Small Value Medalist Funds

Here we highlight mutual funds and ETFs that typically focus on stocks in the bottom 10% of the capitalization of the US equity market that are less expensive or growing more slowly than other mid-cap stocks. Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow). We narrow the list to those strategies that also received a Gold, Silver, or Bronze Medalist Rating by our analysts. The Morningstar Medalist Rating is the forward-looking assessment of an investment strategy. The rating is on a five-tier scale running from Gold to Negative. For actively managed funds, Morningstar assigns Gold, Silver, and Bronze ratings to vehicles expected to add value over the long term when compared with a relevant Morningstar Category index after accounting for fees and risk. For passive strategies, funds and ETFs with the top ratings are expected to deliver alpha that exceeds the lesser of the category median net alpha, or zero, over the long term.