According to Morningstar.com, small-cap specialist Wasatch is to opened several closed funds on January 31st, 2007. If you are looking to add small-cap funds to your portfolio, this may be a chance. However, there are restrictions. Wasatch Fund website says the following three funds will be available to existing investors:
Wasatch Small Cap Value Fund (WAAEX) – Style: Small blend, ER: 1.18%, 5-year return: 7.74%
Wasatch Small Cap Growth Fund (WMCVX) – Style: Small blend, ER: 1.68%, 5-year return: 13.87%
Meanwhile, Wasatch Ultra Growth Fund (WAMCX) (Small growth, 1.48%, 5.90%) will be open to all investors.
I used to own WAAEX for several years until I sold all my shares early last year. The main reason was the close of the fund since 2001 so I wasn't able to make any contribution in the past five years. My decision also has something to do with the relatively high expense (ER) ratio, now at 1.18%. Actually, the Wasatch funds all have high ERs, partly because they are all most small- and mid-cap funds, which usually have high ERs due to their investment objective as compared to large-cap funds. Also the close of the funds had the sizes of the funds under control, but didn't help to bring down the ERs.
If you enjoyed reading this post, subscribe to the RSS feed.
This article was originally written or modified on . If you enjoyed reading this post, please consider subscribing to my full RSS feed. Or you can also choose to have free daily updates delivered right to your inbox.
EverBank Money Market Account 1.25%: Open an EverBank Money Market Account with a minimum balance of $1,500 and earn 1.25% bonus rate for the first six months. The first year APY is 1.01% for account balance up to $50,000. Find out more about this offer.