The Best Small-Cap Funds
These small-company-focused mutual funds and ETFs all earn Morningstar Analyst Ratings of Gold.
Investors gravitate to small companies for many reasons. Some want a small dose of small companies in their portfolios to round out their exposure to the overall stock market. Others may want to tilt their portfolios toward small caps after a period of large-cap outperformance, such as we've seen during the past several years. Still others may want to participate in what has been called the "small-cap effect," or the theory that smaller companies have greater growth opportunities than larger companies and, as a result, have greater total return potential over time.
Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.