Implications of "Best Interest" Rule for Annuities
Aaron Levitt
|
With broker-dealers and agents now acting in favor of clients, investors may be...
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First, we select the top trending category from more than 200 categories listed on MutualFunds.com based on the percentage increase in monthly viewership. From the top trending category, we select the top three funds with the highest one-year trailing total returns. To ensure the quality and staying power of funds, we only look at those mutual funds with a minimum of $100 million in assets and a track record of at least three years. We also remove those mutual funds that are closed to new investors and are not available for investment outside registered accounts such as retirement or 529 accounts.
In this week’s edition, we analyze the top three Micro-Cap Equity Funds. Typically, these funds specialize in investing in companies or ETFs that have a market capitalization of $1.5 billion or less.
As the markets and the global economy recover from the COVID-19 pandemic, investors are looking for ways to “catch up” on lost gains. One way to achieve higher gains is by investing in smaller, more volatile stocks that have the ability to generate higher-than-average earnings growth. With more businesses still adapting to the new global paradigm post-coronavirus, small-cap stocks are well positioned to outperform other classes.
Micro-Cap Equity Funds typically invest in companies that have a market capitalization of $1.5 billion or less – although lower benchmarks like $1 billion or under are common. While they are usually diversified on a regional basis by investing in both domestic and international equities, the stipulation that all stocks held must be under a certain market cap makes these funds one of the most volatile mutual funds available and suited for investors who understand the risks involved.
Our breakdown of each fund includes key aspects such as trailing one-year performance, fund expenses, investment style and management teams to give you an overview of how these funds hold up against their peers.
Be sure to check out the Micro-Cap Equity Funds page to find out more about the other funds in this category as well.
1. Lord Abbett Micro Cap Growth (LAMGX)
Taking the top spot on our list this week is Lord Abbett’s Micro Cap Growth Fund (LAMGX). It has a stellar trailing one-year performance of 66.86%. It comes with an adjusted expense ratio of 1.31%, placing it solidly in the middle of the pack when it comes to investor fees.
The investment strategy of the fund is to invest at least 80% of its assets in stocks with a market capitalization of $1 billion or less. Management uses fundamental analysis to identify potential holdings and select stocks that have the potential to generate faster-than-average earnings growth. It is benchmarked to the Russell Microcap Index.
The lead portfolio manager of the fund is F. Thomas O’Halloran, J.D., CFA, who has been managing the fund since March 2006. He is supported by Matthew R. DeCicco, CFA, Vernon T. Bice and Steven H. Wortman.
The fund’s portfolio is currently composed of 89 different assets with the top five sector weights being healthcare 44.26%, technology 18.98%, consumer cyclical 13.27%, industrials 10.97% and communication services 4.05%. The five largest holdings include Calix Networks, Inc. 2.9%, Cerence Inc 2.4%, Select Comfort Corp. 2.1%, Axonics Modulation Technologies Inc. 2.0% and Chart Industries, Inc. 2.0% .
Learn more about different Portfolio Management concepts here.
2. Wasatch Micro Cap Fund (WMICX)
The runner-up for our weekly list is Wasatch’s Micro Cap Fund (WMICX). The fund carries an outstanding trailing one-year performance of 59.08%. It comes with an expense ratio of 1.66%.
The investment strategy of the fund is to invest at least 80% of its assets in stocks that have a market capitalization of less than $1.5 billion. Up to 30% of the fund may be allocated to international developed or emerging market equities as well. The fund uses the Russell Microcap Index as its benchmark portfolio.
Daniel Chace,CFA, is listed as the primary portfolio manager of the fund who has been managing the fund since January 2004. He is supported by Kenneth A. Korngiebel, CFA.
The portfolio of the fund currently holds 71 different assets with the top five listed as Kornit Digital Ltd. 3.1%, Silk Road Medical, Inc. 2.8%, Purple Innovation, Inc. 2.8%, Open Lending Corp. Class A 2.8% and GenMark Diagnostics, Inc. 2.7%. The five biggest sector weightings in the fund are healthcare 34.4%, information technology 22.0%, consumer discretionary 18.0%, industrials 13.8% and financials 3.6%.
Find out the funds suitable for your portfolio by using our free Screener.
3. Royce Micro-Cap Investment Fund (RYOTX)
Finally, the Micro-Cap Investment Fund (RYOTX) offered by Royce rounds out our top three selections for this week. It comes with a trailing one-year performance of 22.40%. It comes with a slightly lower expense ratio at 1.24% compared to the other funds in this week’s list.
The investment strategy of the fund is to invest at least 80% of its assets in stocks that trade in the Russell Microcap Index. It may allocate up to 25% of its portfolio in foreign securities from developed and emerging markets as well. The fund uses the Russell Microcap Index as its benchmark portfolio.
Brendan J. Hartman has been managing the fund since May 2013. James P. Stoeffel later joined the team in May 2015.
The fund’s portfolio currently has 131 assets with the top five sector weightings in information technology 25.8%, industrials 22.9%, financials 14.2%, healthcare 13.7% and consumer discretionary 11.6%.
Want to know more about portfolio rebalancing? Click here.
Our expert analysis of the top three will give you insight so you know what the best micro-cap equity fund is that fits your portfolio needs. And don’t forget to sign up for our free newsletter to get the latest insights on mutual funds!
Make sure to visit our News section to catch up with the latest news about mutual fund performance.
Note: Data as of December 2, 2020.
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
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Find out why $30 trillon is invested in mutual funds.
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Find out why $30 trillon is invested in mutual funds.
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First, we select the top trending category from more than 200 categories listed on MutualFunds.com based on the percentage increase in monthly viewership. From the top trending category, we select the top three funds with the highest one-year trailing total returns. To ensure the quality and staying power of funds, we only look at those mutual funds with a minimum of $100 million in assets and a track record of at least three years. We also remove those mutual funds that are closed to new investors and are not available for investment outside registered accounts such as retirement or 529 accounts.
In this week’s edition, we analyze the top three Micro-Cap Equity Funds. Typically, these funds specialize in investing in companies or ETFs that have a market capitalization of $1.5 billion or less.
As the markets and the global economy recover from the COVID-19 pandemic, investors are looking for ways to “catch up” on lost gains. One way to achieve higher gains is by investing in smaller, more volatile stocks that have the ability to generate higher-than-average earnings growth. With more businesses still adapting to the new global paradigm post-coronavirus, small-cap stocks are well positioned to outperform other classes.
Micro-Cap Equity Funds typically invest in companies that have a market capitalization of $1.5 billion or less – although lower benchmarks like $1 billion or under are common. While they are usually diversified on a regional basis by investing in both domestic and international equities, the stipulation that all stocks held must be under a certain market cap makes these funds one of the most volatile mutual funds available and suited for investors who understand the risks involved.
Our breakdown of each fund includes key aspects such as trailing one-year performance, fund expenses, investment style and management teams to give you an overview of how these funds hold up against their peers.
Be sure to check out the Micro-Cap Equity Funds page to find out more about the other funds in this category as well.
1. Lord Abbett Micro Cap Growth (LAMGX)
Taking the top spot on our list this week is Lord Abbett’s Micro Cap Growth Fund (LAMGX). It has a stellar trailing one-year performance of 66.86%. It comes with an adjusted expense ratio of 1.31%, placing it solidly in the middle of the pack when it comes to investor fees.
The investment strategy of the fund is to invest at least 80% of its assets in stocks with a market capitalization of $1 billion or less. Management uses fundamental analysis to identify potential holdings and select stocks that have the potential to generate faster-than-average earnings growth. It is benchmarked to the Russell Microcap Index.
The lead portfolio manager of the fund is F. Thomas O’Halloran, J.D., CFA, who has been managing the fund since March 2006. He is supported by Matthew R. DeCicco, CFA, Vernon T. Bice and Steven H. Wortman.
The fund’s portfolio is currently composed of 89 different assets with the top five sector weights being healthcare 44.26%, technology 18.98%, consumer cyclical 13.27%, industrials 10.97% and communication services 4.05%. The five largest holdings include Calix Networks, Inc. 2.9%, Cerence Inc 2.4%, Select Comfort Corp. 2.1%, Axonics Modulation Technologies Inc. 2.0% and Chart Industries, Inc. 2.0% .
Learn more about different Portfolio Management concepts here.
2. Wasatch Micro Cap Fund (WMICX)
The runner-up for our weekly list is Wasatch’s Micro Cap Fund (WMICX). The fund carries an outstanding trailing one-year performance of 59.08%. It comes with an expense ratio of 1.66%.
The investment strategy of the fund is to invest at least 80% of its assets in stocks that have a market capitalization of less than $1.5 billion. Up to 30% of the fund may be allocated to international developed or emerging market equities as well. The fund uses the Russell Microcap Index as its benchmark portfolio.
Daniel Chace,CFA, is listed as the primary portfolio manager of the fund who has been managing the fund since January 2004. He is supported by Kenneth A. Korngiebel, CFA.
The portfolio of the fund currently holds 71 different assets with the top five listed as Kornit Digital Ltd. 3.1%, Silk Road Medical, Inc. 2.8%, Purple Innovation, Inc. 2.8%, Open Lending Corp. Class A 2.8% and GenMark Diagnostics, Inc. 2.7%. The five biggest sector weightings in the fund are healthcare 34.4%, information technology 22.0%, consumer discretionary 18.0%, industrials 13.8% and financials 3.6%.
Find out the funds suitable for your portfolio by using our free Screener.
3. Royce Micro-Cap Investment Fund (RYOTX)
Finally, the Micro-Cap Investment Fund (RYOTX) offered by Royce rounds out our top three selections for this week. It comes with a trailing one-year performance of 22.40%. It comes with a slightly lower expense ratio at 1.24% compared to the other funds in this week’s list.
The investment strategy of the fund is to invest at least 80% of its assets in stocks that trade in the Russell Microcap Index. It may allocate up to 25% of its portfolio in foreign securities from developed and emerging markets as well. The fund uses the Russell Microcap Index as its benchmark portfolio.
Brendan J. Hartman has been managing the fund since May 2013. James P. Stoeffel later joined the team in May 2015.
The fund’s portfolio currently has 131 assets with the top five sector weightings in information technology 25.8%, industrials 22.9%, financials 14.2%, healthcare 13.7% and consumer discretionary 11.6%.
Want to know more about portfolio rebalancing? Click here.
Our expert analysis of the top three will give you insight so you know what the best micro-cap equity fund is that fits your portfolio needs. And don’t forget to sign up for our free newsletter to get the latest insights on mutual funds!
Make sure to visit our News section to catch up with the latest news about mutual fund performance.
Note: Data as of December 2, 2020.
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
With broker-dealers and agents now acting in favor of clients, investors may be...
Justin Kuepper
|
Let’s take a look at what sets China apart from other emerging markets,...
News
Iuri Struta
|
Check out the latest edition of mutual fund scorecard.
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...