Three Small-Cap Blend Mutual Funds That Produce Impressive Yields

Risk-loving investors who value capital appreciation and dividends may benefit from small-cap mix mutual funds. These funds invest in long-term-rising companies to generate capital growth. Investors seeking industry and company diversity can choose small-cap funds. Most small-cap funds invest in firms under $2 billion.

Smaller enterprises have growth potential and may expand in market value. Small-cap funds are better protected against global downturns than big and mid-cap funds due to their lower foreign exposure.

We list three top small-cap mix mutual funds: TIAA-CREF Quant Small-Cap Equity Retail TCSEX, PGIM Jennison Small Company Fund PGOAX, and Davenport Small Cap Focus DSCPX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and should outperform its peers. Investors may view all funds here.

TIAA Quant Small-Cap Equity Retail fund invests most of its net assets in small-cap equities securities with market capitalization equal to Russell 2000 Index businesses at acquisition. The TCSEX advisers invest in local firms in many industries with good growth and values.

TIAA-CREF Quant Small-Cap Equity Retail fund returns 7.6% over three years. TCSEX held 397 issues and invested 1.3% of its net assets in Super Micro Computer, Inc. as of July 2023.

PGIM Jennison Small Company Fund pursues long-term capital growth. PGOAX invests in equity-related instruments, including nonconvertible preferred stocks and convertible securities, and common stocks of small, undervalued U.S. enterprises.

PGIM Jennison Small Company Fund returns 5.6% over three years. Jonathan M. Shapiro joined PGOAX as a fund manager in July 2018.

With moderate risk, Davenport Small Cap Focus fund aims maximum long-term total return. Small-capitalization company equity securities make up bulk of DSCPX's assets. Three-year annualized returns for Davenport Small Cap Focus fund are 7.5%. DSCPX's expenditure ratio is 0.88%, below the category average of 1.03%.

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