The Top Five Small Cap Funds with the Lowest Fees
Investing in small cap funds can be a lucrative way to grow your wealth. Small cap funds invest in small companies that have potential for growth. However, fees can eat into your returns, so it's essential to find small cap funds with low fees. In this article, we'll list the top five small cap funds with the lowest fees.
1. Vanguard Small-Cap Index Fund Admiral Shares (VSMAX)
The Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) is a no-brainer for investors looking for a low-cost small cap fund. The fund invests in stocks of small-cap U.S. companies and boasts an expense ratio of just 0.05%. The fund has a four-star rating from Morningstar and has provided an average annual return of 14.92% since inception in 2010.
2. Schwab Small-Cap Index Fund (SWSSX)
The Schwab Small-Cap Index Fund (SWSSX) is another low-cost option for investors interested in small cap funds. The fund invests in stocks of small-cap U.S. companies and has an expense ratio of just 0.06%. The fund has a three-star rating from Morningstar and has provided an average annual return of 13.79% since inception in 2010.
3. iShares Russell 2000 ETF (IWM)
The iShares Russell 2000 ETF (IWM) is an exchange-traded fund (ETF) that tracks the Russell 2000 Index, which includes small-cap U.S. companies. The fund has an expense ratio of just 0.19%, making it a low-cost option. The fund has a four-star rating from Morningstar and has provided an average annual return of 12.98% since inception in 2001.
4. Fidelity Small Cap Index Fund (FSSNX)
The Fidelity Small Cap Index Fund (FSSNX) is another low-cost small cap fund option for investors. The fund invests in stocks of small-cap U.S. companies and has an expense ratio of just 0.025%. The fund has a three-star rating from Morningstar and has provided an average annual return of 14.11% since inception in 2011.
5. Schwab U.S. Small-Cap ETF (SCHA)
The Schwab U.S. Small-Cap ETF (SCHA) is an ETF that tracks the Dow Jones U.S. Small-Cap Total Stock Market Index, which includes small-cap U.S. companies. The fund has an expense ratio of just 0.04%, making it a low-cost option. The fund has a four-star rating from Morningstar and has provided an average annual return of 14.11% since inception in 2011.
In conclusion, by investing in the top five small cap funds with the lowest fees, investors can potentially maximize their returns. While past performance is not a guarantee of future results, investors can rest assured that these funds have a strong track record of success. It's important to diversify your portfolio and consult with a financial advisor before investing in any fund.