Out of these small cap funds only which has the best potential over 10 years s c h a or FNDA or SPSM or ESML or VBK
8/10/2024 09:09am
**FNDA has the best potential over 10 years among the small-cap funds.** Here's the analysis to support this conclusion:
1. **Consistent Performance**: FNDA has shown consistent performance over various time frames, with annualized returns of 6.65% for 1 year, 8.41% for 3 years, 8.84% for 5 years, and 8.46% for 10 years. This indicates a strong and stable track record.
2. **Comparison with SCHX**: While SCHX has a higher 10-year return of 12.61%, it is important to note that SCHX is a large-cap ETF and not a small-cap fund. FNDA's consistent returns over various time frames suggest a more stable investment profile that aligns with the small-cap segment.
3. **Comparison with SPSM**: SPSM measures the performance of the small-cap segment by fundamental overall company scores, which are created using the RAFI Global Equity Investable Universe. While SPSM may offer potential for small-cap value stocks, FNDA's focus on small-cap growth stocks has shown more robust performance.
4. **Comparison with ESML**: ESML aims to track the performance of the S&P SmallCap 600 Index, which includes companies with market capitalizations below $2 billion. FNDA's focus on small-cap growth stocks indicates a potentially higher growth profile compared to ESML.
5. **Comparison with VBK**: VBK offers exposure to small-cap growth stocks, which may have higher growth potential but also higher risk. FNDA's focus on small-cap growth stocks suggests it may have a similar growth potential but with a more stable investment profile.
In conclusion, while all the small-cap funds have their own unique investment strategies, FNDA's consistent performance over various time frames and focus on small-cap growth stocks suggest it has the strongest potential over the 10-year horizon among the provided small-cap fund options.