Ticker: VSCAX (Class A)

Invesco Small Cap Value Fund

Invests in small companies that may not be fully appreciated by the market.

Product details Fact sheet

Reasons to invest

This fund seeks to provide exposure to smaller-cap companies whose stock price has become disconnected from the intrinsic value of the business. Maintaining a longer-term investment horizon allows this traditional approach to value investing to play out across cycles.

★★★★★

5-star Morningstar rating - Small Value Category

As of 9/30/2024 the Fund had an overall rating, based on risk-adjusted returns, of 5 stars out of 446 funds and was rated 5 stars out of 446 funds, 5 stars out of 420 funds and 4 stars out of 326 funds for the 3-, 5- and 10-year periods, respectively.

Patient approach

Focusing on companies’ intrinsic value may create opportunities where investors may have overreacted to market noise.

High conviction approach

We use a highly selective process to identify undervalued stocks, resulting in a portfolio that is distinct from the benchmarks.

Time-tested

Our tried and true process has been tested through various market and economic cycles.

FAQ

The questions that are uppermost on the minds of financial professionals and their clients.

Small-cap stocks are typically considered companies with a total market capitalization of less than about $2 billion. Value stocks are companies with share prices trading below intrinsic value based on fundamental metrics such as price-to-earnings (P/E) ratios, as opposed to growth stocks. Small-cap value stocks combine the factors of smaller companies and a value-based investing approach.

When analyzing small-cap value stocks, we believe Intrinsic value of a business is determined by cash flow and is independent of market price. We believe market prices at times disconnect from intrinsic value due to investor short-term fears and we seek to buy when a stock’s market price is significantly below our estimate of intrinsic value.

Small-cap value stocks can potentially be volatile because they may be less mature companies than large caps and may trade at lower P/E ratios. That’s one reason why we take a long-term investment horizon. Our portfolio positioning is driven by long-term valuation opportunities rather than benchmark or peer weighting  We also seek to diversify investments across multiple industries.

The fund is designed to provide investors exposure to smaller-cap companies whose stock price has become disconnected from the intrinsic value of the business. Maintaining a longer-term investment horizon typically allows this traditional approach to value investing to play out across cycles. The fund can also be used by investors seeking to take an active approach to U.S. small-cap value stocks.

The portfolio managers take a patient approach while a focus on companies’ intrinsic value creates opportunities where investors may have overreacted to market noise. We also employ a high-conviction, active approach and a highly selective process to identify undervalued stocks, resulting in a portfolio that is distinct from the benchmarks. Finally, our tried and true process has been tested through various market and economic cycles.

Research related funds

To learn more about our US small cap offerings, explore the fund below.

  • US Equity

    OSCAX

    Mutual Fund

    Invesco Main Street Small Cap Fund

    Equity

Footnotes

  • The Fund’s investment objective is long-term growth of capital.

  • Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance, placing more emphasis on downward variations and rewarding consistent performance. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. Ratings are calculated for funds with at least a three year history. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable, excluding sales charges and including fees and expenses. ©2024 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. Ratings are subject to change monthly. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Ratings for other share classes may differ due to different performance characteristics.