Top 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 | Zacks Rank | Total Return YTD |
ProFunds UltraSmall Cap Investor | #3 Hold | 24.20% |
Bridgeway Ultra-Small Company | #1 Strong Buy | 19.94% |
Pacific Advisors Small Cap Value A | #2 Buy | 19.63% |
Bridgeway Small-Cap Value | #1 Strong Buy | 17.19% |
Diamond Hill Small Cap A | #1 Strong Buy | 16.79% |
ProFunds UltraSmall Cap Investor (UAPIX) seeks to provide daily returns which are twice as much as the daily performance of the Russell 2000 Index. The fund purchases equity securities and derivatives which have similar return characteristics. This small-cap mutual fund is non-diversified and has returned 32.97% over the last one year period.
The small-cap mutual fund has a minimum initial investment of $15,000 and an expense ratio of 1.89% compared to a category average of 1.32%.
Bridgeway Ultra-Small Company (BRUSX) invests a large share of its assets in a wide range of “ultra-small companies”. A maximum of 15% of its assets are invested in foreign instruments. This small-cap mutual fund returned 26.27% over the last one year period.
The fund manager is John Montgomery and he has managed this small-cap mutual fund since 1994.
Pacific Advisors Small Cap Value A (PASMX) seeks capital growth. The fund invests the majority of its assets in small cap companies. These firms must have a market capitalization not exceeding $2 billion. This small-cap mutual fund returned 17.80% over the last one year period.
As of December 2012, this small-cap mutual fund held 30 issues, with 4.93% of its total assets invested in Saia, Inc.
Bridgeway Small-Cap Value (BRSVX) invests in a wide range of stocks issued by small cap firms which are listed on the NYSE, NYSE MKT and NASDAQ. The fund focusses on acquiring small cap value stocks. This small-cap mutual fund returned 27.21% over the last one year period.
The small-cap mutual fund has a minimum initial investment of $2,000 and an expense ratio of 0.94% compared to a category average of 1.41%.
Diamond Hill Small Cap A (DHSCX) seeks capital growth over the long-term. The fund invests the majority of its assets in domestic equity securities issued by small cap firms. These securities are believed to be attractively priced relative to their underlying value at the time of the purchase. This small-cap mutual fund returned 22.26% over the last one year period.
The fund manager is Tom Schindler and he has managed this small-cap mutual fund since 2000.
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.
Read the analyst report on UAPIX
Read the analyst report on BRUSX
Read the analyst report on PASMX
Read the analyst report on BRSVX
Read the analyst report on DHSCX
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