Fund Evaluator:
Nicholas II I (NCTWX)
Follow This Fund
Best Performing in Mid-Cap Growth Over the Last Year
| 44.9% | PRIMECAP Odyssey Aggressive Growth (POAGX) |
| 27.1% | Eventide Gilead N (ETGLX) |
| 23.3% | Sit Small Cap Growth (SSMGX) |
| 19.8% | Goldman Sachs Small/Mid Cap Growth Inv (GTMTX) |
| 19.2% | ProFunds Mid Cap Growth Inv (MGPIX) |
Fund Details
Nicholas II I Overview
Nicholas II I (NCTWX) is an actively managed U.S. Equity Mid-Cap Growth fund. Nicholas launched the fund in 1983.
The investment seeks to increase the value of the investment over the long-term. The fund primarily invests in common stocks of domestic corporations with medium-sized market capitalizations believed to have growth potential. The adviser believes a company's annual sales volume and the market capitalization are the factors most illustrative of a company's size. The adviser generally considers companies with market capitalizations up to $3 billion as "small," between $3 billion and $25 billion as "medium," and greater than $25 billion as "large."
About Nicholas II I (NCTWX)
There are 3 members of the management team with an average tenure of 14.37 years: Brian Janowski (2018), Jeffrey Strong (2025), David Nicholas (1993). 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 Mid Cap Growth TR USD index with a weighting of 100%. Nicholas II I has 68 securities in its portfolio. The top 10 holdings constitute 24.2% 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.
Nicholas II I is part of the Equity global asset class and is within the U.S. Equity fund group. Nicholas II I has 2.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 95.8%. There is 2.2% 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). Nicholas II I has 2.0% of the portfolio in cash.
Assets Under Management
The fund has $883 million in total assets, which is above the $658 million average for the Mid-Cap Growth 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.
NCTWX 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 Nicholas II I expense ratio is average compared to funds in the Mid-Cap Growth category. Nicholas II I has an expense ratio of 0.59%, which is 46% 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. Nicholas II I has a portfolio turnover rate of 9%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 77% for the Mid-Cap Growth category.
Recently, in the month of July 2026, Nicholas II I returned 3.7%, which earned it a grade of A, as the Mid-Cap Growth category had an average return of -5.5%. 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.
Nicholas II I has a trailing yield of 0.07%, which is above the 0.03% 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.
Nicholas II I Grades
Year to date, the fund has returned 5.8%, 0.2 percentage points better than the category, which translates into a grade of C. The fund has returned 2.0% over the past year (grade of C), 5.5% over the past three years (grade of F) and 2.7% per year over the past five years (grade of C) and 9.7% per year over the past 10 years (grade of D).
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 Nicholas II I, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
NCTWX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| NCTWX Return (NAV) | 3.7% | 10.4% | 2.0% | 5.5% | 2.7% | 9.7% |
| NCTWX Grade | A | A | C | F | C | D |
| +/- Category | 9.2% | 8.3% | -3.5% | -5.0% | 0.2% | -1.2% |
| Mid-Cap Growth Avg | -5.5% | 2.1% | 5.5% | 10.5% | 2.5% | 10.9% |
| NCTWX Tax Cost Ratio | na | na | 2.6% | 1.6% | 1.7% | 1.9% |
NCTWX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| NCTWX Return (NAV) | 5.8% | -1.2% | 6.8% | 19.9% | -18.0% | 21.6% | 15.7% | 34.9% | -4.7% | 25.6% | 4.9% |
| NCTWX Grade | C | F | F | D | A | A | F | C | C | C | C |
| +/- Category | 0.2% | -7.3% | -10.5% | -0.9% | 10.1% | 9.3% | -24.7% | 0.9% | -0.1% | 0.4% | -0.4% |
| Mid-Cap Growth Avg | 5.7% | 6.1% | 17.3% | 20.8% | -28.1% | 12.3% | 40.4% | 33.9% | -4.6% | 25.3% | 5.3% |
| Risk Measures | |
| Standard Deviation: | 14.7% |
| Total Risk Index: | 1.20 - Above Average |
| Category Risk Index: | 0.78 - Low |
| Category Risk Grade: | A (4% Rank) |
| Beta: | 0.91 |
| R-Squared: | 65% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Mid-Cap Growth |
| Bond Investment Style: | na |
| Yield: | 0.1% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $941 Mil |
| Fund Total Assets: | $ 883 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 10% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 33.4 years | |||
| Average Tenure: 14.4 years | |||
| Managers (Year): Nicholas David (1993), Janowski Brian (2018), Strong Jeffrey (2025) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 68 |
| % in Top 10 Holdings: | 24.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 2.2% |
Portfolio Allocation |
|
| Domestic Stock: | 95.8% |
| Foreign Stock: | 2.2% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 2.0% |
Purchase Information
| Fund Family: | Nicholas |
| Phone Number: | 800-544-6547 |
| Website: | www.nicholasfunds.com |
| Status: | Open |
| Inception Date: | October 17, 1983 |
| Min. Initial Purchase: | $100,000 |
| Min. Initial IRA Purchase: | $ 0 |
| 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 (%): | 0.59% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 1.09% |
| Share Class: | Nicholas II I |
| Min. Subsequent Purchase: | $ 100 |
| Min. Subsequent IRA Purchase: | $ 0 |
