Fund Evaluator:

Bridge Builder Tax Managed Sm/Md Cp Overview

Bridge Builder Tax Managed Sm/Md Cp (BBTSX) is an actively managed U.S. Equity Mid-Cap Blend fund. Bridge Builder launched the fund in 2022.

The investment seeks to provide a tax‑efficient investment return consisting of capital appreciation. The fund invests at least 80% of its net assets (plus the amount of borrowings for investment purposes) in the securities of small- and mid‑capitalization companies and other instruments, such as certain investment companies, with economic characteristics that seek to track the performance of securities of small- and mid‑capitalization companies. It may also invest in other investment companies, including other open‑end or closed‑end investment companies and ETFs that have characteristics that are consistent with the fund’s investment objective.

About Bridge Builder Tax Managed Sm/Md Cp (BBTSX)

There are 17 members of the management team with an average tenure of 2.80 years: Richard Lee (2025), Brett Reiner (2022), Bryant VanCronkhite (2022), Michael Stein (2025), Matthew Renna (2025), Jennifer Sireklove (2022), Gregory Spiegel (2022), Felise Agranoff (2022), Shane Zweck (2022), Edward Richardson (2025), Jennifer Mihara (2024), Erik Turenchalk (2022), Rob Osborne (2026), Robert D'Alelio (2022), James Tringas (2022), William Muggia (2025), James MacGregor (2022). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell 2500 TR USD index with a weighting of 100%. Bridge Builder Tax Managed Sm/Md Cp has 941 securities in its portfolio. The top 10 holdings constitute 8.5% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Bridge Builder Tax Managed Sm/Md Cp is part of the Equity global asset class and is within the U.S. Equity fund group. Bridge Builder Tax Managed Sm/Md Cp has 3.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 95.5%. There is 3.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Bridge Builder Tax Managed Sm/Md Cp has 1.6% of the portfolio in cash.

Assets Under Management

The fund has $3 billion in total assets, which is above the $1 billion average for the Mid-Cap Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

BBTSX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Bridge Builder Tax Managed Sm/Md Cp expense ratio is average compared to funds in the Mid-Cap Blend category. Bridge Builder Tax Managed Sm/Md Cp has an expense ratio of 0.42%, which is 57% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Bridge Builder Tax Managed Sm/Md Cp has a portfolio turnover rate of 52%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 51% for the Mid-Cap Blend category.

Recently, in the month of July 2026, Bridge Builder Tax Managed Sm/Md Cp returned -2.8%, which earned it a grade of D, as the Mid-Cap Blend category had an average return of -1.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Bridge Builder Tax Managed Sm/Md Cp has a trailing yield of 0.67%, which is above the 0.48% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Bridge Builder Tax Managed Sm/Md Cp Grades

Year to date, the fund has returned 14.3%, 1.2 percentage points better than the category, which translates into a grade of C. The fund has returned 19.1% over the past year (grade of C) and 11.2% over the past three years (grade of D).

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