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 Small-Cap Growth Mutual Funds for Outstanding Returns
Read MoreHide Full Article
Small-cap growth funds are natural choices for investors with a high-risk appetite when capital appreciation over the long term takes precedence over dividend payouts. These funds focus on realizing an appreciable amount of capital growth by investing in stocks projected to rise in value over the long term.
Small-cap funds are also good choices for investors seeking diversification across different sectors and companies. These generally invest in companies having a market cap lower than $2 billion. The companies, smaller in size, offer growth potential, and their market capitalization may increase subsequently. Also, due to their lower international exposure, small-cap funds offer higher protection than their large- and mid-cap counterparts against any global downturn.
Vanguard Explorer seeks long-term growth of capital. VEXPX invests in the stocks of small companies, which are considered by the fund's advisers to have superior growth potential.
Vanguard Explorer has a three-year annualized return of 1.6%. VEXPX has an expense ratio of 0.46% compared with the category average of 1.21%.
TRP Integrated US Small-Cap Growth Equity seeks long-term capital appreciation. PRDSX invests most of its assets in common stocks at small growth companies.
TRP Integrated US Small-Cap Growth Equity has three-year annualized returns of 0.6%. As of June 2023, PRDSX held 320 issues, with 1.1% of its assets invested in Manhattan Associates, Inc.
Northern Small Cap Core Fund seeks to provide long-term capital appreciation. NSGRX invests its net assets in the equity securities of small-capitalization companies and the securities of U.S. companies.
Northern Small Cap Core Fund has three-year annualized returns of 4.7%. Michael R. Hunstad has been one of the fund managers of NSGRX since July 2020.
Image: Bigstock
3 Small-Cap Growth Mutual Funds for Outstanding Returns
Small-cap growth funds are natural choices for investors with a high-risk appetite when capital appreciation over the long term takes precedence over dividend payouts. These funds focus on realizing an appreciable amount of capital growth by investing in stocks projected to rise in value over the long term.
Small-cap funds are also good choices for investors seeking diversification across different sectors and companies. These generally invest in companies having a market cap lower than $2 billion. The companies, smaller in size, offer growth potential, and their market capitalization may increase subsequently. Also, due to their lower international exposure, small-cap funds offer higher protection than their large- and mid-cap counterparts against any global downturn.
Below, we share with you three top-ranked small-cap growth mutual funds, viz., Vanguard Explorer (VEXPX - Free Report) ,TRP Integrated US Small-Cap Growth Equity (PRDSX - Free Report) , and Northern Small Cap Core Fund (NSGRX - 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.
Vanguard Explorer seeks long-term growth of capital. VEXPX invests in the stocks of small companies, which are considered by the fund's advisers to have superior growth potential.
Vanguard Explorer has a three-year annualized return of 1.6%. VEXPX has an expense ratio of 0.46% compared with the category average of 1.21%.
TRP Integrated US Small-Cap Growth Equity seeks long-term capital appreciation. PRDSX invests most of its assets in common stocks at small growth companies.
TRP Integrated US Small-Cap Growth Equity has three-year annualized returns of 0.6%. As of June 2023, PRDSX held 320 issues, with 1.1% of its assets invested in Manhattan Associates, Inc.
Northern Small Cap Core Fund seeks to provide long-term capital appreciation. NSGRX invests its net assets in the equity securities of small-capitalization companies and the securities of U.S. companies.
Northern Small Cap Core Fund has three-year annualized returns of 4.7%. Michael R. Hunstad has been one of the fund managers of NSGRX since July 2020.
To view the Zacks Rank and the past performance of all small-cap growth mutual funds, investors can click here to see the complete list of small-cap growth 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 >>