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, though 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 consider value funds for income or yield. However, not all value funds consist solely of companies that primarily use their earnings to pay out dividends. Investors interested in choosing value funds for yield should 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 small-cap value mutual funds, namely, Goldman Sachs Small Cap Value Insights GSATX, Bridgeway Omni Small-Cap Value Fund BOSVX and DFA US Small Cap Value Portfolio DFSVX. Each has earned 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 funds.
Goldman Sachs Small Cap Value Insights fund invests most of its assets, along with borrowings, if any, ina broadly diversified portfolioof small-cap companies. GSATX advisors also invest in foreign issuers traded in the United States.
Goldman Sachs Small Cap Value Insights fund has a three-year annualized return of 15.3%. As of the end of October 2025, GSATX held 469 issues, with 1.2% of its net assets invested in TTM Technologies.
Bridgeway Omni Small-Cap Value Fund invests most of its assets, along with borrowings, if any, in a broad and diverse group of small-cap stocks that are listed on the New York Stock Exchange, the NYSE American and the Nasdaq at the time of purchase. BOSVX advisors generally invest in value stocks.
Bridgeway Omni Small-Cap Value Fund has a three-year annualized return of 14.8%. BOSVX has an expense ratio of 0.47%.
DFA US Small Cap Value Portfolio fund invests most of its net assets in securities of small-cap domestic companies. DFSVX advisors may also buy or sell futures and options contracts for U.S. equity securities and indices to adjust equity market exposure based on actual or expected cash flows from the fund.
DFA US Small Cap Value Portfolio fund has three-year annualized returns of 14.7%. Marc C. Leblond has been the fund manager of DFSVX since February2020.
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.
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