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Part of the question is, "what are you looking for?" Small caps come in many flavors (domestic, global, international, dividend-oriented, absolute return, low-vol, microcap, deep value ...), so it's hard to say "here's the right answer" without a better sense of the question.
One place to browse might be the Observer's fund dashboard, which provides a synoptic look at every fund we've profiled and a link to their write-ups.
VSCIX. It's a passive index fund. Since MSCFX is closed to new investors, these days. But look to see if/when it may re-open. VSCIX is a Vanguard fund. Wife's 403b. So you might not qualify for that particular CLASS of shares. Anyhow, you'll enjoy the miniscule fees over at Vanguard. Look at VSMAX. But it requires $10,000.00 to get in, at first. Same with VSGAX. Surely less required if in an IRA or 401k/403b.
Thanks for all of the recommendations. I'll check them out. I should have been more specific. I was looking for a domestic small cap fund (blend or growth).
I can certainly agree about PRDSX. YES! I also held PRSVX for a season, but was always just a bit disappointed with it. I have zilch experience with the others. Good call!
I've got to agree with our Professor. Without more information, naming funds is not particularly productive. (Even limited to blend/growth small cap, tossing out names without knowing the objective is hit or miss.) In addition, tossing up funds without any explanation of why you think it is a good suggestion isn't all that helpful.
Kudos to Crash for adding a little text (and for editing out the original suggestion of MSCFX). I'm curious - since Vanguard small cap index and Vanguard small cap growth are listed, but Vanguard small cap value (VSIAX / VSIVX) isn't, does this imply a suggestion that one lean toward growth, or at least away from value?
Regarding purchasing Vanguard index funds - there are few brokers where you can purchase Admiral class shares outside of Vanguard. (I used to say none, but someone posted otherwise, though I forget where.) So I'm skeptical that you can purchase them for under $10K even in an IRA.
However, you can purchase the ETF class shares with a minimum of one share. VB (for VSMAX) and VBK (for VSGAX). Same ERs, much easier access.
Since we're tossing out random funds, I'll play the game. ASVIX. (Lipper classifies this as small cap core.)
- Solid performance - Truly small cap ($1.6B average, vs. $1.9B median for small cap funds per M*) - Fairly diversified (21% in top 10 stocks; some may prefer concentrated funds) - Stable management (since 2008/2010) - Not too volatile, relatively speaking (which I consider important for small cap funds that can have wild rides) - Respectable 2008 (-27.6% vs. -32% for peers, -37% for S&P 500) albeit under old management - Soft close - the fund is fairly sizeable ($1.6B), but this is mitigated in part by a broad portfolio (100+ securities), and in part by closing the fund to some investors.
Depending on how much of a chance you want to take you might consider AOFAX, Alger Small Cap Focus. Amy Zhang came to the fund from BCSIX just over a year ago and she's built a portfolio very similar to the Brown fund so far. Whether or not she has the special sauce to do as well on her own over time is still to be determined but it certainly appears her approach is very similar and there's no question Brown Small Cap has an admirable record. Her portfolio is way out to the right on the growth spectrum and I haven't bought the fund because I have some concerns about valuations but its an option that will grow more and more attractive if she continues to perform well and even more if valuations were to revert to the mean.
Sorry. If you bought any of those funds in 2009, you would come out okay and wouldn't really have any reason to complain if you didn't buy the highest performing one of the lot.
Question now is how will they do next 10 years. I'm buying ICMAX and PVFIX.
From @msf: "...I'm curious - since Vanguard small cap index and Vanguard small cap growth are listed, but Vanguard small cap value (VSIAX / VSIVX) isn't, does this imply a suggestion that one lean toward growth, or at least away from value?..." Reply: No, I was too tired last night to dig any further, that's all.
BCSIX, closed, is the M* choice for small-cap growth. It's a health science and tech fund and concentrated. One fund that has out performed it over the past few years is GSXAX, more a SC blend and one that is light on health and tech relative to the benchmarks. I used to hold HSSCX and I still think it's a good choice. I was a bit put off by it holding SC index ETFs as the two top positions. What's that called? Active inactive? BTW, I use other funds for SC international.
Comments
Part of the question is, "what are you looking for?" Small caps come in many flavors (domestic, global, international, dividend-oriented, absolute return, low-vol, microcap, deep value ...), so it's hard to say "here's the right answer" without a better sense of the question.
One place to browse might be the Observer's fund dashboard, which provides a synoptic look at every fund we've profiled and a link to their write-ups.
Take care,
David
Regards,
Ted
1. Small Cap Growth Funds:
http://money.usnews.com/funds/mutual-funds/rankings/small-growth
2. Small Cap Value Funds:
http://money.usnews.com/funds/mutual-funds/rankings/small-value
3. Small Cap Blends Funds:
http://money.usnews.com/funds/mutual-funds/rankings/small-blend
4. Foreign Small/Mid Value Funds
http://money.usnews.com/funds/mutual-funds/rankings/foreign-small-mid-value
5. Foreign Small/ Mid Growth Funds:
http://money.usnews.com/funds/mutual-funds/rankings/foreign-small-mid-growth:
6. Foreign Small/Mid Blend Funds:
http://money.usnews.com/funds/mutual-funds/rankings/foreign-small-mid-blend
Kudos to Crash for adding a little text (and for editing out the original suggestion of MSCFX). I'm curious - since Vanguard small cap index and Vanguard small cap growth are listed, but Vanguard small cap value (VSIAX / VSIVX) isn't, does this imply a suggestion that one lean toward growth, or at least away from value?
Regarding purchasing Vanguard index funds - there are few brokers where you can purchase Admiral class shares outside of Vanguard. (I used to say none, but someone posted otherwise, though I forget where.) So I'm skeptical that you can purchase them for under $10K even in an IRA.
However, you can purchase the ETF class shares with a minimum of one share. VB (for VSMAX) and VBK (for VSGAX). Same ERs, much easier access.
Since we're tossing out random funds, I'll play the game. ASVIX. (Lipper classifies this as small cap core.)
- Solid performance
- Truly small cap ($1.6B average, vs. $1.9B median for small cap funds per M*)
- Fairly diversified (21% in top 10 stocks; some may prefer concentrated funds)
- Stable management (since 2008/2010)
- Not too volatile, relatively speaking (which I consider important for small cap funds that can have wild rides)
- Respectable 2008 (-27.6% vs. -32% for peers, -37% for S&P 500) albeit under old management
- Soft close - the fund is fairly sizeable ($1.6B), but this is mitigated in part by a broad portfolio (100+ securities), and in part by closing the fund to some investors.
Question now is how will they do next 10 years. I'm buying ICMAX and PVFIX.
Reply: No, I was too tired last night to dig any further, that's all.