RVT: Expensive Small-Cap Income Fund (Rating Downgrade)

Cain Lee8.12K FollowersFollow5ShareSavePlay(12min)CommentsSummaryRoyce Small-Cap Trust has delivered a 34.7% total return over twelve months, benefiting from rotation out of large-cap tech.RVT now trades at a 6.93% discount to NAV, above its five-year average, prompting a downgrade to hold from buy.The fund maintains a 6.6% dividend yield, supported by strong net realized gains, but relies on capital gains for distributions.RVT's active management and sector diversity drive long-term outperformance, but tax efficiency and payout variability remain considerations. mdmilliman/iStock via Getty Images Overview As the market continues to sell off large-cap technology companies, the rotation into other areas of the market continues. This has been beneficial for small caps and the Royce Small-Cap Trust (RVT) hasThis article was written byCain Lee8.12K FollowersFollowFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I created a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.