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Small-cap value mutual funds provide excellent choices for investors looking for bargains, i.e., stocks at a discount with impressive growth potential. Value mutual funds comprise stocks trading at a discount to book value, low price-to-earnings ratios and high dividend yields.
Value investing is a popular strategy, that too for a good reason. After all, who doesn’t want to find stocks with low PEs, solid outlooks and decent dividends? Added to that, small-cap funds are good choices for investors with a high-risk appetite, as companies with small-market capitalization are expected to have higher growth potential than large- and mid-cap companies.
Small-cap funds generally invest in companies having a market cap lower than $2 billion. Also, small-cap funds are expected to provide diversification across different sectors and companies.
Bridgeway Omni Small-Cap Value Fund invests in value stocks. BOSVX advisors also invest most of its assets, along with borrowings, if any, in a broad and diverse group of small-cap stocks traded on the New York Stock Exchange, the NYSE American and NASDAQ at the time of purchase.
Bridgeway Omni Small-Cap Value Fund has a three-year annualized return of 23.5%. As of the end of June 2023, BOSVX held 571 issues, with 1.1% of its assets invested in M/I Homes, Inc.
Neuberger Berman Genesis Inv Fund seeks long-term capital growth by investing in companies that are still in their early stages of development. NBGNX advisors look for undervalued companies whose current product lines and balance sheets are strong and are cheap compared with the market as a whole.
Neuberger Berman Genesis Inv Fund has a three-year annualized return of 7.5%. Robert W. D'Alelio has been the fund manager of NBGNX since 1997.
DFA US Targeted Value Fund seeks long-term capital appreciation by investing in securities of U.S. companies. DFFVX advisors also invest in value stocks and securities characterized by a company's shares having a high book value compared to their market value.
DFA US Targeted Value Fund has three-year annualized returns of 22.5%. DFFVX has an expense ratio of 0.29% compared with the category average of 1.16%.
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3 Small-Cap Value Mutual Funds for Solid Returns
Small-cap value mutual funds provide excellent choices for investors looking for bargains, i.e., stocks at a discount with impressive growth potential. Value mutual funds comprise stocks trading at a discount to book value, low price-to-earnings ratios and high dividend yields.
Value investing is a popular strategy, that too for a good reason. After all, who doesn’t want to find stocks with low PEs, solid outlooks and decent dividends? Added to that, small-cap funds are good choices for investors with a high-risk appetite, as companies with small-market capitalization are expected to have higher growth potential than large- and mid-cap companies.
Small-cap funds generally invest in companies having a market cap lower than $2 billion. Also, small-cap funds are expected to provide diversification across different sectors and companies.
Below, we share with you three top-ranked small-cap value mutual funds, viz., Bridgeway Omni Small-Cap Value Fund (BOSVX - Free Report) , Neuberger Berman Genesis Inv Fund (NBGNX - Free Report) and DFA US Targeted Value Fund (DFFVX - Free Report) . Each has 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 Small Cap Value mutual funds.
Bridgeway Omni Small-Cap Value Fund invests in value stocks. BOSVX advisors also invest most of its assets, along with borrowings, if any, in a broad and diverse group of small-cap stocks traded on the New York Stock Exchange, the NYSE American and NASDAQ at the time of purchase.
Bridgeway Omni Small-Cap Value Fund has a three-year annualized return of 23.5%. As of the end of June 2023, BOSVX held 571 issues, with 1.1% of its assets invested in M/I Homes, Inc.
Neuberger Berman Genesis Inv Fund seeks long-term capital growth by investing in companies that are still in their early stages of development. NBGNX advisors look for undervalued companies whose current product lines and balance sheets are strong and are cheap compared with the market as a whole.
Neuberger Berman Genesis Inv Fund has a three-year annualized return of 7.5%. Robert W. D'Alelio has been the fund manager of NBGNX since 1997.
DFA US Targeted Value Fund seeks long-term capital appreciation by investing in securities of U.S. companies. DFFVX advisors also invest in value stocks and securities characterized by a company's shares having a high book value compared to their market value.
DFA US Targeted Value Fund has three-year annualized returns of 22.5%. DFFVX has an expense ratio of 0.29% compared with the category average of 1.16%.
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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