We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Best-Rated Small-Cap Growth Mutual Funds to Consider
Read MoreHide Full Article
Small-cap growth mutual funds seek to provide a greater growth potential than the large- and mid-cap ones in an improving domestic economy. This is because small-cap stocks are closely tied to the domestic economy and have less international exposure. So, small-cap growth mutual funds are safer bets than their large- and mid-cap counterparts following the recent developments in the U.S. economy.
Companies with market capitalization below $2 billion and an impressive growth prospect generally constitute the portfolio of these mutual funds. Though small-cap stocks are believed to provide higher returns, they are also considered more volatile than the large- and mid-cap companies. These mutual funds provide excellent choices for investors preferring long-term capital appreciation over dividend payouts while seeking to protect their investments from global growth concerns.
Artisan Small Cap Investor (ARTSX - Free Report) invests a bulk of its assets in equity securities of small-cap companies. ARTSX seeks appreciation of capital for the long run. The fund focuses on companies with market-cap lower than thrice the weighted average market-cap of companies in the Russell 2000 Index. Artisan Small Cap Investor has a three-year annualized return of 4%.
ARTSX has an expense ratio of 1.25% as compared to the category average of 1.34%.
Vanguard Explorer Investor (VEXPX - Free Report) seeks capital growth for the long run. VEXPX normally invests its assets in common stocks of small-cap companies, which are expected to have strong growth prospects. The fund generally has various investment advisors. Vanguard Explorer Investorhas a three-year annualized return of 6.1%.
Chad Meade is one of the fund managers of VEXPX since 2014.
Columbia Small Cap Growth I Z (CMSCX - Free Report) invests the major portion of its assets in equity securities of companies having market capitalization within the universe of the S&P SmallCap 600 Index. CMSCX focuses on acquiring common stocks of companies that are believed to have an impressive growth potential over the long run. The fund may also invest in companies with short- and medium-term above-average growth potential. Columbia Small Cap Growth I Z has a three-year annualized return of 5.6%.
CMSCX has an expense ratio of 1.12% as compared to the category average of 1.34%.
T. Rowe Price QM US Small-Cap Growth Equity (PRDSX - Free Report) seeks capital appreciation over the long run. PRDSX invests the lion’s share of its assets in securities of growth-oriented companies with small size market capitalization. Though PRDSX primarily focuses on acquiring securities of domestic companies, it may also invest not more than 10% of its assets in securities of companies located in foreign lands. T. Rowe Price QM US Small-Cap Growth Equity has a three-year annualized return of 8.7%.
As of September 2016, PRDSX held 288 issues, with 1.08% of its assets invested in Burlington Stores Inc.
Image: Bigstock
4 Best-Rated Small-Cap Growth Mutual Funds to Consider
Small-cap growth mutual funds seek to provide a greater growth potential than the large- and mid-cap ones in an improving domestic economy. This is because small-cap stocks are closely tied to the domestic economy and have less international exposure. So, small-cap growth mutual funds are safer bets than their large- and mid-cap counterparts following the recent developments in the U.S. economy.
Companies with market capitalization below $2 billion and an impressive growth prospect generally constitute the portfolio of these mutual funds. Though small-cap stocks are believed to provide higher returns, they are also considered more volatile than the large- and mid-cap companies. These mutual funds provide excellent choices for investors preferring long-term capital appreciation over dividend payouts while seeking to protect their investments from global growth concerns.
Below we share with you four top-rated small-cap growth 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 small-cap growth funds.
Artisan Small Cap Investor (ARTSX - Free Report) invests a bulk of its assets in equity securities of small-cap companies. ARTSX seeks appreciation of capital for the long run. The fund focuses on companies with market-cap lower than thrice the weighted average market-cap of companies in the Russell 2000 Index. Artisan Small Cap Investor has a three-year annualized return of 4%.
ARTSX has an expense ratio of 1.25% as compared to the category average of 1.34%.
Vanguard Explorer Investor (VEXPX - Free Report) seeks capital growth for the long run. VEXPX normally invests its assets in common stocks of small-cap companies, which are expected to have strong growth prospects. The fund generally has various investment advisors. Vanguard Explorer Investorhas a three-year annualized return of 6.1%.
Chad Meade is one of the fund managers of VEXPX since 2014.
Columbia Small Cap Growth I Z (CMSCX - Free Report) invests the major portion of its assets in equity securities of companies having market capitalization within the universe of the S&P SmallCap 600 Index. CMSCX focuses on acquiring common stocks of companies that are believed to have an impressive growth potential over the long run. The fund may also invest in companies with short- and medium-term above-average growth potential. Columbia Small Cap Growth I Z has a three-year annualized return of 5.6%.
CMSCX has an expense ratio of 1.12% as compared to the category average of 1.34%.
T. Rowe Price QM US Small-Cap Growth Equity (PRDSX - Free Report) seeks capital appreciation over the long run. PRDSX invests the lion’s share of its assets in securities of growth-oriented companies with small size market capitalization. Though PRDSX primarily focuses on acquiring securities of domestic companies, it may also invest not more than 10% of its assets in securities of companies located in foreign lands. T. Rowe Price QM US Small-Cap Growth Equity has a three-year annualized return of 8.7%.
As of September 2016, PRDSX held 288 issues, with 1.08% of its assets invested in Burlington Stores Inc.
To view the Zacks Rank and past performance of all small-cap growth mutual funds, investors can click here to see the complete list of small-cap growth funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>