5 Best Performing Small Cap Mutual Funds Year to Date
When investors have the willingness to take short term positions and the ability to bear a certain degree of risk, small-cap funds could be the correct choice. These funds generate significant demand driven sales during a market upswing, which lead to an increase in their prices. Smaller firms also look to continuously reinvest their profits back into their business. This reassures shareholders of superior performance and higher profit potential from such companies. Small Cap funds therefore make excellent additions to a well-diversified portfolio.
Below we will share with you 5 top rated small-cap mutual funds. Each has earned a Zacks #1 Rank (Strong 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 funds, investors can click here to see the complete list of funds.
Mutual Fund | Total Return YTD |
Lord Abbett Developing Growth A | 49.49% |
Oberweis Micro-Cap | 48.80% |
Adams Harkness Small Cap Growth | 45.80% |
Wells Fargo Advantage Emerging Growth | 43.58% |
VALIC Company I Small Cap Aggressive Growth | 43.40% |
Lord Abbett Developing Growth A (LAGWX) seeks capital appreciation over the long term. The fund invests a minimum of 65% of its assets in small cap stocks. The fund invests in both domestic and foreign companies, including those from emerging markets. This small-cap mutual fund returned 53.85% over the last one year period.
The fund manager is F. Thomas O'Halloran and he has managed this small-cap mutual fund since 2001.
Oberweis Micro-Cap (OBMCX) invests in companies whose market capitalizations are at most $600 million. Alternatively, their capitalizations must be identical to those companies which are part of the Russell Micro-Cap Growth Index This small-cap mutual fund returned 56.76% over the last one year period.
The small-cap mutual fund has a minimum initial investment of $1,000 and an expense ratio of 2.00% compared to a category average of 1.43%.
Adams Harkness Small Cap Growth (ASCGX) seeks appreciably high capital growth. The fund invests the majority of its assets in equity securities issued by small and upcoming domestic companies. It may also invest in initial public offerings. This small-cap mutual fund returned 49.33% over the last one year period.
As of September 2013, this small-cap mutual fund held 104 issues, with 2.33% of its total assets invested in ExamWorks Group, Inc.
Wells Fargo Advantage Emerging Growth (WFGTX) invests a large share of its assets in equity securities issued by small companies. A maximum of 25% of its assets are invested in foreign companies via ADRs and similar securities. This small-cap mutual fund returned 50.14% over the last one year period.
The fund manager is Bruce C. Olson and he has managed this small-cap mutual fund since 2007.
VALIC Company I Small Cap Aggressive Growth (VSAGX) seeks capital appreciation. The fund invests the majority of its assets in large cap firms. These funds must have market capitalizations which are the same as or lower than that of the largest company included in the Russell 2000 Index. A maximum of 10% of its assets may be utilized to purchase foreign securities. This small-cap mutual fund returned 46.81% over the last one year period.
The small-cap mutual fund has an expense ratio of 0.99% compared to a category average of 1.43%.
To view the Zacks Rank and past performance of all small-cap 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. Learn more about the Zacks Mutual Fund Rank.
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