#United States #New York #Royce Small-Cap Trust #RVT #small-cap investing

An In-Depth Look at Royce Small-Cap Trust

As of December 31, 2025, Royce Small-Cap Trust (NYSE: RVT) stands out as the oldest and largest closed-end fund focused on small-cap investments. With an impressive weekly trading volume averaging around 1,494,105 shares, the trust continues to be a notable player in the investment landscape.

Key Insights and Performance Metrics

The Royce Small-Cap Trust has a net asset value (NAV) of $17.69 and a market price of $16.10. Its consistent performance is reflected in the average annual total returns over several timeframes:

• - One Month: NAV at 0.30% and Market at 2.41%
• - One Year: NAV at 14.03% and Market at 11.60%
• - Three Year: NAV at 16.03% and Market at 16.14%
• - Five Year: NAV at 8.10% and Market at 9.04%
• - Ten Year: NAV at 11.75% and Market at 12.29%

These results underscore the trust's strong performance, particularly in the medium and long term.

Investment Philosophy and Strategy

The fund primarily targets equity securities of small- and micro-cap companies, often presenting a higher risk compared to larger-cap investments. Despite the inherent risk, the diversification strategy employed by the Royce Small-Cap Trust aims to cushion against potential losses while enhancing the prospects for growth.

With approximately 65% of its total assets dedicated to these smaller companies, Royce emphasizes its capacity for discovering unique investment opportunities that may yield significant returns over time. Notably, the fund’s adviser boasts over 50 years of extensive investment experience in small-cap sectors, furthering its credibility and strategic planning.

Portfolio Highlights

In evaluating the fund's holdings, insightful diagnostics reveal:

• - Average Market Cap: $3,334.9 million
• - Weighted Average P/E Ratio: 19.1x
• - Weighted Average P/B Ratio: 2.2x
• - Net Assets: $2.16 billion

These figures provide a glimpse into the calculated approach used in selections, instrumental in maintaining the fund’s competitive edge.

Top Holdings and Sector Allocation

Delving deeper into the fund’s portfolio, the top ten positions currently reflect a diverse spectrum of investments:
1. IES Holdings: 2.2%
2. Assured Guaranty: 1.4%
3. APi Group: 1.2%
4. Arcosa: 1.1%
5. ESAB Corporation: 1.1%
6. Sprott: 1.0%
7. Brady Corporation Cl. A: 1.0%
8. International General Insurance Holdings: 1.0%
9. E-L Financial: 1.0%
10. SEI Investments: 1.0%

Additionally, the fund is notably diversified across various sectors:

• - Industrials: 25.6%
• - Financials: 20.8%
• - Information Technology: 14.1%
• - Health Care: 9.8%
• - Consumer Discretionary: 9.5%

Considerations for Investors

Investing in Royce Small-Cap Trust involves various considerations including investment goals, risks, fees, and expenses. The performance history reflects past trends, yet it’s crucial for potential investors to acknowledge that historical performance does not assure future results. The market price may fluctuate, impacting the initial investment's value when sold.

For more information or inquiries, interested parties can access daily net asset values through the official Royce Funds website or communicate directly for further assistance.

This overview of Royce Small-Cap Trust as of 2025 highlights its unique position in the investment space, driven by a robust investment strategy and a commitment to long-term capital growth, appealing to investors looking to diversify their portfolios within small-cap markets.