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Protect Your Downside With These 2 Small-Growth Funds

While Wasatch Core Growth and Conestoga Small Cap both offer downside protection, investors should be aware of their very different sector exposures.

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Laura Lallos: With small-cap benchmarks lagging in 2015, investors may be tempted to buy in, but also wary. Morningstar FundInvestor newsletter recently came up with a list of small-cap Morningstar Medalists that have had lower downside capture ratios than the Vanguard Small Cap Index (NAESX).

That is to say these funds have performed better than small-cap peers in down markets during the past decade. Two of them are Silver-rated small-growth funds: Wasatch Core Growth (WGROX) and Conestoga Small Cap (CCASX). They both have below-average Morningstar Risk ratings, competitive performance, reasonable expense ratios, small asset bases, and long-tenured managers.

Laura Lallos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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