Fund Evaluator:
Homestead Small Company Stock (HSCSX)
Follow This Fund
Best Performing in Small Blend Over the Last Year
| 67.2% | Royce Micro-Cap Invmt (RYOTX) |
| 54.3% | River Oak Discovery (RIVSX) |
| 48.4% | North Star Small Cap Value Investor (WSCVX) |
| 46.5% | Paradigm Value (PVFAX) |
| 46.0% | Nuveen Quant Small Cap Equity I (TSCHX) |
Fund Details
Homestead Small Company Stock Overview
Homestead Small Company Stock (HSCSX) is an actively managed U.S. Equity Small Blend fund. Homestead launched the fund in 1998.
The investment seeks long-term growth of capital for the long-term investor. The fund generally invests in stocks of companies that homestead advisers believes are attractive based on its investment process. Under normal circumstances, it will invest at least 80% of its net assets (plus borrowing for investment purposes) in common stocks of companies whose market capitalization, at the time of purchase, is within the range of the market capitalization of companies represented in the Russell 2000 Index.
About Homestead Small Company Stock (HSCSX)
There are 2 members of the management team with an average tenure of 5.42 years: James Polk (2019), Mark Iong (2023). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Russell 2000 TR USD index with a weighting of 100%. Homestead Small Company Stock has 61 securities in its portfolio. The top 10 holdings constitute 31.1% 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.
Homestead Small Company Stock is part of the Equity global asset class and is within the U.S. Equity fund group. Homestead Small Company Stock has 5.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 92.9%. There is 5.8% 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). Homestead Small Company Stock has 1.4% of the portfolio in cash.
Assets Under Management
The fund has $213 million in total assets, which is below the $694 million average for the Small 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.
HSCSX 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 Homestead Small Company Stock expense ratio is high compared to funds in the Small Blend category. Homestead Small Company Stock has an expense ratio of 1.09%, which is 4% higher than its category average, making the fund expense ratio grade a C. 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. Homestead Small Company Stock has a portfolio turnover rate of 37%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 65% for the Small Blend category.
Recently, in the month of June 2026, Homestead Small Company Stock returned 7.3%, which earned it a grade of A, as the Small Blend 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.
Homestead Small Company Stock has a trailing yield of 0.00%, which is below the 0.41% category average. The fund normally distributes its income semi-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.
Homestead Small Company Stock Grades
Year to date, the fund has returned 14.9%, 6.8 percentage points worse than the category, which translates into a grade of F. The fund has returned 23.2% over the past year (grade of F), 10.1% over the past three years (grade of F) and 4.3% per year over the past five years (grade of F) and 7.6% per year over the past 10 years (grade of F).
For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about Homestead Small Company Stock, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
HSCSX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| HSCSX Return (NAV) | 7.3% | 14.5% | 23.2% | 10.1% | 4.3% | 7.6% |
| HSCSX Grade | A | F | F | F | F | F |
| +/- Category | 1.4% | -5.2% | -10.7% | -6.3% | -3.6% | -3.5% |
| Small Blend Avg | 5.9% | 19.8% | 33.9% | 16.4% | 7.9% | 11.2% |
| HSCSX Tax Cost Ratio | na | na | 2.9% | 1.8% | 2.1% | 2.5% |
HSCSX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| HSCSX Return (NAV) | 14.9% | 0.6% | 8.5% | 17.1% | -16.9% | 20.7% | 22.1% | 22.2% | -26.2% | 12.0% | 18.8% |
| HSCSX Grade | F | F | D | C | C | D | A | F | F | D | D |
| +/- Category | -6.8% | -7.3% | -3.0% | 0.6% | -0.4% | -2.5% | 7.7% | -3.3% | -14.3% | -2.1% | -1.4% |
| Small Blend Avg | 21.7% | 7.9% | 11.6% | 16.5% | -16.5% | 23.2% | 14.4% | 25.5% | -11.8% | 14.1% | 20.2% |
| Risk Measures | |
| Standard Deviation: | 18.5% |
| Total Risk Index: | 1.52 - High |
| Category Risk Index: | 1.00 - Average |
| Category Risk Grade: | C (47% Rank) |
| Beta: | 1.00 |
| R-Squared: | 50% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 0.0% |
| Dividend Distribution: | Semi-Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $213 Mil |
| Fund Total Assets: | $ 214 Mil |
| Share Class Type: | Inv |
| Portfolio Turnover: | 37% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 7.4 years | |||
| Average Tenure: 5.4 years | |||
| Managers (Year): Polk James (2019), Iong Mark (2023) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 61 |
| % in Top 10 Holdings: | 31.1% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 5.8% |
Portfolio Allocation |
|
| Domestic Stock: | 92.9% |
| Foreign Stock: | 5.8% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.4% |
Purchase Information
| Fund Family: | Homestead |
| Phone Number: | 800-258-3030 |
| Website: | www.homesteadfunds.com |
| Status: | Open |
| Inception Date: | March 4, 1998 |
| Min. Initial Purchase: | $ 500 |
| Min. Initial IRA Purchase: | $ 200 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 1.09% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.05% |
| Share Class: | Homestead Small Company Stock |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
