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3 Top-Ranked Small-Cap Growth Mutual Funds for Steady Returns
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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 their market capitalization may increase subsequently. Less international exposure makes small-cap funds less vulnerable to a stronger U.S. dollar.
Though small-cap stocks are believed to provide greater returns, they are expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Risk-taking investors who prefer capital appreciation over dividend payout may consider small-cap growth mutual funds. Growth funds focus on realizing an appreciable amount of capital growth by investing in stocks projected to rise in value over the long term. Meanwhile, small-cap funds are good choices for investors seeking diversification across different sectors and companies.
Eaton Vance Small-Cap fund invests most of its net assets in equity securities of small-cap companies. ETEGX advisors consider small-cap companies as those with market capitalization similar to or below or have a three-year average maximum market cap of companies listed in the Russell 2000 Index.
Eaton Vance Small-Cap fund has five-year annualized returns of 7.8%. As of the end of June 2023, ETEGX had 71 issues and 2.9% of its assets were invested in CBIZ.
Vanguard Explorer Fund Investor Shares fund aims for long-term capital appreciation by investing in small and medium-cap companies. VEXPX advisors choose to invest in companies based on superior growth potential.
Vanguard Explorer Fund Investor Shares fund has returned 10.2% in the past five years. VEXPX has an expense ratio of 0.45% compared with the category average of 1.21%.
Harbor Small Cap Growth Investor Shares fund invests most of its assets, along with borrowings, if any, in common and preferred stocks of small-cap companies. HISGX advisors consider small companies, with market capitalization within the range of companies listed on the Russell 2000 Growth Index.
Harbor Small Cap Growth fund has five-year annualized returns of 11.3%.William A. Muggia has been one of the fund managers of HISGX since October 2000.
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3 Top-Ranked Small-Cap Growth Mutual Funds for Steady Returns
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 their market capitalization may increase subsequently. Less international exposure makes small-cap funds less vulnerable to a stronger U.S. dollar.
Though small-cap stocks are believed to provide greater returns, they are expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Risk-taking investors who prefer capital appreciation over dividend payout may consider small-cap growth mutual funds. Growth funds focus on realizing an appreciable amount of capital growth by investing in stocks projected to rise in value over the long term. Meanwhile, small-cap funds are good choices for investors seeking diversification across different sectors and companies.
Below, we share with you three small-cap growth mutual funds, namely, Eaton Vance Small-Cap (ETEGX - Free Report) , Vanguard Explorer Investor Shares (VEXPX - Free Report) and Harbor Small Cap Growth Investor Shares (HISGX - 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.
Eaton Vance Small-Cap fund invests most of its net assets in equity securities of small-cap companies. ETEGX advisors consider small-cap companies as those with market capitalization similar to or below or have a three-year average maximum market cap of companies listed in the Russell 2000 Index.
Eaton Vance Small-Cap fund has five-year annualized returns of 7.8%. As of the end of June 2023, ETEGX had 71 issues and 2.9% of its assets were invested in CBIZ.
Vanguard Explorer Fund Investor Shares fund aims for long-term capital appreciation by investing in small and medium-cap companies. VEXPX advisors choose to invest in companies based on superior growth potential.
Vanguard Explorer Fund Investor Shares fund has returned 10.2% in the past five years. VEXPX has an expense ratio of 0.45% compared with the category average of 1.21%.
Harbor Small Cap Growth Investor Shares fund invests most of its assets, along with borrowings, if any, in common and preferred stocks of small-cap companies. HISGX advisors consider small companies, with market capitalization within the range of companies listed on the Russell 2000 Growth Index.
Harbor Small Cap Growth fund has five-year annualized returns of 11.3%.William A. Muggia has been one of the fund managers of HISGX since October 2000.
To view the Zacks Rank and the past performance of all small-cap growth mutual funds, investors can click here to see the complete list of small-cap growth mutual funds.
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