for some investors to invest in value funds for income or yield. However, not all value funds comprise solely companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield, should be sure to check the mutual fund yield. The mutual fund yield is dividend payments divided by the value of the mutual fund’s shares.
SouthernSun Small Cap Fund Class N seeks long-term capital appreciation by investing most of its assets, along with borrowings, if any, in a diversified small-cap security. SSSFX advisors choose to invest in stocks that they believe are niche dominant and attractively valued with financial flexibility, and have a suitable management team.
SouthernSun Small Cap Fund Class N has a three-year annualized return of 11.7%. As of the end of June 2022, SSSFX held 20 issues, with 6.72% of its assets invested in Dycom Industries Incorporated.
Bridgeway Small Cap Value Fund seeks long-term capital appreciation by investing most of its assets along with borrowing, if any, in a diversified portfolio of small-cap stocks that are listed on the New York Stock Exchange, NYSE American, and NASDAQ. BRSVX advisors choose to invest in small-cap value stocks using a statistical method.
Bridgeway Small Cap Value Fund has a three-year annualized return of 18.7%. BRSVX has an expense ratio of 0.83% compared with the category average of 1.16%.
Glenmede Small Cap Equity Portfolio invests most of its assets along with borrowings, if any, in equity securities, such as common and preferred stocks, of small-cap U.S. companies with market capitalization similar to that of companies listed on the Russell 2000 Index at its last rebalancing. GTSCX chooses to invest in companies that its advisor believes are undervalued.
Glenmede Small Cap Equity Portfolio has a three-year annualized return of 10.1%. Jordan L. Irving has been the fund manager of GTSCX since February 2018.
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3 Small-Cap Value Mutual Funds to Buy Now for High Returns
Small-cap funds are good choices for investors seeking diversification across different sectors and companies. Investors with a high-risk appetite should invest in these funds. Small-cap funds generally invest in companies having market cap lower than $2 billion. The companies, smaller in size, offer growth potential and their market capitalization may increase subsequently.
Meanwhile, value stocks tend to trade at a price lower than their fundamentals (i.e. earnings, book value, debt-equity). It is common for some investors to invest in value funds for income or yield. However, not all value funds comprise solely companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield, should be sure to check the mutual fund yield. The mutual fund yield is dividend payments divided by the value of the mutual fund’s shares.
Below, we share with you three small-cap value mutual funds, namely,SouthernSun Small Cap Fund Class N (SSSFX - Free Report) , Bridgeway Small Cap Value Fund (BRSVX - Free Report) and Glenmede Small Cap Equity Portfolio (GTSCX - 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.
SouthernSun Small Cap Fund Class N seeks long-term capital appreciation by investing most of its assets, along with borrowings, if any, in a diversified small-cap security. SSSFX advisors choose to invest in stocks that they believe are niche dominant and attractively valued with financial flexibility, and have a suitable management team.
SouthernSun Small Cap Fund Class N has a three-year annualized return of 11.7%. As of the end of June 2022, SSSFX held 20 issues, with 6.72% of its assets invested in Dycom Industries Incorporated.
Bridgeway Small Cap Value Fund seeks long-term capital appreciation by investing most of its assets along with borrowing, if any, in a diversified portfolio of small-cap stocks that are listed on the New York Stock Exchange, NYSE American, and NASDAQ. BRSVX advisors choose to invest in small-cap value stocks using a statistical method.
Bridgeway Small Cap Value Fund has a three-year annualized return of 18.7%. BRSVX has an expense ratio of 0.83% compared with the category average of 1.16%.
Glenmede Small Cap Equity Portfolio invests most of its assets along with borrowings, if any, in equity securities, such as common and preferred stocks, of small-cap U.S. companies with market capitalization similar to that of companies listed on the Russell 2000 Index at its last rebalancing. GTSCX chooses to invest in companies that its advisor believes are undervalued.
Glenmede Small Cap Equity Portfolio has a three-year annualized return of 10.1%. Jordan L. Irving has been the fund manager of GTSCX since February 2018.
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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