5 Small-Cap Blend Mutual Funds To Consider
Small-cap blend funds are a type of equity mutual fund which holds in its portfolio a mix of value and growth stocks, where the market capitalization of the stocks are generally lower than $2 billion. Blend funds are also known as “hybrid funds”. Blend funds aim for value appreciation by capital gains. It owes its origin to a graphical representation of a fund’s equity style box. In addition to diversification, blend funds are great picks for investors looking for a mix of growth and value investment. Meanwhile, small-cap funds are a good choice for investors seeking diversification across different sectors and companies. Investors with a high risk appetite should invest in these funds.
Below we will share with you 5 favorably ranked small-cap blend mutual funds. Each has earned either a Zacks #1 Rank (Strong Buy) or a Zacks #2 Rank (Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all small-cap blend mutual funds, investors can click here to see the complete list of funds.
Rydex Russell 2000 2x Strategy A (RYRUX - MF report) seeks to provide daily return two-times higher than that of the Russell 2000 Index. RYRUX invests a lion’s share of its assets in common stocks of companies having market capitalization size within the universe of the index. RYRUX also invests in financial instruments that are expected to replicate the performances of securities included in the index. The Rydex Russell 2000 2x Strategy A fund is non-diversified and has returned 23.8% over the past one year.
As of April 2015, RYRUX held 2011 issues, with 0.38% of its total assets invested in Qorvo Inc.
Fidelity Small Cap Stock (FSLCX - MF report) invests a major portion of its assets in companies having market capitalizations identical to those listed in the Russell 2000 Index or the S&P SmallCap 600 Index. FSLCX uses a “blend” strategy to invest in common stocks of companies throughout the globe. Factors including financial strength and economic condition are considered before investing in a company. The Fidelity Small Cap Stock fund has returned 18.2% over the past one year.
Lionel T. Harris is the fund manager and has managed FSLCX since 2011.
USAA Small Cap Stock (USCAX - MF report) seeks capital appreciation over the long run. USCAX invests a large chunk of its assets equity securities of small cap companies. Though USCAX generally emphasizes on investing in domestic companies, USCAX may also allocate not more than one-fifth of its assets in non-US firms including those located in the emerging nations. The USAA Small Cap Stock fund has returned 12% over the past one year.
USCAX has an expense ratio of 1.14% compared to a category average of 1.23%.
Goldman Sachs Small Cap Equity Insights A (GCSAX - MF report) maintains a diversified portfolio by investing heavily in domestic companies of small capitalization size, which may also include non-US firms that are traded in the U.S. GCSAX defines small cap companies as ones that are having market cap size within the range of those included in the Russell 2000 Index. The Goldman Sachs Small Cap Equity Insights A fund has returned 15.5% over the past one year.
As of January 2015, GCSAX held 237 issues, with 1.72% of its total assets invested in Russell 2000 Mini Mar15 Ifus 20150320.
Sentinel Small Company A (SAGWX- MF report) seeks long-term capital appreciation. SAGWX invests a majority of its assets in companies having market capitalizations below $4 billion. SAGWX invests in companies that are believed to have impressive fundamentals including attractive value and sustainable growth prospects. SAGWX may also invest in non-US securities that are traded in the U.S. or Canada, or are denominated in U.S. or Canadian dollars. The Sentinel Small Company A fund has returned 14.3% over the past one year.
SAGWX has an expense ratio of 1.20% compared to a category average of 1.35%.
To view the Zacks Rank and past performance of all small-cap blend mutual funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank.
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