3 Small-Cap Value Mutual Funds for Rewarding Returns

Small-cap funds are good choices for investors seeking diversification across different sectors and companies. Investors with a high-risk appetite should pick these funds. Small-cap funds generally invest in companies with a market cap lower than $2 billion. The companies, smaller in size, offer growth potential and their market capitalization may increase subsequently.Meanwhile, value stocks tend to trade at a price lower than their fundamentals (i.e. earnings, book value, debt-equity). It is common for some investors to invest in value funds for income or yield. However, not all value funds comprise solely companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield should make sure to check the mutual fund yield. The mutual fund yield is dividend payments divided by the value of the mutual fund’s shares.Below, we share with you three top-ranked small-cap value mutual funds, viz., Heartland Value Investor HRTVX, Sterling Capital Behav Sm Cp Val Eq SPSAX and DFA US Targeted Value DFFVX. 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.Heartland Value Investor fund seeks long-term capital appreciation. HRTVX invests primarily in stocks of small companies with market capitalizations of less than $1.5 billion selected on a value basis.Heartland Value Investorhas a three-year annualized return of 8.5%. As of the end of June 2024, HRTVX held 90 issues, with 2.9% of its assets invested in Silicon Motion Technology Corp.Sterling Capital Behav Sm Cp Val Eq fund seeks long-term capital growth.SPSAX invests its net assets in approximately 40 large, established companies with large market capitalizations that the portfolio managers believe offer potential for superior long-term growth. Sterling Capital Behav Sm Cp ValEqhas a three-year annualized return of 8%. Robert O. Weller has been the fund manager of SPSAX since 2013.DFA US Targeted Value Fund seeks long-term capital appreciation by investing in securities of U.S companies.DFFVX advisors also invest in value stocks and securities characterized by a company's shares having a higher book value than their market value.DFA US Targeted Value Fund has three-year annualized returns of 9.7%. DFFVX has an expense ratio of 0.30% compared with the category average of 1.16%.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 >>Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpView All Zacks #1 Ranked Mutual FundsWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (HRTVX): Fund Analysis Report Get Your Free (SPSAX): Fund Analysis Report Get Your Free (DFFVX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks