#United States #New York #Royce Small-Cap Trust #Closed-End Fund #small-cap investment

Overview of Royce Small-Cap Trust (RVT)

The Royce Small-Cap Trust, recognized as the oldest and largest small-cap closed-end fund, operates under the ticker symbol RVT on the New York Stock Exchange. As of July 31, 2025, this fund boasts an average weekly trading volume of around 1,343,647 shares, reflecting its popularity among investors. The management team has developed a robust track record over a span of more than 50 years in small- and micro-cap investments, positioning the trust uniquely in the financial market.

Performance Metrics

The fund aims for long-term capital growth by primarily allocating at least 65% of its assets to the equity securities of small- and micro-cap companies. As reported, the Net Asset Value (NAV) stands at $17.06, while the market price per share is $15.18. The average annual total returns reveal a consistent performance history, with noteworthy returns over varying time scales:

• - One-Month NAV: 1.91%
• - Year to Date NAV: 4.53%
• - One-Year NAV: 4.58%
• - Three-Year NAV: 10.33%
• - Five-Year NAV: 11.24%
• - Ten-Year NAV: 10.05%

These figures underscore the fund’s goal of growing investors' assets steadily over time, though past performance does not guarantee future results.

Investing in Small- and Micro-Cap Stocks

Investing in small-cap and micro-cap companies can yield higher returns but also entails heightened risks compared to larger-cap investments. This risk is intrinsically linked to the volatility and less predictable nature of smaller companies. Royce Small-Cap Trust effectively diversifies its portfolio, significantly mitigating risk through broad exposure across sectors.

Portfolio Analysis and Composition

The fund's average market capitalization is approximately $3.2 billion, with a weighted average Price/Earnings ratio of 18.5 and a Price/Book ratio of 2.1. With net assets totaling around $2.04 billion, the fund maintains a diversified hold across various sectors:

• - Industrials: 25.4%
• - Financials: 22.5%
• - Information Technology: 14.4%
• - Consumer Discretionary: 9.7%
• - Health Care: 9.3%

The top positions, which account for a percentage of net assets, include IES Holdings (2.1%), Assured Guaranty (1.4%), and APi Group (1.2%), among others. This diversified sector allocation is aimed at balancing the inherent risks associated with smaller-cap investments.

Considerations for Investors

Potential investors should carefully evaluate the fund’s investment goals and associated risks, fees, and expenses before engaging in any investment activities. Royce Small-Cap Trust’s shares may trade at a discount to their net asset value, making it imperative for investors to consider market conditions that can influence share prices.

Investing through the Royce Small-Cap Trust offers an opportunity to tap into the dynamics of small-cap securities, with the legacy of an experienced advisor who has weathered various market conditions over the years. Daily NAVs and performance updates can be accessed through the Royce Funds’ official website or brokerage platforms.

Conclusion

The Royce Small-Cap Trust remains a compelling investment avenue for those looking to diversify their portfolios with a focus on small- and micro-cap stocks. While the potential for high returns is attractive, it is essential to understand the risks involved in this segment of the market. The trust not only carries a legacy of success but also adapts to the evolving landscape of small-cap investments.