4 / 5 Stars
4 4 3 2 3
Zacks Investment Research
Standard & Poor's
2 / 5 Stars
#68 in Small Growth
U.S. News evaluated 211 Small Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 35.07 percent over the past year, 17.09 percent over the past three years, 22.22 percent over the past five years, and 10.13 percent over the past decade.
|Trailing Returns||Updated 10.31.2013|
|Year to date||32.1%|
|3 Years (Annualized)||17.1%|
|5 Years (Annualized)||22.2%|
|10 Years (Annualized)||10.1%|
After undergoing a prolonged seesaw ride, Ivy Small Cap Growth finally seems to be finding its rhythm.
As of November 05, 2013, the fund has assets totaling almost $1.09 billion invested in 102 different holdings. Its portfolio consists of shares of small companies.
For Ivy Small Cap Growth, 2010 was a banner year, with returns eclipsing 35 percent. That rally extends the fund’s solid 2009 performance; that year, it returned 43 percent. Lately, the fund has been overweight to technology companies. For the fund, 2010's outperformance coincided with a change at the top. Manager Timothy Miller took over the portfolio in April 2010. The Ivy funds are owned by Waddell & Reed. Miller also manages Waddell & Reed Small Cap. Overall, the two portfolios are nearly identical. Miller was previously a manager for Invesco. Ivy Small Cap Growth has returned 35.07 percent over the past year and 17.09 percent over the past three years.
Despite its recent streak, the fund has occasionally been somewhat erratic. In both 2003 and 2006, for instance, it landed in the bottom quartile of Morningstar’s small-growth category. One bright spot over the years has been the fund’s ability to lose less than the competition in rough markets. In 2001, for example, the fund outperformed the broader market by about 10 percent. The fund has returned 22.22 percent over the past five years and 10.13 percent over the past decade.
The fund looks for quickly growing companies with solid long-term potential. Says its prospectus: “[Management] may look at a number of factors regarding a company, such as: aggressive or creative, yet strong, management, technological or specialized expertise, new or unique products or services, entry into new or emerging industries, growth in earnings/growth in sales/positive cash flows, security size and liquidity.”
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
Timothy Miller took over the fund in April 2010.
Ivy Small Cap Growth Fund has an expense ratio of 1.49 percent.
Like all stock funds, this one comes with some risks. Additionally, small-cap stocks can be more volatile than the broader market.