Small-Cap Value Funds to Buy Now for Long-Term Growth

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 Fund GSATX, Bridgeway Omni Small-Cap Value Fund BOSVX and Hartford Small Cap Value Fund HTSCX. 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 20.1%. As of the end of January 2026, GSATX held 453 issues, with 1.3% 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 19.6%. BOSVX has an expense ratio of 0.47%.

Hartford Small Cap Value Fund invests most of its net assets in common stocks of small- market capitalization companies, which, according to the fund’s advisors, are undervalued in the marketplace. Based on market conditions, HTSCX advisors use abottom-up selection process, focusing on one or more sectors.

Hartford Small Cap Value Fund has three-year annualized returns of 16%. Sean Kammann has been the fund manager of HTSCX since November 2018.

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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