Royce Small-Cap Trust (NYSE: RVT) as of Dec 31, 2025
MWN-AI** Summary
As of December 31, 2025, the Royce Small-Cap Trust (NYSE: RVT) remains a cornerstone in the small-cap investment landscape, being the oldest and largest closed-end fund dedicated to this sector. The fund, managed by an investment team with over 50 years of expertise in small- and micro-cap investing, had a net asset value (NAV) of $17.69 and a market price of $16.10 on this date.
In terms of performance, RVT reported a one-year total return of 14.03% based on NAV and 11.60% on the market price. Its three-year annualized returns stood at 16.03% (NAV) and 16.14% (market), while the five-year annualized returns were 8.10% for NAV and 9.04% for the market. The fund's long-term capital growth objective is supported by a diversified portfolio that primarily invests at least 65% of its assets in equity securities of small- and micro-cap companies.
The portfolio composition shows a weighted average market capitalization of approximately $3.34 billion, a P/E ratio of 21.9x, and a P/B ratio of 22.2x. Noteworthy sectors include Industrials (25.6% of net assets), Financials (20.8%), and Information Technology (14.1%). The fund's top ten positions represent a mix of companies, with IES Holdings, Assured Guaranty, and APi Group among the highlights.
With net assets totaling $2.16 billion, RVT continues to attract investors looking for exposure to the growth potential of small-cap stocks, despite the inherent risks associated with this segment. Investors are encouraged to consider the fund’s investment objectives and risks thoroughly before making any investment decisions.
MWN-AI** Analysis
As of December 31, 2025, Royce Small-Cap Trust (NYSE: RVT) presents an intriguing prospect for investors seeking exposure to small-cap equities. With a market price of $16.10 and a net asset value (NAV) of $17.69, the fund trades at a notable discount, which can offer a compelling entry point for savvy investors.
The trust's recent performance metrics reveal a one-year total return of 14.03% (NAV) and 11.60% (market), reflecting strong underlying growth, albeit at varying levels of attractiveness. Over three years, the average annual return remains robust at 16.03% (NAV), suggesting a consistent ability to navigate volatile market conditions effectively. This is particularly noteworthy as small-cap companies often present higher risks, yet the potential for substantial returns can be appealing, especially in a recovering economy.
A significant portion of RVT's holdings is concentrated in key sectors such as Industrials (25.6%) and Financials (20.8%), which are positioned to benefit from ongoing economic growth and infrastructure spending initiatives. The fund maintains a relatively high weighted average P/E ratio of 21.9x, signaling that the market anticipates further growth in earnings from these small-cap firms.
However, investors should remain cautious. The fund's diversified portfolio does not guarantee profits and is subject to the inherent risks associated with small-cap investments, including greater volatility and exposure to foreign market risks. Furthermore, current economic indicators suggest a potentially slower growth phase, which may impact the performance of small-cap equities.
In conclusion, RVT could be a strong addition to a diversified portfolio, particularly for those with a long-term investment horizon. The fund's historical performance, coupled with its current discount to NAV, presents a favorable risk-reward scenario—assuming investors are prepared to weather the inherent volatility associated with small-cap investments.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
NEW YORK, Jan. 26, 2026 /PRNewswire/ --
- Oldest and largest small-cap closed-end fund
- Average weekly trading volume of approximately 1,494,105 shares
- Fund's adviser has more than 50 years of small- and micro-cap investment experience
CLOSING PRICES AS OF 12/31/25 | |
NAV | 17.69 |
MKT | 16.10 |
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/25 | NAV (%) | MKT (%) |
One-Month* | 0.30 | 2.41 |
One-Year | 14.03 | 11.60 |
Three-Year | 16.03 | 16.14 |
Five-Year | 8.10 | 9.04 |
10-Year | 11.75 | 12.29 |
*Not Annualized
Important Performance and Expense Information
All performance information reflects past performance, is presented on a total return basis, net of the Fund's investment advisory fee, and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Current performance may be higher or lower than performance quoted. Returns as of the recent month-end may be obtained at www.royceinvest.com. The market price of the Fund's shares will fluctuate, so that shares may be worth more or less than their original cost when sold.
The Fund invests primarily in securities of small-cap and micro-cap companies, which may involve considerably more risk than investing in larger-cap companies. The Fund's broadly diversified portfolio does not ensure a profit or guarantee against loss. From time to time, the Fund may invest a significant portion of its net assets in foreign securities, which may involve political, economic, currency, and other risks not encountered in U.S. investments.
PORTFOLIO DIAGNOSTICS | |
Average Market Cap1 | $3334.9M |
Weighted Average P/E2 | 19.1x |
Weighted Average P/B2 | 2.2x |
Net Assets | $2.16B |
1Geometric Average: This weighted calculation uses each portfolio holding's market cap in a way designed to not skew the effect of very large or small holdings; instead, it aims to better identify the portfolio's center, which Royce believes offers a more accurate measure of average market cap than a simple mean or median.
2Harmonic Average: This weighted calculation evaluates a portfolio as if it were a single stock and measures it overall. It compares the total market value of the portfolio to the portfolio's share in the earnings of its underlying stocks.
The Price-Earnings, or P/E, ratio is calculated by dividing a company's share price by its trailing 12-month earnings-per-share (EPS). The Fund's P/E ratio calculation excludes companies with zero or negative earnings (14% of portfolio holdings as of 12/31/25). The Price-to-Book, or P/B, Ratio is calculated by dividing a company's share price by its book value per share.
The Price-to-Book, or P/B, Ratio is calculated by dividing a company's share price by its book value per share.
Portfolio Composition
TOP 10 POSITIONS | % OF NET ASSETS (SUBJECT TO CHANGE) |
IES Holdings | 2.2 |
Assured Guaranty | 1.4 |
APi Group | 1.2 |
Arcosa | 1.1 |
ESAB Corporation | 1.1 |
Sprott | 1.0 |
Brady Corporation Cl. A | 1.0 |
International General Insurance Holdings | 1.0 |
E-L Financial | 1.0 |
SEI Investments | 1.0 |
TOP FIVE SECTORS | % OF NET ASSETS (SUBJECT TO CHANGE) |
Industrials | 25.6 |
Financials | 20.8 |
Information Technology | 14.1 |
Health Care | 9.8 |
Consumer Discretionary | 9.5 |
Recent Developments
Royce Small-Cap Trust is a closed-end diversified management investment company whose shares of Common Stock (RVT) are listed and traded on the New York Stock Exchange. Its primary investment goal is long-term capital growth, which it seeks by investing at least 65% of its assets in equity securities primarily of small- and micro-cap companies.
Daily net asset values (NAVs) for Royce Small-Cap Trust are now available on our website and online through most ticker symbol lookup services and on broker terminals under the symbol XRVTX. For more information, please call The Royce Funds at (800) 221-4268 or visit our website at www.royceinvest.com.
An investor in Royce Small-Cap Trust should consider the Fund's investment goals, risks, fees, and expenses carefully before investing.
Important Disclosure Information
Closed-End Funds are registered investment companies whose shares of common stock may trade at a discount to their net asset value. Shares of each Fund's common stock are also subject to the market risks of investing in the underlying portfolio securities held by the Fund. Royce Fund Services, LLC. ("RFS") is a member of FINRA and has filed this material with FINRA on behalf of each Fund. RFS does not serve as a distributor or as an underwriter to the closed-end funds.
SOURCE Royce Small Cap Trust
FAQ**
What are the primary investment strategies employed by Royce Value Trust Inc. RVT for selecting small- and micro-cap companies as of December 32025, and how have they influenced the fund's performance?
Given the fund's heavily invested sectors, particularly Industrials and Financials, what exposure does Royce Value Trust Inc. RVT have to current economic trends and potential risks?
How does the weighted average P/E ratio of 21.9x for Royce Value Trust Inc. RVT as of December 31, 2025, compare to its historical averages, and what implications does this have for future growth?
Considering the fund's recent one-year returns of 14.03% for NAV and 11.60% for market price, how has investor sentiment toward Royce Value Trust Inc. RVT shifted, and what factors could influence future performance?
**MWN-AI FAQ is based on asking OpenAI questions about Royce Value Trust Inc. (NYSE: RVT).
NASDAQ: RVT
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