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Discover These 3 High-Potential Small-Cap Blend Mutual Funds

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Investors with a high-risk appetite and an interest in growth and value investing may choose small-cap blend mutual funds to boost their portfolio. While blend funds, also known as "hybrid funds," aim for value appreciation through capital gains, small-cap funds have better growth prospects than their large and medium counterparts. Blend funds provide significant exposure to growth and value stocks, and owe their origin to a graphical representation of a fund's equity style box.

Funds investing the majority of their assets in securities of companies with a market capitalization below $2 billion are generally considered small-cap mutual funds. Although funds investing in small-cap stocks are believed to have more exposure to market volatility than large or medium ones, they are expected to provide diversification across sectors and companies. Moreover, small-cap companies are believed to be less affected by a global downturn, thanks to less international exposure.

Below, we share with you three top-ranked small-cap blend mutual funds, namely Bridgeway Ultra-Small Company Market (BRSIX - Free Report) , T. Rowe Price Integrated U.S. Small-Mid Cap Core Equity Fund (TQSMX - Free Report) and Vanguard Explorer Value Fund (VEVFX - 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 Ultra-Small Company Market mainly invests in the stocks of very small companies, based on their size when purchased. It seeks to mirror the long-term performance of a CRSP index by holding a representative selection of the companies included in that benchmark. The fund has returned 14.2% over the past three years.

As of June 2025, BRSIX held 502 issues, with 0.9% of its assets invested in Aeva Technologies.

T. Rowe Price Integrated U.S. Small-Mid Cap Core Equity Fund invests primarily in equity securities of smaller and midsize U.S. companies, mainly through common stocks. The adviser targets firms whose market value aligns with those included in a broad U.S. index of smaller and midsize companies. The fund has returned 19.7% over the past three years.

TQSMX has an expense ratio of 0.87%.

Vanguard Explorer Value Fund focuses on stocks of smaller and midsize U.S. companies that an advisor views as undervalued. These are typically shares overlooked by investors and priced below what key fundamentals suggest. They may offer stronger dividend yields. The fund has returned 16% over the past three years.

John W. Rogers has been one of the fund managers of VEVFX since January 2022.

To view the Zacks Rank and the past performance of all small-cap blend mutual funds, investors can click here to see the complete list of small-cap blend mutual funds.

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