U.S. Small-Cap Blend Equity

U.S. small-cap blend mutual funds and ETFs invest in a mix of... U.S. small-cap blend mutual funds and ETFs invest in a mix of small-cap value and growth stocks. Small-cap stocks usually have a market capitalization under US$1 billion. Value stocks tend to trade at lower valuations (price-earnings ratios, for example), than growth stocks. Growth companies are those firms that are projected to grow at a faster rate than the stock market average, based on measures such as book value, revenue, and earnings per share. Growth companies tend to trade at higher valuations (price-earnings ratios, for example), than so-called value stocks. This is because they are typically valued more for their potential years from now, rather than their current revenue or earnings. U.S. small-cap blend mutual funds and ETFs only invest in smaller companies, while others own a range of small and mid-sized companies but overall have a small-cap profile. U.S. small-cap blend mutual funds and ETFs can invest in a range of sectors. They may own energy, basic materials, pharmaceuticals, healthcare, technology, and financial services shares, among other industries. U.S. small-cap blend mutual funds and ETFs that have a greater concentration in value stocks will tend to exhibit less volatility than a fund solely focused on growth stocks. By contrast, funds and ETFs with a greater concentration in growth stocks will tend to exhibit more volatility but offer investors the chance for higher returns. Overall, U.S. Small-Cap Blend funds are more volatile than blend funds focused on medium or larger companies. Last Updated: 04/23/2024 View more View less

U.S. small-cap blend mutual funds and ETFs invest in a mix of small-cap value and growth stocks. Small-cap stocks usually have a market capitalization under US$1 billion. Value stocks... U.S. small-cap blend mutual funds and ETFs invest in a mix of small-cap value and growth stocks. Small-cap stocks usually have a market capitalization under US$1 billion. Value stocks tend to trade at lower valuations (price-earnings ratios, for example), than growth stocks. Growth companies are those firms that are projected to grow at a faster rate than the stock market average, based on measures such as book value, revenue, and earnings per share. Growth companies tend to trade at higher valuations (price-earnings ratios, for example), than so-called value stocks. This is because they are typically valued more for their potential years from now, rather than their current revenue or earnings. U.S. small-cap blend mutual funds and ETFs only invest in smaller companies, while others own a range of small and mid-sized companies but overall have a small-cap profile. U.S. small-cap blend mutual funds and ETFs can invest in a range of sectors. They may own energy, basic materials, pharmaceuticals, healthcare, technology, and financial services shares, among other industries. U.S. small-cap blend mutual funds and ETFs that have a greater concentration in value stocks will tend to exhibit less volatility than a fund solely focused on growth stocks. By contrast, funds and ETFs with a greater concentration in growth stocks will tend to exhibit more volatility but offer investors the chance for higher returns. Overall, U.S. Small-Cap Blend funds are more volatile than blend funds focused on medium or larger companies. Last Updated: 04/23/2024 View more View less