Fund Evaluator:

Bridge Builder Small Cap Fund Overview

Bridge Builder Small Cap Fund (BBVSX) is an actively managed U.S. Equity Mid-Cap Value fund. Bridge Builder launched the fund in 2015.

The investment seeks to provide capital appreciation. The fund primarily invests in equity securities of small capitalization companies. The fund invests, under normal market conditions, at least 80% of its net assets (plus the amount of borrowings for investment purposes) in the securities of small capitalization companies and other instruments, such as derivative instruments, with economic characteristics similar to securities of small capitalization companies, and investment companies that seek to track the performance of securities of small capitalization companies.

About Bridge Builder Small Cap Fund (BBVSX)

There are 20 members of the management team with an average tenure of 1.75 years: Matthew McGeary (2026), Frederick Konopka (2026), Daniel Mahr (2026), Matthew Spitznagle (2026), Jeff John (2021), Edmund Woods (2026), Jason Wulff (2026), John Lewicke (2026), Nick Zylkowski (2026), Damien Zhang (2026), Richard Offen (2019), Ryan Cope (2021), Jeremy Field (2026), Jeffrey Allen (2025), Alexander Waldorf (2025), Brian Causey (2026), Evgenia Gvozdeva (2026), Christina Shockley (2026), Roger Vogel (2015), Ryan Crane (2026). 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 Value TR USD index with a weighting of 100%. Bridge Builder Small Cap Fund has 1785 securities in its portfolio. The top 10 holdings constitute 12.8% 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 Small Cap Fund is part of the Equity global asset class and is within the U.S. Equity fund group. Bridge Builder Small Cap Fund has 2.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 92.9%. There is 2.3% 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 Small Cap Fund has 4.8% of the portfolio in cash.

Assets Under Management

The fund has $7 billion in total assets, which is above the $634 million average for the Mid-Cap Value 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.

BBVSX 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 Small Cap Fund expense ratio is below average compared to funds in the Mid-Cap Value category. Bridge Builder Small Cap Fund has an expense ratio of 0.33%, which is 68% 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 Small Cap Fund has a portfolio turnover rate of 56%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 53% for the Mid-Cap Value category.

Recently, in the month of October 2026, Bridge Builder Small Cap Fund returned 2.3%, which earned it a grade of F, as the Mid-Cap Value category had an average return of 5.9%. 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 Small Cap Fund has a trailing yield of 1.11%, which is above the 0.86% 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 Small Cap Fund Grades

Year to date, the fund has returned 13.5%, 3.4 percentage points worse than the category, which translates into a grade of D. The fund has returned 16.3% over the past year (grade of D), 18.1% over the past three years (grade of C) and 8.2% per year over the past five years (grade of C) and 10.2% per year over the past 10 years (grade of C).

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