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3 Small-Cap Value Mutual Funds to Boost Your Portfolio
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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 pick these funds. Small-cap funds generally invest in companies having a 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 make sure to check the mutual fund yield. The mutual fund yield is dividend payments divided by the value of the mutual fund’s shares.
Bridgeway Omni Small-Cap Value Fund invests most of its assets, along with borrowings, if any, in a broad and diverse group of small-cap stocks that are listed on the New York Stock Exchange, the NYSE American and the Nasdaq at the time of purchase. BOSVX advisors generally invest in value stocks.
Bridgeway Omni Small-Cap Value Fund has a three-year annualized return of 18.8%. As of the end of September 2023, BOSVX held 555 issues, with 0.9% of its assets invested in Abercrombie & Fitch.
DFA U.S. Targeted Value Portfolio fund invests most of its net assets in a well-diversified portfolio of readily marketable domestic small and mid-cap companies, which, according to its advisor, are value stocks with high profitability. DFFVX advisors also invest in futures and options contracts of U.S. equity securities and indices.
DFA U.S. Targeted Value Portfolio fund has a three-year annualized return of 16.5%. DFFVX has an expense ratio of 0.29% compared with the category average of 1.16%.
Putnam Small Cap Value fund invests most of its net asset common stocks of domestic small-cap value stocks with market capitalization similar to the companies listed on the Russell 2000 Value Index at the time of purchase. PSLAX chooses to invest in companies based on valuation, financial strength and growth potential, along with their competitive position in the industry, projected future earnings, cash flows and dividends.
Putnam Small Cap Value fund has a three-year annualized return of 14.3%. Michael Petro has been one of the fund managers of PSLAX since January 2019.
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3 Small-Cap Value Mutual Funds to Boost Your Portfolio
Small-cap funds are good choices for investors seeking diversification across different sectors and companies. Investors with a high-risk appetite should pick these funds. Small-cap funds generally invest in companies having a 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 make 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, Bridgeway Omni Small-Cap Value Fund (BOSVX - Free Report) , DFA U.S. Targeted Value Portfolio (DFFVX - Free Report) and Putnam Small Cap Value (PSLAX - 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.
Bridgeway Omni Small-Cap Value Fund invests most of its assets, along with borrowings, if any, in a broad and diverse group of small-cap stocks that are listed on the New York Stock Exchange, the NYSE American and the Nasdaq at the time of purchase. BOSVX advisors generally invest in value stocks.
Bridgeway Omni Small-Cap Value Fund has a three-year annualized return of 18.8%. As of the end of September 2023, BOSVX held 555 issues, with 0.9% of its assets invested in Abercrombie & Fitch.
DFA U.S. Targeted Value Portfolio fund invests most of its net assets in a well-diversified portfolio of readily marketable domestic small and mid-cap companies, which, according to its advisor, are value stocks with high profitability. DFFVX advisors also invest in futures and options contracts of U.S. equity securities and indices.
DFA U.S. Targeted Value Portfolio fund has a three-year annualized return of 16.5%. DFFVX has an expense ratio of 0.29% compared with the category average of 1.16%.
Putnam Small Cap Value fund invests most of its net asset common stocks of domestic small-cap value stocks with market capitalization similar to the companies listed on the Russell 2000 Value Index at the time of purchase. PSLAX chooses to invest in companies based on valuation, financial strength and growth potential, along with their competitive position in the industry, projected future earnings, cash flows and dividends.
Putnam Small Cap Value fund has a three-year annualized return of 14.3%. Michael Petro has been one of the fund managers of PSLAX since January 2019.
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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