Small Value

Small value represents an investment style that focuses on small investment value. Small-value stocks are in the bottom 10% of the capitalization of the US equity market and are typically less expensive or growing more slowly than other large-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). Small value corresponds to the bottom row, left column quadrant of the Morningstar Style Box.

About the Morningstar Style Box: The Morningstar Style Box is a nine-square grid that provides a graphical representation of the investment style of stocks and mutual funds. Two of the three style categories are value and growth, but the third category differs by security type. For funds, the central column represents blend funds, which include value, core, and growth stocks. For stocks, this column represents core stocks, which are stocks for which neither growth nor value characteristics are dominant.