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3 Top-Rated Small-Cap Value Mutual Funds for Spectacular Returns
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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 be 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-capstocks that are listed on the New York Stock Exchange, the NYSE American and 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 22.6%. As of the end of March 2023, BOSVX held 570 issues, with 1.07% of its assets invested in Permian Resources.
DFA U.S. Targeted Value Portfolio 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 has a three-year annualized return of 21.7%. DFFVX has an expense ratio of 0.30% compared with the category average of 1.16%.
Hotchkis & Wiley Small Cap Diversified Value Fund invests most of its assets, along with borrowings, if any, in equity securities of domestic and foreign small-cap companies. HWVAX advisors generally invest in companies that are undervalued.
Hotchkis & Wiley Small Cap Diversified Value Fund has a three-year annualized return of 20.1%. Judd Peters has been one of the fund managers of HWVAX since June 2014.
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3 Top-Rated Small-Cap Value Mutual Funds for Spectacular Returns
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 be 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 Hotchkis & Wiley Small Cap Diversified Value Fund (HWVAX - 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-capstocks that are listed on the New York Stock Exchange, the NYSE American and 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 22.6%. As of the end of March 2023, BOSVX held 570 issues, with 1.07% of its assets invested in Permian Resources.
DFA U.S. Targeted Value Portfolio 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 has a three-year annualized return of 21.7%. DFFVX has an expense ratio of 0.30% compared with the category average of 1.16%.
Hotchkis & Wiley Small Cap Diversified Value Fund invests most of its assets, along with borrowings, if any, in equity securities of domestic and foreign small-cap companies. HWVAX advisors generally invest in companies that are undervalued.
Hotchkis & Wiley Small Cap Diversified Value Fund has a three-year annualized return of 20.1%. Judd Peters has been one of the fund managers of HWVAX since June 2014.
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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