Investors gravitate to small-company stocks for various reasons. Some want a dose of small companies in their portfolios to round out their exposure to the large-company stocks that dominate the market. Other investors may want to tilt their portfolios toward small caps after a long period of large-cap outperformance.
What Are Small-/Mid-Cap Funds?
Small- and mid-cap portfolios generally invest in smaller US companies. The US mid-cap range for market capitalization represents 20% of the total capitalization of the US equity market. Stocks in the bottom 10% of the capitalization of the US equity market are defined as small cap. Some portfolios may own a mix of small-, mid-, and large-cap stocks. This group covers a range of value and growth characteristics, encompassing six Morningstar Categories: mid-cap value, mid-cap growth, mid-cap blend, small-value, small-growth, and small-value.
The 31 Best Small-/Mid-Cap Funds and ETFs to Buy for 2026
To find the best small-/mid-cap funds and ETFs to buy, we screened for the lowest-cost primary share classes earning a Morningstar Medalist Rating of Gold with 100% analyst coverage. All the funds and ETFs on the list fall into one of the six small- and mid-cap Morningstar Categories and have at least $100 million in assets. All data is as of Dec. 5.
- Baron Discovery Fund BDFIX
- Boston Trust SMID Cap Fund BTSMX
- Boston Trust Walden Small Cap Fund BOSOX
- Champlain Mid Cap Fund CIPIX
- Champlain Small Company Fund CIPNX
- DFA US Small Cap Portfolio DFSTX
- Dimensional US Targeted Value ETF DFAT
- Fidelity Mid Cap Index Fund FSMDX
- Harbor Mid Cap Value Fund HNMVX
- John Hancock Funds Disciplined Value Mid Cap Fund JVMRX
- LSV Small Cap Value Fund LSVQX
- MFS Mid Cap Value Fund MVCKX
- PrimeCap Odyssey Aggressive Growth Fund POAGX
- Principal MidCap Fund PMAQX
- Schwab US Mid-Cap Index Fund SWMCX
- State Street SPDR Portfolio S&P 400 Mid Cap ETF SPMD
- State Street SPDR Portfolio S&P 600 Small Cap ETF SPSM
- State Street SPDR Russell 1000 Yield Focus ETF ONEY
- Vanguard Mid Cap Index Fund VO
- Vanguard Mid-Cap Value Index Fund VOE
- Vanguard S&P Mid-Cap 400 Index Fund IVOO
- Vanguard S&P Mid-Cap 400 Growth Index Fund VMFGX
- Vanguard S&P Mid-Cap 400 Value Index Fund VMFVX
- Vanguard S&P Small-Cap 600 Index Fund VSMSX
- Vanguard Small Cap Growth Index Fund VSGIX
- Vanguard Small Cap Value Index Fund VSIIX
- Vanguard Strategic Equity Fund VSEQX
- Vanguard Tax Managed Small Cap Fund VTSIX
- Victory Sycamore Established Value Fund VEVRX
- Victory Sycamore Small Company Opportunity Fund VSORX
- iShares Russell Mid-Cap Index Fund BRMKX
Because the screen was created with the lowest-cost share class for each fund, some may be listed with share classes that are not accessible to individual investors outside of retirement plans, or they may be aimed at institutional investors and require large minimum investments. The individual investor versions of those funds may carry higher fees, reducing returns to shareholders. In addition, Medalist Ratings may differ among the share classes of a fund.
Morningstar expects the highly rated small-/mid-cap funds on this list to outperform their peers over a full market cycle. But even though all the funds on our list fall into the same category, they may practice different strategies, and therefore behave differently from each other. Investors need to do some homework to understand exactly what a particular fund invests in before buying.
How to Find More of the Best Funds and ETFs to Buy for the Long Term
Given their high Morningstar Medalist Ratings, we expect the top-rated funds on our list to outperform over a full market cycle. That being said, investors may want to expand their search beyond this list, using parameters that matter to them. Here are more ways to find more ETFs and mutual funds:
- Use the Morningstar Investor screener to create your own list of funds to investigate further.
- Explore Morningstar Medalist funds on our Best Investments page.
- Read our latest fund insights and analysis on Morningstar.com.