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3 Top-Ranked Small-Cap Value Mutual Funds for Stellar 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 pick 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.
Schwartz Value Focused fund invests most of its assets, along with borrowings, if any, in common stocks, preferred stocks and securities convertible into common stocks regardless of market capitalization. RCMFX advisors also invest in exchange-traded funds.
Schwartz Value Focused fund has a three-year annualized return of 24.5%. As of the end of June 2023, RCMFX held 24 issues, with 21.1% of its assets invested in Texas Pacific Land.
DFA US Small Cap Value fund invests most of its net assets in small-cap domestic companies. DFSVX advisors also invest in futures and options contracts of U.S. equity securities and indices to manage market risks.
DFA US Small Cap Value fund has a three-year annualized return of 19.3%. DFSVX has an expense ratio of 0.31% compared with the category average of 1.16%.
Vericimetry US Small Cap Value fund invests most of its assets, in the common stock of domestic small-cap value companies at the time of purchase. VYSVX advisors invest in companies based on a market capitalization weighted approach to determine the target weighting of the U.S. small-cap value stocks.
Vericimetry US Small Cap Value fund has a three-year annualized return of 16.8%. Carl Plat has been one of the fund managers of VYSVX since April 2016.
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3 Top-Ranked Small-Cap Value Mutual Funds for Stellar 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 pick 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, Schwartz Value Focused (RCMFX - Free Report) , DFA US Small Cap Value (DFSVX - Free Report) and Vericimetry US Small Cap Value (VYSVX - 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.
Schwartz Value Focused fund invests most of its assets, along with borrowings, if any, in common stocks, preferred stocks and securities convertible into common stocks regardless of market capitalization. RCMFX advisors also invest in exchange-traded funds.
Schwartz Value Focused fund has a three-year annualized return of 24.5%. As of the end of June 2023, RCMFX held 24 issues, with 21.1% of its assets invested in Texas Pacific Land.
DFA US Small Cap Value fund invests most of its net assets in small-cap domestic companies. DFSVX advisors also invest in futures and options contracts of U.S. equity securities and indices to manage market risks.
DFA US Small Cap Value fund has a three-year annualized return of 19.3%. DFSVX has an expense ratio of 0.31% compared with the category average of 1.16%.
Vericimetry US Small Cap Value fund invests most of its assets, in the common stock of domestic small-cap value companies at the time of purchase. VYSVX advisors invest in companies based on a market capitalization weighted approach to determine the target weighting of the U.S. small-cap value stocks.
Vericimetry US Small Cap Value fund has a three-year annualized return of 16.8%. Carl Plat has been one of the fund managers of VYSVX since April 2016.
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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