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3 Small-Cap Blend Mutual Funds for Attractive Returns
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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 by 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.
Fidelity Series Small Cap Discovery invests most of its net assets in small-cap companies with a market cap similar to the Russell 2000 Index or the S&P SmallCap 600 Index at the time of purchase. FJACX chooses to invest in growth or value stocks by using fundamental analysis of factors like financial condition, industry position, and market and economic conditions. The fund has returned 16% over the past three years.
As of April 2023, FJACX held 80 issues, with 3.6% of its assets invested in LGI Homes.
Davenport Small Cap Focus invests most of its assets in common stocks of small-cap companies, which its advisor believes have the potential for significant capital appreciation. DSCPX also invests in shares of registered investment companies that invest primarily in stocks of small-cap companies. The fund has returned 10.8% over the past three years.
DSCPX has an expense ratio of 0.89% compared with the category average of 1.03%.
Vanguard Explorer Value Investor invests in small-cap domestic equity securities that it considers undervalued. VEVFX selects securities that have above-average dividend yields.The fund has returned 14.1% over the past three years.
John W. Rogers has been one of the fund managers of VEVFX since January 2022.
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3 Small-Cap Blend Mutual Funds for Attractive 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 by 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 Fidelity Series Small Cap Discovery (FJACX - Free Report) , Davenport Small Cap Focus (DSCPX - Free Report) and Vanguard Explorer Value Investor (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.
Fidelity Series Small Cap Discovery invests most of its net assets in small-cap companies with a market cap similar to the Russell 2000 Index or the S&P SmallCap 600 Index at the time of purchase. FJACX chooses to invest in growth or value stocks by using fundamental analysis of factors like financial condition, industry position, and market and economic conditions. The fund has returned 16% over the past three years.
As of April 2023, FJACX held 80 issues, with 3.6% of its assets invested in LGI Homes.
Davenport Small Cap Focus invests most of its assets in common stocks of small-cap companies, which its advisor believes have the potential for significant capital appreciation. DSCPX also invests in shares of registered investment companies that invest primarily in stocks of small-cap companies. The fund has returned 10.8% over the past three years.
DSCPX has an expense ratio of 0.89% compared with the category average of 1.03%.
Vanguard Explorer Value Investor invests in small-cap domestic equity securities that it considers undervalued. VEVFX selects securities that have above-average dividend yields.The fund has returned 14.1% 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.
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