Investment Objective and Strategy

The Fund’s investment objective is long-term growth of capital.

To achieve the Fund’s investment objective the Advisor normally invests at least 80% of the market value of the Fund’s total assets in U.S. common stocks of small capitalization (including micro capitalization) companies, as measured at the time of purchase. A portion of the Fund’s assets may be invested in mid-capitalization companies. The Adviser uses Lipper Inc.‘s definition which considers a company to have a small market capitalization if its market capitalization is below the 85th percentile of the aggregate capitalization of all the companies in the Russell 3000 Index. Both the market capitalizations of the companies in the index and the composition of the index change with market conditions.

Average Annual Returns as of 10/31/16

YTD 1 Yr 3 Yr 5 Yr 10 Yr
transparent Investor Class - VLEOX 3.90% 1.59% 5.39% 12.81% 7.53%
transparent Institutional Class - VLEIX 1 4.14% 1.86% 5.48% 12.87% 7.56%
transparent Russell 2000 Index 6.16% 4.11% 4.12% 11.51% 5.96%
transparent Morningstar Small Growth Funds 1.98% 0.35% 2.60% 10.24% 6.51%
Morningstar Small Growth Funds Ranking - 301/733 103/655 50/591 98/435
Percentile as of 10/31/16 - 41st 16th 9th 23rd
VLEOX Gross / Net Expense Ratio: 1.25%, VLEIX Gross / Net Expense Ratio*: 3.47% / 1.00%.
Morningstar rates funds based on enhanced Morningstar risk-adjusted returns.
1 Indicates Morningstar Extended Performance. Extended performance is an estimate based on the performance of the fund's oldest share class, adjusted for fees. The Inception Date of VLEIX is November 1, 2015.
Morningstar™ Ratings and Rankings based on Investor class shares.
VLEOX VLEIX1 Russell 2000 Index MSGF
YTD 3.90% 4.14% 6.16% 1.98%
1 Yr 1.59% 1.86% 4.11% 0.35%
3 Yr 5.39% 5.48% 4.12% 2.60%
5 Yr 12.81% 12.87% 11.51% 10.24%
10 Yr 7.53% 7.56% 5.96% 6.51%
VLEOX Gross / Net Expense Ratio: 1.25%, VLEIX Gross / Net Expense Ratio*: 3.47% / 1.00%.
Morningstar rates funds based on enhanced Morningstar risk-adjusted returns.
1 Indicates Morningstar Extended Performance. Extended performance is an estimate based on the performance of the fund's oldest share class, adjusted for fees. The Inception Date of VLEIX is November 1, 2015.
Morningstar™ Ratings and Rankings based on Investor class shares.

Morningstar as of 10/31/16

Category Small Growth Funds
3 Year of 655 Funds
5 Year of 591 Funds
10 Year of 435 Funds
Overall of 655 Funds

*EULAV Asset Management (the "Adviser") and EULAV Securities LLC, the Fund's principal underwriter (the "Distributor"), have agreed to waive certain class-specific fees and/or pay certain class-specific expenses incurred by the Institutional Class so that the Institutional Class bears its class-specific fees and expenses at the same percentage of its average daily net assets as the Investor Class's class-specific fees and expenses (excluding 12b-1 fees and any extraordinary expenses incurred in different amounts by the classes) during the period March 17, 2016 through July 31, 2017 (the "Expense Limitation"). The Adviser and the Distributor may subsequently recover from assets attributable to the Institutional Class the reimbursed expenses and/or waived fees (within 3 years after the fiscal year end in which the waiver/reimbursement occurred) to the extent that the Institutional Class's expense ratio is less than the Expense Limitation. The Expense Limitation can be terminated or modified before July 31, 2017 only with the agreement of the Fund's board. The Fund's performance would be lower in the absence of such waivers.

Morningstar™ and Lipper Ratings and Categories based on Investor class shares.

There are risks associated with investing in small and mid cap stocks, which tend to be more volatile and less liquid than stocks of large companies, including the risk of price fluctuations.

The performance data quoted herein represents past performance and does not guarantee future results. Market volatility can dramatically impact the fund's short term performance. Current performance may be lower or higher than figures shown. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than their original cost. Past performance data through the most recent month end is available at vlfunds.com or by calling 800.243.2729.

You should carefully consider investment objectives, risks, charges and expenses of Value Line Funds before investing. This and other information can be found in the fund's prospectus and summary prospectus, which can be obtained free of charge from your investment representative, by calling 800.243.2729, or by clicking on the applicable fund at www.vlfunds.com. Please read it carefully before you invest or send money. The inception dates of Value Line Mutual Funds range from 1950 to 2016. Value Line Funds are distributed by EULAV Securities LLC. Past performance is no guarantee of future results.

Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Current and future portfolio holdings are subject to risk.

The average annual returns shown above are historical and reflect changes in share price, reinvested dividends and are net of expenses. Investment results and the principal value of an investment will vary.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three- year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. VLIFX (3 Year / 5 stars / 655 funds; 5 Year / 4 stars / 572 funds; 10 Year / 3 stars / 427 funds; ) VALLX (3 Year / 5 stars / 1439 funds; 5 Year / 4 stars / 1252 funds; 10 Year / 3 stars / 896 funds; ) VLEOX (3 Year / 4 stars / 655 funds; 5 Year / 5 stars / 591 funds; 10 Year / 5 stars / 435 funds; ) VALSX (3 Year / 4 stars / 655 funds; 5 Year / 4 stars / 572 funds; 10 Year / 4 stars / 427 funds; ) VLAAX (3 Year / 4 stars / 831 funds; 5 Year / 4 stars / 717 funds; 10 Year / 4 stars / 497 funds; ) VALIX (3 Year / 4 stars / 379 funds; 5 Year / 3 stars / 313 funds; 10 Year / 5 stars / 235 funds; ) VLDSX (3 Year / 2 stars / 260 funds; 5 Year / 1 stars / 161 funds; 10 Year / N/A stars / N/A funds; ) VAGIX (3 Year / 2 stars / 965 funds; 5 Year / 3 stars / 850 funds; 10 Year / 3 stars / 609 funds; ) VLHYX (3 Year / 1 stars / 175 funds; 5 Year / 1 stars / 163 funds; 10 Year / 1 stars / 134 funds; )