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3 Best-Rated Small-Cap Value Mutual Funds for Your Portfolio
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A small-cap value fund is a good choice for investors seeking diversification across sectors and companies, and focusing on gaining exposure to stocks that are trading at a discount. Investors with a high risk appetite should invest in these funds. Small-cap funds generally invest in companies having market cap of less than $2 billion. The companies, smaller in size, offer growth potential and can subsequently see an increase in market capitalization.
Meanwhile, value stocks are those that tend to trade at a price lower than their fundamentals (i.e. earnings, book value, debt-equity). It is a common practice to invest in value funds for income or yield. However, not all value funds solely comprise companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield should surely check the mutual fund yield, which is the dividend payout divided by the value of the mutual fund’s shares.
Bridgeway Small-Cap Value (BRSVX - Free Report) maintains a diversified portfolio by investing in securities of small cap companies listed on the NYSE, NYSE MKT, and NASDAQ. BRSVX seeks total return through growth of capital. The fund invests the lion’s share of its assets in undervalued small cap stocks. Bridgeway Small-Cap Value has a one-year annualized return of 29.4%.
BRSVX has an expense ratio of 0.94% compared with the category average of 1.30%.
AB Discovery Value A (ABASX - Free Report) seeks capital appreciation over the long run. ABASX invests the bulk of its assets in securities of both small- and mid-cap companies. In order to maintain its investment purpose, the fund focuses on those small- and mid-cap companies whose market-cap is similar to those in the Russell 2500 Value Index. AB Discovery Value Ahas a one-year annualized return of 29%.
As of January 2017, ABASX held 92 issues with 1.78% of its assets invested in Huntington Bancshares Inc.
Bridgeway Omni Small-Cap Value N (BOSVX - Free Report) invests in small cap stocks that are believed to be undervalued. BOSVX predominantly invests in equity securities to maintain a diversified portfolio. The fund is expected to invest in securities of companies traded on the NYSE, the NYSE MKT and NASDAQ. A maximum of 15% of BOSVX’s assets may get invested in securities of foreign companies. Bridgeway Omni Small-Cap Value N has a one-year annualized return of 33%.
Elena Khoziaeva is one of the fund managers of BOSVX since 2013.
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3 Best-Rated Small-Cap Value Mutual Funds for Your Portfolio
A small-cap value fund is a good choice for investors seeking diversification across sectors and companies, and focusing on gaining exposure to stocks that are trading at a discount. Investors with a high risk appetite should invest in these funds. Small-cap funds generally invest in companies having market cap of less than $2 billion. The companies, smaller in size, offer growth potential and can subsequently see an increase in market capitalization.
Meanwhile, value stocks are those that tend to trade at a price lower than their fundamentals (i.e. earnings, book value, debt-equity). It is a common practice to invest in value funds for income or yield. However, not all value funds solely comprise companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield should surely check the mutual fund yield, which is the dividend payout divided by the value of the mutual fund’s shares.
Below we share with you three top-rated, small-cap value mutual funds. 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 all small-cap value mutual funds.
Bridgeway Small-Cap Value (BRSVX - Free Report) maintains a diversified portfolio by investing in securities of small cap companies listed on the NYSE, NYSE MKT, and NASDAQ. BRSVX seeks total return through growth of capital. The fund invests the lion’s share of its assets in undervalued small cap stocks. Bridgeway Small-Cap Value has a one-year annualized return of 29.4%.
BRSVX has an expense ratio of 0.94% compared with the category average of 1.30%.
AB Discovery Value A (ABASX - Free Report) seeks capital appreciation over the long run. ABASX invests the bulk of its assets in securities of both small- and mid-cap companies. In order to maintain its investment purpose, the fund focuses on those small- and mid-cap companies whose market-cap is similar to those in the Russell 2500 Value Index. AB Discovery Value Ahas a one-year annualized return of 29%.
As of January 2017, ABASX held 92 issues with 1.78% of its assets invested in Huntington Bancshares Inc.
Bridgeway Omni Small-Cap Value N (BOSVX - Free Report) invests in small cap stocks that are believed to be undervalued. BOSVX predominantly invests in equity securities to maintain a diversified portfolio. The fund is expected to invest in securities of companies traded on the NYSE, the NYSE MKT and NASDAQ. A maximum of 15% of BOSVX’s assets may get invested in securities of foreign companies. Bridgeway Omni Small-Cap Value N has a one-year annualized return of 33%.
Elena Khoziaeva is one of the fund managers of BOSVX since 2013.
To view the Zacks Rank and past performance of all small-cap value mutual funds, investors can click here to see the complete list of funds.
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