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3 Top-Ranked Small-Cap Blend Mutual Funds to Invest In
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Risk-loving investors, who give precedence to capital appreciation along with dividend payouts, may consider small-cap blend mutual funds to derive healthy returns. These funds focus on realizing an appreciable amount of capital growth by investing in stocks that are projected to rise over the long term.
Meanwhile, small-cap funds are good choices for investors seeking diversification across different sectors and companies. 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. Also, due to their less international exposure, small-cap funds offer higher protection than their large and mid-cap counterparts in any global downturn.
Fidelity Series Small Cap Opportunities Fund invests most of its net assets in common stocks of domestic and foreign small-cap companies with growth or value or both characteristics. FSOPX advisors consider small-cap companies as those with market capitalization similar to the companies listed in the Russell 2000 Index or the S&P SmallCap 600 Index.
Fidelity Series Small Cap Opportunities Fund has three-year annualized returns of 6.8%. As of the end of January 2024, FSOPX had 215 issues and invested 1.7% of its net assets in Academy Sports & Outdoors.
DFA U.S. Micro Cap Portfolio fund invests most of its net assets in a broad and diverse group of domestic micro-cap companies using a market-capitalization weighted approach. DFSCX advisors also purchase or sell futures contracts and options of U.S. equity securities and indices.
DFA U.S. Micro Cap Portfolio has three-year annualized returns of 5.7%. DFSCX has an expense ratio of 0.41%
Vanguard Explorer Value Fund invests most of its net assets in small and mid-cap U.S. companies, which, according to the advisor, are undervalued. VEVFX advisors consider a stock as undervalued if it is out of favor among investors, trading at a price below average in relation to measures estimated, such as earnings and book value, and has an above-average dividend yield.
Vanguard Explorer Value Fund has three-year annualized returns of 5.1%. John W. Rogers has been one of the fund managers of VEVFX since the end of January 2022.
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3 Top-Ranked Small-Cap Blend Mutual Funds to Invest In
Risk-loving investors, who give precedence to capital appreciation along with dividend payouts, may consider small-cap blend mutual funds to derive healthy returns. These funds focus on realizing an appreciable amount of capital growth by investing in stocks that are projected to rise over the long term.
Meanwhile, small-cap funds are good choices for investors seeking diversification across different sectors and companies. 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. Also, due to their less international exposure, small-cap funds offer higher protection than their large and mid-cap counterparts in any global downturn.
Below, we share with you three top-ranked, small-cap growth mutual funds, Fidelity Series Small Cap Opportunities Fund (FSOPX - Free Report) , DFA U.S. Micro Cap Portfolio (DFSCX - Free Report) and Vanguard Explorer Value Fund (VEVFX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of small-cap blend funds.
Fidelity Series Small Cap Opportunities Fund invests most of its net assets in common stocks of domestic and foreign small-cap companies with growth or value or both characteristics. FSOPX advisors consider small-cap companies as those with market capitalization similar to the companies listed in the Russell 2000 Index or the S&P SmallCap 600 Index.
Fidelity Series Small Cap Opportunities Fund has three-year annualized returns of 6.8%. As of the end of January 2024, FSOPX had 215 issues and invested 1.7% of its net assets in Academy Sports & Outdoors.
DFA U.S. Micro Cap Portfolio fund invests most of its net assets in a broad and diverse group of domestic micro-cap companies using a market-capitalization weighted approach. DFSCX advisors also purchase or sell futures contracts and options of U.S. equity securities and indices.
DFA U.S. Micro Cap Portfolio has three-year annualized returns of 5.7%. DFSCX has an expense ratio of 0.41%
Vanguard Explorer Value Fund invests most of its net assets in small and mid-cap U.S. companies, which, according to the advisor, are undervalued. VEVFX advisors consider a stock as undervalued if it is out of favor among investors, trading at a price below average in relation to measures estimated, such as earnings and book value, and has an above-average dividend yield.
Vanguard Explorer Value Fund has three-year annualized returns of 5.1%. John W. Rogers has been one of the fund managers of VEVFX since the end of 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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