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.
3 Zacks Rank #1 Small-Cap Value Funds to Boost Your Returns
Read MoreHide Full Article
Investors seeking diversification across sectors and companies, and focusing on gaining exposure to stocks at a discount may consider investing in small-cap value funds. These funds are good investment choices for investors with a high risk appetite. Small-cap funds generally invest in companies having market cap lower 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 and 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 paid out divided by the value of the mutual fund’s shares.
Prudential QMA Small-Cap Value Retirement (TSVRX - Free Report) seeks above-average growth of capital. TSVRX invests the lion’s share of its assets in common stocks of small-cap companies. The fund invests primarily in companies whose market-cap falls within the range of the S&P SmallCap 600 Index or the Russell 2000 Index. TSVRX not only invests in U.S. equity securities and REITs but also in common stocks of non-U.S. companies. Prudential QMA Small-Cap Value Retirement has returned 45% over the past one year.
Deborah Woods is one of the fund managers of TSVRX since 2015.
Northern Small Cap Value (NOSGX - Free Report) invests a bulk of its assets in companies having market capitalization within the universe of the Russell 2000 Value Index. NOSGX may focus on a specific sector like finance in managing its investment goal. Companies that are included in NOSGX’s portfolio generally pay low or no dividend. Northern Small Cap Value has returned 37.6% over the past one year.
NOSGX has an expense ratio of 1.00% compared with the category average of 1.32%.
T. Rowe Price Small-Cap Value Advisor (PASVX - Free Report) seeks capital appreciation over the long run. PASVX invests the majority of its assets in securities of companies with market capitalization similar to those listed on the Russell 2000 Index. Also, PASVX may consider securities of non-U.S. companies for investment. T. Rowe Price Small-Cap Value Advisor has returned 36% over the past one year.
As of December 2016, PASVX held 334 issues, with 1.61% of its assets invested in Home BancShares Inc.
Image: Bigstock
3 Zacks Rank #1 Small-Cap Value Funds to Boost Your Returns
Investors seeking diversification across sectors and companies, and focusing on gaining exposure to stocks at a discount may consider investing in small-cap value funds. These funds are good investment choices for investors with a high risk appetite. Small-cap funds generally invest in companies having market cap lower 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 and 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 paid out 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.
Prudential QMA Small-Cap Value Retirement (TSVRX - Free Report) seeks above-average growth of capital. TSVRX invests the lion’s share of its assets in common stocks of small-cap companies. The fund invests primarily in companies whose market-cap falls within the range of the S&P SmallCap 600 Index or the Russell 2000 Index. TSVRX not only invests in U.S. equity securities and REITs but also in common stocks of non-U.S. companies. Prudential QMA Small-Cap Value Retirement has returned 45% over the past one year.
Deborah Woods is one of the fund managers of TSVRX since 2015.
Northern Small Cap Value (NOSGX - Free Report) invests a bulk of its assets in companies having market capitalization within the universe of the Russell 2000 Value Index. NOSGX may focus on a specific sector like finance in managing its investment goal. Companies that are included in NOSGX’s portfolio generally pay low or no dividend. Northern Small Cap Value has returned 37.6% over the past one year.
NOSGX has an expense ratio of 1.00% compared with the category average of 1.32%.
T. Rowe Price Small-Cap Value Advisor (PASVX - Free Report) seeks capital appreciation over the long run. PASVX invests the majority of its assets in securities of companies with market capitalization similar to those listed on the Russell 2000 Index. Also, PASVX may consider securities of non-U.S. companies for investment. T. Rowe Price Small-Cap Value Advisor has returned 36% over the past one year.
As of December 2016, PASVX held 334 issues, with 1.61% of its assets invested in Home BancShares Inc.
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.
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 >>