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 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,Nuveen Small Cap Value Opportunities Fund NSCAX,Goldman Sachs Small Cap Value Insights GSATX and Bridgeway Omni Small-Cap Value Fund BOSVX. 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.
Nuveen Small Cap Value Opportunities Fund invests most of its assets, along with borrowings, if any, in equity securities of companies with market capitalization similar to the companies listed on the Russell 2000 Value Index or the Standard & Poor's SmallCap 600 Index at the time of purchase. NSCAX advisors can also invest a small portion of its assets in foreign issues, including those from emerging market countries.
Nuveen Small Cap Value Opportunities Fund has a three-year annualized return of 14.2%. As of the end of September 2025, NSCAX held 63 issues, with 3% of its net assets invested in Seacoast Banking Corporation of Florida.
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 12.8%. GSATX has an expense ratio of 1.2%.
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 10.5%. Christine L. Wang has been the fund manager of BOSVX since August 2011.
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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This article originally published on Zacks Investment Research (zacks.com).
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