The Most Promising Small Cap Funds to Watch in 2022
Small cap funds have the potential to deliver high returns over the long run, making them an attractive option for investors looking to grow their money. However, with so many small cap funds available in the market, it can be difficult to choose the right one for your portfolio. In this article, we'll take a look at some of the most promising small cap funds to watch in 2022.
1. Vanguard Small-Cap Index Fund (VSMAX)
The Vanguard Small-Cap Index Fund tracks the performance of the CRSP US Small Cap Index and invests in small cap companies in the United States. The fund has a low expense ratio of 0.05% and a minimum investment of $3,000. The fund has delivered consistent returns over time and has outperformed its benchmark over the long term.
2. T. Rowe Price Small-Cap Stock Fund (OTCFX)
The T. Rowe Price Small-Cap Stock Fund invests in small cap companies with strong growth potential. The fund has a proven track record of delivering strong returns over time and has consistently beaten its benchmark. The fund has a minimum investment of $2,500 and an expense ratio of 0.85%.
3. Fidelity Small Cap Discovery Fund (FSCRX)
The Fidelity Small Cap Discovery Fund invests in small cap companies with strong growth potential and a competitive advantage. The fund has a low expense ratio of 0.94% and a minimum investment of $2,500. The fund has delivered strong returns over time and has consistently beaten its benchmark.
4. Invesco Small Cap Fund (SCHAS)
The Invesco Small Cap Fund invests in small cap companies in the United States. The fund has a minimum investment of $1,000 and an expense ratio of 0.94%. The fund has a proven track record of delivering consistent returns over time and has outperformed its benchmark over the long term.
5. iShares Core S&P Small-Cap ETF (IJR)
The iShares Core S&P Small-Cap ETF tracks the performance of the S&P Small-Cap 600 Index and invests in small cap companies in the United States. The fund has a low expense ratio of 0.06% and a minimum investment of $1. The fund has delivered consistent returns over time and has outperformed its benchmark over the long term.
Conclusion
Small cap funds can be a great way to achieve higher returns over the long run, but it's important to choose the right one for your portfolio. The funds listed above have a proven track record of delivering consistent returns and outperforming their benchmark over the long term. It's always important to do your own research and consult with a financial advisor before making any investment decisions.