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3 Zacks Rank #1 Small-Cap Value Mutual Funds to Bet On
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The recent slump in key indices makes small-cap value mutual funds a prudent investment choice. Small-cap value mutual funds are an excellent choice for investors on a lookout for a bargain, i.e., stocks at a discount, with impressive growth potential. Value mutual funds are those that invest in stocks trading at a discount to book value, have low price-to-earnings ratio and high dividend yields. Value investing has always been a popular strategy, and for a good reason.
Investors with a high risk appetite also find small-cap funds intriguing as small market capitalization has a higher growth potential than large or mid-cap companies. Small-cap funds generally invest in companies with a market cap below $2 billion. Also, small-cap funds are expected to provide diversification across sectors and companies.
Invesco Small CapValue Y (VSMIX - Free Report) invests a bulk of its assets in securities, including derivatives of small-cap companies. The fund mainly invests in those small-cap companies, which are deemed undervalued by its investment adviser, Invesco Advisers, Inc. VSMIX seeks capital growth for the long run. Invesco Small CapValue Y has returned 12% over the past year.
VSMIX has an expense ratio of 0.85% compared with the category average of 1.28%.
Victory Integrity Small-Cap Value R6 (MVSSX - Free Report) invests heavily in equity securities, including preferred and common stocks, warrants and rights, and convertible securities of small-cap companies under the Russell 2000 Index. MVSSX seeks growth of capital over the long haul. Victory Integrity Small-Cap Value R6 returned 6.3% over the last one-year period.
As of December 2017, MVSSX held 135 issues, with 1.77% of its assets invested in Synovus Financial Corp.
DFA US Targeted Value R1 seeks capital growth for the long run. DFTVX maintains a diversified portfolio by investing in domestic small- and mid-cap companies that the fund’s Advisor considers to be value stocks. DFA US Targeted Value R1 has returned 5.3% over the past year.
Jed Fogdall is one of the fund managers of DFTVX since 2012.
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3 Zacks Rank #1 Small-Cap Value Mutual Funds to Bet On
The recent slump in key indices makes small-cap value mutual funds a prudent investment choice. Small-cap value mutual funds are an excellent choice for investors on a lookout for a bargain, i.e., stocks at a discount, with impressive growth potential. Value mutual funds are those that invest in stocks trading at a discount to book value, have low price-to-earnings ratio and high dividend yields. Value investing has always been a popular strategy, and for a good reason.
Investors with a high risk appetite also find small-cap funds intriguing as small market capitalization has a higher growth potential than large or mid-cap companies. Small-cap funds generally invest in companies with a market cap below $2 billion. Also, small-cap funds are expected to provide diversification across sectors and companies.
Below we share with you three top-ranked, small-cap value mutual funds. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the near future. Investors can click here to see the complete list of all small-cap value mutual funds, their Zacks Rank and past performance.
Invesco Small CapValue Y (VSMIX - Free Report) invests a bulk of its assets in securities, including derivatives of small-cap companies. The fund mainly invests in those small-cap companies, which are deemed undervalued by its investment adviser, Invesco Advisers, Inc. VSMIX seeks capital growth for the long run. Invesco Small CapValue Y has returned 12% over the past year.
VSMIX has an expense ratio of 0.85% compared with the category average of 1.28%.
Victory Integrity Small-Cap Value R6 (MVSSX - Free Report) invests heavily in equity securities, including preferred and common stocks, warrants and rights, and convertible securities of small-cap companies under the Russell 2000 Index. MVSSX seeks growth of capital over the long haul. Victory Integrity Small-Cap Value R6 returned 6.3% over the last one-year period.
As of December 2017, MVSSX held 135 issues, with 1.77% of its assets invested in Synovus Financial Corp.
DFA US Targeted Value R1 seeks capital growth for the long run. DFTVX maintains a diversified portfolio by investing in domestic small- and mid-cap companies that the fund’s Advisor considers to be value stocks. DFA US Targeted Value R1 has returned 5.3% over the past year.
Jed Fogdall is one of the fund managers of DFTVX since 2012.
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.
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