Growth and Value Fund Performance Comparison

• Main Authors: Lim Min, Aminah Shari, Leah, Tseu Lee Yah, Lovenigasri Rajendran, Shirley Ling, Teo, Qi Mei
• Format: Article
• Language: English; English
• Published: Human Resource Management Academic Research Society 2022
• Subjects: HG4501-6051 Investment, capital formation, speculation
• Online Access: https://eprints.ums.edu.my/id/eprint/34329/1/Abstract.pdf; https://eprints.ums.edu.my/id/eprint/34329/2/Full%20text.pdf; https://eprints.ums.edu.my/id/eprint/34329/; https://hrmars.com/index.php/IJARAFMS/article/view/14283/Growth-and-Value-Fund-Performance-Comparison; http://dx.doi.org/10.6007/IJARAFMS/v12-i2/14283

This article examines and contrasts the performance of small-cap growth and small-cap value funds in the United States. Between May 2016 and May 2022, a total of 139 small-cap growth funds and 97 small-cap value funds were collected via Yahoo Finance. The weekly data was then used to calculate the Treynor ratio, Sharpe ratio, and Jensen alpha. The finding shows that US small-cap value funds appear to be superior to small-cap growth funds. The Sharpe and Treynor ratios demonstrate the higher risk-adjusted performance of small-cap value funds relative to their benchmarks. whereas the Sharpe ratio is the only indicator of outperformance for small-cap growth funds. Regarding the Jensen alpha, value funds possessed positive alphas and outperformed the benchmark. Therefore, the results of this study could aid investors in picking a portfolio with superior risk-adjusted performance.