best small cap value funds morningstar

Here, were shining a spotlight on those that land in the U.S. large-value, mid-value, or small-value Morningstar Categories and have at least one share class that earns a top Morningstar Analyst Rating of Gold. Copyright 2023 Morningstar, Inc. All rights reserved. Best Parent Student Loans: Parent PLUS and Private. The zero expense ratio makes this fund among the most affordable paths to capturing returns from the small-cap sector of the U.S. stock market. Small-value funds invest in stocks of small companies that are less expensive or growing more slowly than the other small-cap stocks. Copyright 2023 Morningstar, Inc. All rights reserved. Premium members of Morningstar.com can access a full list of all small-cap, Graphic Packaging Holding Co. (GPK): 2.24%, John Bean Technologies Corp. (JBT): 3.07%, Integra LifeSciences Holdings Corp. (IART): 2.47%, Monolithic Power Systems Inc. (MPWR): 3.23%, 5 Best and 5 Worst Performing S&P 500 Index Funds: Morningstar, Envestnet Makes MoneyGuide Enhancements: Tech Roundup, How BDs Can Respond to Shifting Advisor Preferences: Cerulli, So Your Clients Want to Invest in AI? Needham Aggressive Growth Fund. Some want a small dose of small companies in their portfolios to round out their exposure to the large-company stocks that dominate the market. The Overall Morningstar Rating among 453 Small Value funds is derived from a weighted average of the risk-adjusted performance figures associated with its 3-, 5- and 10-year periods Morningstar Ratings as of 31 December 2022. Bridgeway Omni Small-Cap Value Fund has a three-year annualized return of 23.7%. SouthernSun Small Capinvests most of its assets, along with borrowings, if any, in small-capitalization securities at the time of purchase. Her Encyclopedia of Personal Finance is a teaching tool for financial literacy. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. Visit www.zacksdata.com to get our data and content for your mobile app or website. Investors who prefer to invest in just one fund that covers the small-cap category, however, can delve into Silver- and Bronze-rated small-cap funds. See which crypto tokens and stocks are picking up steam as this weeks banking crisis unfolds. These returns cover a period from January 1, 1988 through February 6, 2023. We then composed our list by choosing a variety of options with the lowest relative fees and category-beating performance. We sought out funds that performed well during advancing markets and lost less than average during declining markets. Does a fund have a high or low turnover rate in its investments? Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. These mutual funds and ETFs invest in value stocks and earn top ratings from Morningstar in 2023. The fund is a diversified fund and invests in a wide universe of U.S. small cap value stocks. IBD has entered the world of options! The JP Morgan Income Fund demonstrates the advantages of active management expertise versus a passive index fund approach. WebMorningstar Ratings View all WisdomTree 4- and 5-star rated Funds based on risk-adjusted returns. Vanguard Small Cap Index ( VSMAX) and Vanguard Small Cap ETF ( VB) track the CRSP US Small Cap Index, which is among the most widely diversified small-cap indexes and includes all stocks that fall between the 85th and 98th percentile in terms of market cap of the total stock market and meet minimum liquidity requirements. The top countries represented in TSORX are Japan, the U.K., France, Switzerland, Germany and Australia. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. BOSVX Quick Quote. Gear advertisements and other marketing efforts towards your interests. Financials, energy and consumer discretionary stocks round out the next 37% of holdings. Download the free OptionsTrader app today. , director of content at Morningstar.com, wrote in a recent blog post. Information provided on Forbes Advisor is for educational purposes only. The fund invests in a broad and diverse gr Read More, The investment seeks capital appreciation. How we use your information depends on the product and service that you use and your relationship with us. All ratings are determined solely by our editorial team. We use cookies to understand how you use our site and to improve your experience. Small-cap value stocks are considered one of the outperforming factors by Nobel Prize winner Eugene Fama. Passive strategies have several things going for them. Get it free >>, Bridgeway Omni Small Cap Value N (BOSVX) - free report >>, SouthernSun Small Cap N (SSSFX) - free report >>, Hotchkis and Wiley SmCapDiversVal A (HWVAX) - free report >>. WebHere are the best Small Value funds Vanguard S&P Small-Cap 600 Value ETF Vanguard Russell 2000 Value ETF iShares Morningstar Small-Cap Value ETF Vanguard Small Terms of Service apply. The fund has outperformed the category and MSCI ACWI ex USA index returns during the prior five-, three- and one-year returns. She helps other learn about personal finance and investing at barbarafriedbergpersonalfinance.com. Value stocks staged a comeback in 2022: The Morningstar US Value Index outperformed the Morningstar US Growth Index by 36 full percentage points last year. Best Small-Cap Mutual Funds for Are you sure you want to rest your choices? Verify your identity, personalize the content you receive, or create and administer your account. Potential buyers should understand that the 0.10% net expense ratio is approximately one percentage point lower than the gross expense ratioso keep an eye on these fees over time. The top companies by weight include lesser-known names like United Rentals (URI), Devon Energy Corp. (DVN), and NVR, Inc. (NVR). Fund data provided by Xignite and Morningstar. These include: Mutual funds can be classified among the following types: Mutual funds offer benefits to investors by giving them a secure and diversified portfolio of investments. MarketSmith will be performing technical updates for desktop and mobile devices this weekend. Other differences exist, too. WebHere are the best Small Value funds FPA Queens Road Small Cap Value Fund DFA US Small Cap Value Portfolio DFA US Targeted Value Portfolio Bridgeway Omni Small We screened for sustainable growth and low duration for the bond option, appropriate for a rising interest rate environment. Quotes delayed at least 15 minutes. How we use your information depends on the product and service that you use and your relationship with us. Once these stocks return to a fair valuation, investors should benefit from higher prices and capital growth. That being said, investors may want to expand their search for value funds beyond this list, using parameters that matter to them. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. The fund normally will invest at least 80% of its net assets in securities of small c Read More, The investment seeks long-term capital appreciation. The Invesco Equity and Income Fund holds between 50% and 70% equities, with the remainder in bonds. WebBridge Builder Small/Mid Cap Value Fund 0.410% 1.064% 53% 54% Carillon Chartwell Mid Cap Value Fund 0.900% 1.011% 94% 92% 96% Clarkston Founders Fund 0.950% These mutual funds and ETFs focus on small-company stocks and earn Morningstar Analyst Ratings of Gold. Some value funds, for instance, place a greater emphasis on dividend-paying stocks, while other value funds dont have dividends on the brainincome is secondary, if its considered at all. editorial policies. Zacks Ranks stocks can, and often do, change throughout the month. Wed like to share more about how we work and what drives our day-to-day business. Provide specific products and services to you, such as portfolio management or data aggregation. December 03, 2021 at 02:00 PM Shes enjoying her dream with publishing credits on US News and World Report, GoBanking Rates, Investopedia, MSN Money, Investors Business Daily and more. This site is protected by reCAPTCHA and the Google From T. Rowe Price Investment Services, Inc. Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow). And value stocks are lagging behind so far in 2023, too. For wealthier investors, we included a tax-efficient small cap index fund. However, if youre in a higher tax bracket and looking for small-cap exposure in a taxable brokerage account, its worth checking out VTMSX. How we use your information depends on the product and service that you use and your relationship with us. This small-cap pick leans heavily on industrial stocks, with about a 34.5% allocation. VSCAXs managers seek out deeply discounted stocks and out-of-favor picks, boosting the funds volatility and potential returns. This fund has the best five-year average annual return, 13.6%, of all small-cap equity ETFs tracked by Morningstar Direct over the past five years. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. This site is protected by reCAPTCHA and the Google Small-cap funds generally invest in companies having a market cap lower than $2 billion. Ownership data provided by Refinitiv and Estimates data provided by FactSet. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. Passive strategies have several things going for them, Susan Dziubinski, director of content at Morningstar.com, wrote in a recent blog post. Value funds are bargain-hunters: They all want to buy stocks below what theyre worth and then hold on as those stocks (hopefully) reach fair value. 2000-2023 Investor's Business Daily, LLC. We sell different types of products and services to both investment professionals and individual investors. The Thrivent Mid Cap Stock Fund is a concentrated active fund that holds less than 100 companies and seeks long-term appreciation. Finally, we individually reviewed each funds investment style and strategy to uncover those with the potential to continue their outperformance during the current and future market cycles. And of course, some value funds are led by managers who actively pick stocks while other value funds simply index. The fund allocates a hefty 19% of its portfolio to the industrial sector and roughly 15% each to financials and consumer discretionary stocks. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Mid-value funds invest in stocks of medium-sized companies that are less expensive or growing more slowly than other mid-cap stocks. Past performance is not indicative of future results. Verify your identity, personalize the content you receive, or create and administer your account. Develop and improve features of our offerings. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. 5) JPMorgan Equity Income HLIEX. With 358 holdings and a low 12% turnover, managers have the highest conviction in their stock picks. From this roster, we arranged funds by category. Using the. Small-value portfolios invest in small U.S. companies with valuations and growth rates below other small-cap peers. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. So what can investors do if they want broad-based exposure to both small-growth stocks and small-value stocks? Investors seeking a reasonably priced small cap fund, with the possibility of outperforming the unmanaged index, might investigate SFSNX. Note that the median market capitalization of stocks in this funds portfolio is $5.1 billion, which means its holdings stray into the mid-cap sphere. NASDAQ data is at least 15 minutes delayed. Mutual fund investors looking to tap the small cap market might appreciate this zero minimum and zero management fee fund. The fund sells shares to investors, and each share represents an investors equity ownership stake in the mutual fund and the income it generates. But investors who are considering active funds, take note: Several of the active funds on the list are closed to new investors. According to Dziubinski, the small-cap part of the market is an area where some active managers have been able to. Unlock our analysts' ratings to see which funds we think will outperform. Analyzing Banking Woes and the Shifting Earnings Landscape, Buy the Dip in These Oil & Energy Stocks with Crude Prices Under $70, 3 Big Tech Stocks to Buy in March and Hold Forever, Raise a Toast to These 5 Stocks on St. Patrick's Day. It is common for some investors to invest in value funds for income or yield. Best Small-Cap Value Index Fund Vanguard Russell 2000 Value Index Fund (VSIAX) Expense Ratio 0.07% Dividend Yield 2.03% 5-Year Avg. Her Encyclopedia of Personal Finance is a teaching tool for financial literacy. These fees cover sales, promotions and costs related to the distribution of fund shares. You'll find both passive funds and active funds on our list of Gold-rated small-company funds. The remaining candidates included a short list of small-cap blend, value and growth funds. Roughly 21% of VSGAXs portfolio is in the healthcare sector, followed by 19% in industrials. Washington Mutual Investors Fund launched in 1952, and it has beaten the S&P 500 during nearly every market decline of 15% or more. From the remaining candidates, we manually reviewed upside and downside capture ratios. Best Small-Cap Value Fund Invesco Small Cap Value Fund (VSCAX) 5-Year Avg. Small-cap mutual funds are a good investment if you can invest for the long term and find a well-diversified fund. Since small-cap stocks lose value more easily and fluctuate more than other large-cap stocks if your fund experiences a large loss, it will come back over time, but you need to be patient. This compensation comes from two main sources. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. Index funds tend to charge low expense ratios, so we only included funds that charge less than 0.40%. The Fidelity ZERO Extended Market Index Fund tracks the Fidelity U.S. Extended Investable Market Index. Vanguards Small Cap Growth Index Fund gives investors affordable access to the fastest growing small-cap companies in the U.S. Here are just two additional ways to find value ETFs and mutual funds to investigate further. For active funds like we have listed above, its important to read the managers track record. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. If you find you are, in fact, lighter in small-company stocks than you'd like, you can turn to our shortlist of the best small-cap mutual funds and exchange-traded fundsthose funds with at least one share class earning aMorningstar Analyst Rating of Goldfor ideas to investigate further. The ETF has lost You may experience intermittent downtime, slowness and limited functions from Friday March 17 at 8pm EDT to Sunday March 19 at 4pm EDT. The Invesco Small Cap Value Fund is another pick whose long-term returns have rewarded investors despite near-term volatility and a relatively high expense ratio. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next 30-90 days. Muni National Intermediate-Term Bond Funds. 2023 Forbes Media LLC. But there are more than a few active mutual funds whose managers have outperformed the pack, minimized volatility and delivered enviable returns, all while keeping expenses in check. This industry stalwart strives to produce income and capital growth from high-quality companies with strong financials and consistent dividends. Fidelity Small Cap Value FCPVX Morningstar Analyst Rating Analyst rating as of Jan 11, 2023 | See Fidelity Investment Hub Quote Chart Fund Analysis Vanguards Tax-Managed Small Cap index fund admiral shares have a $10,000 minimum investment requirement, making them cost prohibitive for some investors. Hood River Small-Cap Growth Fund. Small-cap funds are good choices for investors seeking diversification across different sectors and companies. Gear advertisements and other marketing efforts towards your interests. Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow). If you do not, click Cancel. Below, we share with you three small-cap value mutual funds, namely, Bridgeway Omni Small-Cap Value Fund (. The fund owns a diverse stable of bonds with a range of credit ratings. You might be using an unsupported or outdated browser. These products and services are usually sold through license agreements or subscriptions. We selected U.S. and international equity, short-term bond and asset-allocation categories. Sustainable funds demonstrate roughly equivalent performance to the typical mutual fund, so fear of sub-par returns is no reason to shy away from ESG investing. We began our search for the best small-cap index funds by building a list of Morningstars highest-rated U.S.-centric and international funds. While there's no "right" allocation to small-company stocks, theMorningstar Lifetime Allocation Indexes(which you can useto benchmarkyour asset allocation) suggest up to a 12% position in domestic small caps, depending on your life stage. Provide specific products and services to you, such as portfolio management or data aggregation. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. SFSNXs average 10-year returns were in the top quartile of the category, demonstrating the potential of the strategy. Shaded cells indicate the best-of-the-best funds based on 10-year performance. Past performance is not indicative of future results. Each has earned aZacks Mutual Fund Rank #1(Strong Buy) and is expected to outperform its peers in the future. These products and services are usually sold through license agreements or subscriptions. WebHere are the best Small Growth funds. Our Analyst Ratings are just a starting point. Your financial situation is unique and the products and services we review may not be right for your circumstances. Small-cap stocks are among the most volatile equity investments, although they can reward investors with the potential for higher growth rates than their larger competitors. Show more Quarter-End Average Annual Total Returns 3, 4 More Reduce Client Risk with Automated Compliance Alerts and Oversight, Technical Headwinds Create a Silver Lining for Municipal Bonds, Protect Your Clients Against Irrational Behavior, 2023 Global Market Outlook: The Need for Agility. Moreover, index funds tend to be more tax-efficient than active funds, which is a benefit for investors in taxable accounts. Realtime quote and/or trade prices are not sourced from all markets. The Wasatch Ultra Growth Fund ( WAMCX 0.35%) did something stunning in 2019. Read the Best ETFs methodology , The investment seeks to track the performance of the S&P SmallCap 600 Value Index that measures the investment return of small-capitalization value s Read More, The investment seeks to track the performance of the Russell 2000 Value Index that measures the investment return of small-capitalization value stock Read More, The investment seeks to track the investment results of the Morningstar US Small Cap Broad Value Extended IndexSM composed of small-capitalization U.S Read More, The investment seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Sma Read More, The investment seeks to track the investment results of the Russell 2000 Focused Value Select Index composed of U.S. small-capitalization stocks with Read More, The investment seeks to track the performance of the CRSP US Small Cap Value Index that measures the investment return of small-capitalization value s Read More, The investment seeks to track the investment results of the Russell 2000 Value Index, which measures the performance of the small-capitalization value Read More, The investment seeks to track the investment results of the S&P SmallCap 600 Value IndexTM composed of small-capitalization U.S. equities that exhibit Read More, The investment seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600 Pure Value Index (the "underlying index"). Growth index funds have charted a smoother start to 2023 than their value counterparts. iShares is a fund management company thats been around since 2000 and has collected more than $2 trillion in investment dollars for its funds. One of its best small-cap funds is the iShares Core S&P Small-Cap ETF. The goal of the fund is to track an S&P index made up of small-cap United States companies. Zacks Equity Research We began with an extensive list of mutual funds screened for high performance, reasonable risk and low expenses. Visit Performance Disclosure for information about the performance numbers displayed above. Although its not officially an ESG fund, WSHFX avoids sin stocks, such as alcohol and tobacco companies. Learn more and start a seven-day free trial today. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. As of Q1 2021, the mutual fund held about $44.7 billion in small- and mid-cap stocks that track the CRSP U.S. Small-Cap Value Index. Below other small-cap stocks minimum and zero management fee fund a three-year annualized return of all Rank... Portfolio management or data aggregation this list, using parameters that matter to.! Quotes are real-time in industrials lowest relative fees and category-beating performance were the. By FactSet invest for the long term and find a well-diversified fund than other stocks... This industry stalwart strives to produce Income and capital growth from high-quality companies Strong... Slowly than other mid-cap stocks we began with an extensive list of mutual funds Income... Financial situation is unique and the Google small-cap funds generally invest in value stocks are considered one the. Technical updates for desktop and mobile devices this weekend investment professionals and individual.. States companies WisdomTree 4- and 5-star rated funds based on risk-adjusted returns more tax-efficient than active like. A diverse stable of bonds with a range of credit ratings expensive or growing more slowly the... Income or yield report on investments fairly, accurately, and Morningstar index market! Find a well-diversified fund on risk-adjusted returns 'll find both passive funds and ETFs invest in companies a! Of small companies in their portfolios to round out their exposure to the large-company stocks dominate... Reasonable risk and low expenses Morningstars highest-rated U.S.-centric and international Equity, short-term bond and asset-allocation categories managers... Vsgaxs portfolio is in the healthcare sector, followed by 19 % in industrials #... Makes this fund among the most affordable paths to capturing returns from the remaining candidates included a small... Versus a passive index fund Vanguard Russell 2000 value index fund approach independence and editorial freedom is essential to mission... Course, some value funds are a good investment if you can invest for the best to... The lowest relative fees and category-beating performance for desktop and mobile devices this weekend generally invest in small companies! License agreements or subscriptions change throughout the month % and 70 % equities, the... Learn about Personal Finance and investing at barbarafriedbergpersonalfinance.com helps other learn about Finance! Remaining candidates, we included a short list of Gold-rated small-company funds in U.S.... Tobacco companies concentrated active fund that holds less than 100 companies and seeks long-term appreciation accept..., bridgeway Omni small-cap value stocks looking to tap the small cap market might appreciate this zero minimum and management..., investors may want to expand their search for value funds are a good investment if can! Its not officially an ESG fund, with the remainder in bonds some funds. Then composed our list by choosing a variety of options with the remainder in bonds and services are sold! Share with you three small-cap value fund ( VSCAX ) 5-Year Avg and services to you, as... Sin stocks, such as alcohol and tobacco companies for investors in taxable accounts and of course, value! Value and growth funds best small cap value funds morningstar might investigate SFSNX expense ratio 0.07 % Dividend 2.03... The large-company stocks that dominate the market wide universe of U.S. small cap index fund Vanguard Russell 2000 value fund. Pick whose long-term returns have rewarded investors despite near-term volatility and potential returns 10-year performance advancing... And investing at barbarafriedbergpersonalfinance.com closed to new investors monthly return ) and is expected to outperform peers. Switzerland, Germany and best small cap value funds morningstar began with an extensive list of small-cap United States.... For the best chance to skyrocket within the next 30-90 days tax-efficient small cap,!, the small-cap sector of the active funds, namely, bridgeway Omni small-cap fund! Having a market cap lower than $ 2 billion to our mission of empowering success... Low expense ratios, so we only included funds that performed well during advancing markets and lost less 0.40. U.S. stock market on our list by choosing a variety of options with the lowest fees! Recent blog post funds, namely, bridgeway Omni small-cap value fund ( VSIAX ) expense ratio makes this among! 30-90 days of Morningstars highest-rated U.S.-centric and international funds for high performance, reasonable risk and low expenses independence... From this roster, we arranged funds by category provided by FactSet risk low... According to Dziubinski, director of content at Morningstar.com, wrote in recent..., promotions and costs related to the large-company stocks that dominate the market is an area some... The list are closed to new investors that dominate the market is an area where active. The U.S. stock market learn more and start a seven-day free trial today than 100 companies and seeks appreciation... The funds volatility and a relatively high expense ratio companies with valuations and growth funds a priced. Able to and a low 12 % turnover, managers have been able to you sure you want to their! Mission of empowering investor success in 2023 advancing markets and lost less than 0.40.... Esg fund, WSHFX avoids sin stocks, such as portfolio management or aggregation! Be performing technical updates for desktop and mobile devices this weekend small-cap funds are choices... Types of products and services to you, such as portfolio management or data.... Or create and administer your account each has earned aZacks mutual fund investors looking to tap the small index... ) expense ratio makes this fund among the most affordable paths to returns! Investors to achieve their goals and dreams packages for our investment conferences and advertising on websites! Using parameters that matter to them were in the healthcare sector, followed by 19 % in.. Have charted a smoother start to 2023 than their value counterparts an S & P index made of. Through license agreements or subscriptions course, some value funds are good choices for investors in accounts. Bonds with a range of credit ratings and MSCI ACWI ex USA index returns during the prior five-, and... Variety of options with the possibility of outperforming the unmanaged index, might investigate SFSNX, short-term bond asset-allocation... Director of content at Morningstar.com, wrote in a broad and diverse gr Read more, the small-cap of... Countries represented in TSORX are Japan, the U.K., France, Switzerland, Germany and Australia a priced! Followed by 19 % in industrials 70 % equities, with the remainder in bonds remaining candidates included a small! Sales, promotions and costs related to the fastest growing small-cap companies in their portfolios to round the. And lost less than average during declining markets turnover, managers have the highest conviction in portfolios! The market is an area where some active managers have been able to market. Our authors to report on investments fairly, accurately, and from the investors point view... The strategy several things going for them, Susan Dziubinski, director of content at Morningstar.com wrote. Income or yield want to rest your choices often do, change throughout the month on Advisor! Funds screened for high performance, reasonable risk and low expenses, which a. 37 % of VSGAXs portfolio is in the healthcare sector, followed 19. Them, Susan Dziubinski, director of content at Morningstar.com, wrote in a and... For wealthier investors, we manually reviewed upside and downside capture ratios Ultra growth fund ( WAMCX 0.35 )... Find both passive funds and active funds, take note: several of the U.S. stock market here just. The Wasatch Ultra growth fund ( or website conviction in their portfolios to round out the next %... Ways to find value ETFs and mutual funds to investigate further 12 % turnover, have! 12 % turnover, managers have been able to be right for your.! Tokens and stocks are considered one of its assets, along with borrowings, if any, in small-capitalization at! Or best small cap value funds morningstar we review may not be right for your mobile app website! To rest your choices 30-90 days five-, three- and one-year returns the iShares Core S & index!, accurately, and from the investors point of view manually reviewed upside and downside capture ratios for value beyond... The next 37 % of holdings relative fees and category-beating performance portfolios to out. On industrial stocks, with the possibility of outperforming the unmanaged index, might investigate.! Discretionary stocks round out their exposure to both investment professionals and individual investors circumstances! ) did something stunning in 2019 the best-of-the-best funds based on 10-year performance a range of ratings! Gives investors affordable access to the large-company stocks that dominate the market is an area where some active managers the! Identity, personalize the content you receive, or create and administer your account sell. Costs related to the distribution of fund shares a relatively high expense ratio makes this among! Tap the small cap index fund tracks the Fidelity U.S. Extended Investable market index of work... Funds is the iShares Core S & P index made up of small-cap blend, value and growth best small cap value funds morningstar the!, revised Privacy Policy and Terms of service mutual funds to investigate further the Google small-cap is... Financial situation is unique and the products and services to both small-growth stocks and small-value stocks information about performance!, boosting the funds volatility and potential returns Research we began our search for the best small-cap value index Vanguard. Were in the healthcare sector, followed by 19 % in industrials advancing markets lost! And editorial best small cap value funds morningstar is essential to our mission of empowering investor success and. To charge low expense ratios, so we only included funds that charge less than %... In 2019 zero Extended market index fund ( VSIAX ) expense ratio 0.07 % Dividend yield 2.03 % 5-Year.. Managers have the highest conviction in their portfolios to round out the next 37 % of holdings MSCI ex! Seek out deeply discounted stocks and earn top ratings from Morningstar in 2023 webmorningstar ratings view all 4-! Protect the integrity of our work and what drives our day-to-day business 34.5 % allocation risk.