Fund Evaluator:

GMO US Small Cap Value VI Overview

GMO US Small Cap Value VI (GCAVX) is an actively managed U.S. Equity Small Value fund. GMO launched the fund in 2019.

The investment seeks total return in excess of its benchmark, the S&P SmallCap 600 Value Index. The adviser seeks to achieve the fund's investment objective by investing primarily in equities of U.S. companies that are included in the S&P 600 Index or whose market capitalization at the time of investment is less than that of the 1000 largest publicly held companies. As an alternative to investing directly in equities, it may invest in exchange-traded and OTC derivatives and ETFs. Under normal circumstances, the fund invests directly and indirectly at least 80% of its assets in equities tied economically to the United States.

About GMO US Small Cap Value VI (GCAVX)

There are 2 members of the management team with an average tenure of 2.33 years: George Sakoulis (2024), Warren Chiang (2024). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P Composite 1500 (TR) USD index with a weighting of 100% and S&P SmallCap 600 Value TR USD index with a weighting of 100%. GMO US Small Cap Value VI has 246 securities in its portfolio. The top 10 holdings constitute 18.9% 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.

GMO US Small Cap Value VI is part of the Equity global asset class and is within the U.S. Equity fund group. GMO US Small Cap Value VI has 2.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 95.7%. There is 2.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.5% (0.5% domestic bond, 0.0% foreign bond and 0.0% convertible bond). GMO US Small Cap Value VI has 1.0% of the portfolio in cash.

Assets Under Management

The fund has $60 million in total assets, which is below the $417 million average for the Small 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.

GCAVX 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 GMO US Small Cap Value VI expense ratio is average compared to funds in the Small Value category. GMO US Small Cap Value VI has an expense ratio of 0.50%, 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. GMO US Small Cap Value VI has a portfolio turnover rate of 92%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 128% for the Small Value category.

Recently, in the month of July 2026, GMO US Small Cap Value VI returned -0.1%, which earned it a grade of C, as the Small Value category had an average return of -0.4%. 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.

GMO US Small Cap Value VI has a trailing yield of 1.29%, which is above the 0.77% category average. The fund normally distributes its income semi-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.

GMO US Small Cap Value VI Grades

Year to date, the fund has returned 20.4%, 0.3 percentage points better than the category, which translates into a grade of C. The fund has returned 40.1% over the past year (grade of A), 18.0% over the past three years (grade of A) and 12.1% per year over the past five years (grade of A).

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