We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 Small-Cap Value Funds Offering Compelling Growth Prospects
Read MoreHide Full Article
Small-cap value mutual funds provide excellent choices for investors looking for bargains, i.e., stocks at a discount with impressive growth potential. Value mutual funds comprise stocks trading at a discount to book value, with low price-to-earnings ratios and high dividend yields.
Value investing is a very popular strategy, and for good reason. After all, who doesn’t want to find stocks with a low Price/Earnings (P/E) ratio, solid outlooks and decent dividends? Additionally, small-cap funds are good choices for investors with a high-risk appetite, as companies with small market capitalizations are expected to have higher growth potential than large- and mid-cap companies. Small-cap funds generally invest in companies with a market cap of less than $2 billion. Also, small-cap funds are expected to provide diversification across different sectors and companies.
PGIM Quant Solutions Small-Cap Value mainly invests in U.S. small-cap stocks and related securities, focusing on companies within the Russell 2000 Index market-cap range, while also allowing a portion of assets in real estate investment trusts (REITs).
PGIM Quant Solutions Small-Cap Value has a three-year annualized return of 19.2%. As of January 2026, TASVX held 405 issues, with 1.1% of its assets invested in Enersys.
DFA US Targeted Value invests in a varied group of readily marketable securities of U.S. small and mid-cap companies that its advisors consider to be value stocks with high profitability.
DFA US Targeted Value has a three-year annualized return of 18%. DFFVX has an expense ratio of 0.29%.
Pinnacle Value targets small and micro-cap U.S. companies, investing in diverse equity securities it believes are undervalued relative to their earnings potential or asset value.
Pinnacle Value has a three-year annualized return of 15.1%. John E. Deysher has been one of the fund managers of PVFIX since April 2003.
View the Zacks #1 Rank List
Image: Bigstock
3 Small-Cap Value Funds Offering Compelling Growth Prospects
Small-cap value mutual funds provide excellent choices for investors looking for bargains, i.e., stocks at a discount with impressive growth potential. Value mutual funds comprise stocks trading at a discount to book value, with low price-to-earnings ratios and high dividend yields.
Value investing is a very popular strategy, and for good reason. After all, who doesn’t want to find stocks with a low Price/Earnings (P/E) ratio, solid outlooks and decent dividends? Additionally, small-cap funds are good choices for investors with a high-risk appetite, as companies with small market capitalizations are expected to have higher growth potential than large- and mid-cap companies. Small-cap funds generally invest in companies with a market cap of less than $2 billion. Also, small-cap funds are expected to provide diversification across different sectors and companies.
Below, we share with you three top-ranked small-cap value mutual funds, namely, PGIM Quant Solutions Small-Cap Value (TASVX - Free Report) , DFA US Targeted Value (DFFVX - Free Report) and Pinnacle Value (PVFIX - Free Report) . Each has 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 Value mutual funds.
PGIM Quant Solutions Small-Cap Value mainly invests in U.S. small-cap stocks and related securities, focusing on companies within the Russell 2000 Index market-cap range, while also allowing a portion of assets in real estate investment trusts (REITs).
PGIM Quant Solutions Small-Cap Value has a three-year annualized return of 19.2%. As of January 2026, TASVX held 405 issues, with 1.1% of its assets invested in Enersys.
DFA US Targeted Value invests in a varied group of readily marketable securities of U.S. small and mid-cap companies that its advisors consider to be value stocks with high profitability.
DFA US Targeted Value has a three-year annualized return of 18%. DFFVX has an expense ratio of 0.29%.
Pinnacle Value targets small and micro-cap U.S. companies, investing in diverse equity securities it believes are undervalued relative to their earnings potential or asset value.
Pinnacle Value has a three-year annualized return of 15.1%. John E. Deysher has been one of the fund managers of PVFIX since April 2003.
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.
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 >>