Fri, Aug. 21, 3:51 PM
- With the Dow, S&P 500, and Nasdaq all down about 3%, the small-cap Russell 2000 (NYSEARCA:IWM) is lower by just 0.75%.
- The outperformance is noteworthy because it's been small caps leading on the way down - falling nearly 11% since a late-June peak, or roughly 500 basis points worse than the S&P 500.
- ETFs: VB, VBR, EES, VBK, SCHA, RVT, JKL, RCG, JKJ, TILT, FYX, FYT, JKK, IESM, VLU, ZSML, FYC
Wed, Mar. 11, 1:50 PM
- "These three ETFs give conservative and income-oriented investors the ability to utilize Value Line's popular ranking systems to potentially improve their risk-adjusted returns," said Brian Jacobs, President of Direxion Investments in a press release.
- The Direxion Value Line Mid- and Large-Cap High Dividend ETF (NYSEARCA:VLML) and the Direxion Value Line Small- and Mid-Cap High Dividend ETF (NYSEARCA:VLSM) both use a modified equal-weighting approach and target companies paying “above average” dividends in their selected market caps.
- The Direxion Value Line Conservative Equity ETF (NYSEARCA:VLLV) will track a basket of funds with a strong Safety Ranking, created by Value Line to measure how a stock is likely to weather a market downturn.
- Other ETFs tracking value by market capitalization: VBR, EES, VTV, VOE, IWS, SCHV, JKL, PWV, UVU, EZY, TILT, JKI, FYT, IWX, JKF, IELG, IESM, GVT, FNK, VLU, SJL, SYV
Wed, Jan. 28, 11:03 AM
- The ETFS Zacks Earnings Large-Cap U.S. Index Fund (NYSEARCA:ZLRG) and ETFS Zacks Earnings Small-Cap U.S. Index Fund (NYSEARCA:ZSML) were launched on January 20th, marking ETF Securities first stray from its commodities focus.
- Both new funds were developed to capture Zacks’ proprietary investment ranking strategy based on earnings estimate revisions and earnings quality.
- “We are delighted to be the first ETF provider to bring to market what Zacks is known for: expertise in earnings analysis," said Mike McGlone, Director of Research at ETF Securities, in a statement.
- Other U.S. earnings focused ETFs: EZM, EPS, EES, EXT
Oct. 1, 2014, 3:52 PM
- Today's decline in the Russell 2000 (IWM -1.4%) puts it more than 10% below the level hit in March (and in July). The index fell 6% in September alone.
- For the year, the Russell is lower by 6.6% after gaining nearly 40% in 2013.
- As rough as it's been, it's the divergence with large caps which looks like the bigger story - while the small caps have fallen 10% during their correction, the S&P 500 is flat, and only in the last two weeks beginning to move in lockstep with the Russell.
- For the year, the S&P 500 is up 5.4%, about 1,200 basis points ahead of the Russell, and on a year-over-year basis, the S&P's 15% gain is 1,500 basis points faster than the Russell.
- ETFs: IWM, TZA, TNA, UWM, VB, VBR, EES, VBK, URTY, SCHA, TWM, IWN, IWO, RWM, SRTY, VTWO, JKL, JKJ, TILT, UKK, VTWG, FYX, FYT, EWRS, TWOK, SKK, VTWV, JKK, UVT, SJH, IESM, VLU, FYC
Aug. 11, 2014, 3:15 PM
- Many highly regarded small-cap funds have put up "no vacancy" signs to new investors, writes Sarah Max in Barron's, their managers cautious among perky valuations or unwieldy AUM, or both. Notable closures include the $1.6B Artisan Small Cap Investor Fund, the $6.2B Fidelity Small Cap Discovery Fund, and the $993M Hotchkis & Wiley Small Cap Value Fund. T. Rowe Price has also closed two of its top performers, the $10.4B T. Rowe Price Small-Cap Fund and the $16B T. Rowe Price New Horizons Fund.
- Caution may be in order given the big run for small-caps, but fund manager Bill Grierson says the current Russell 2000 (IWM +1.1%) P/E ratio is just slightly higher than its 10-year average of about 17x. Further, Q2 sales growth is at about 9% so far.
- Another manager allows it's not an easy time to find cheap stocks, but beyond the sexy segments there's a whole universe of small companies, and he's been picking up some names.
- ETFs: IJS, VBR, EES, IWN, JKL, RZV, SLYV, TILT, VIOV, FNDA, FYT, VTWV, PXSV, UVT, SJH, IESM, VLU
Jul. 25, 2014, 2:31 PM
- Hammering away at the misconception that it pays to seek active managers in supposedly "less efficient" sectors like small caps, S&P Dow Jones' Philip Murphy finds - even choosing among the top mutual fund share classes - an alarmingly small number of managers failed to beat the benchmarks.
- Starting at the March 2009 bottom and going out five years, only 9 of 139 share classes beat the S&P SmallCap 600 benchmark (that's 5.9% of the starting set).
- Where alpha might be able to be delivered though, is in choosing which benchmark to track. A fund tracking the S&P SmallCap 600 (IJR, VIOO) would have outperformed one tracking the Russell 2000 (NYSEARCA:IWM) by 23% over the 5-year period.
- ETFs: IWM, TZA, IJS, TNA, IWC, UWM, VB, IJR, SLY, VBR, EES, RWJ, VBK, URTY, SCHA, TWM, IWN, IWO, IJT, RWM, SRTY, DWAS, SAA, VTWO, JKL, RZV, SLYG, SLYV, VIOO, SDD, PZI, RZG, FDM, SBB, RSCO, WMCR, VIOG, JKJ, VTWG, UKK, TILT, VIOV, FNDA, XSLV, FYX, FYT, EWRS, JKK, TWOK, SKK, VTWV, PXSV, SMLV, UVT, SJH, IESM, PXSC, VLU, FYC, PXSG
Jul. 7, 2014, 1:45 PM
- "Knowingly overpaying never has made sense to me, which I think people are doing," says small-cap fund manager Eric Cinnamond, notable for being up 14.5% at the midway point in 2009 vs. peers' average loss of 27%, but missing out on the bull market of the last three years thanks to his large cash holdings.
- The small cap stocks on his radar are as "expensive as I have ever seen them," he tells the WSJ. "We're just unwilling to overpay with other people's mooney in high-quality, small-cap stocks."
- ETFs: IWM, IJS, TZA, TNA, IWC, UWM, VB, IJR, SLY, VBR, EES, RWJ, URTY, SCHA, TWM, IWN, RWM, SRTY, SAA, DWAS, VTWO, JKL, RZV, SLYV, VIOO, SDD, PZI, FDM, SBB, RSCO, WMCR, JKJ, TILT, VIOV, XSLV, FYX, FNDA, FYT, EWRS, TWOK, VTWV, SMLV, PXSV, UVT, SJH, IESM, PXSC, VLU
Jun. 6, 2014, 3:03 PM
- This just in: Continuing to bounce from a tough 10-week stretch which saw the index lose about 10% of its value from the start of March, the Russell 2000 (IWM +0.9%) has turned positive for the year.
- The small cap index, however, continues to trail the S&P 500 which is ahead 5.7% YTD, as well as the Nasdaq, which is up 3.4%.
- ETFs: IWM, TZA, TNA, UWM, VB, EES, VBR, VBK, URTY, SCHA, TWM, IWN, IWO, RWM, SRTY, VTWO, JKL, JKJ, UKK, VTWG, TILT, FYX, FYT, SKK, JKK, EWRS, TWOK, VTWV, UVT, SJH, IESM, VLU, FYC
May 20, 2014, 4:37 PM
- Chicago-based Good Harbor Financial is among the largest ETF portfolio managers and the company in May began to rebalance its $11B U.S. Tactical Core Strategy twice a month instead of once - today marks the first mid-month trade for the portfolio, reports the WSJ.
- Good Harbor's main strategy today, says the Journal, looked to be selling small caps as well as two ETFs tied to the S&P 500 (SPY -0.7%), and volume spiked in the iShares Russell 2000 ETF (IWM -1.6%), the ProShares Ultra Russell 2000 (UWM -3%), the iShares Core S&P 500 ETF (IVV -0.7%) and the ProShares Ultra S&P 500 (SSO -1.5%).
- Good Harbors was the largest single holder of three of those funds as of the end of March, and the 2nd largest holder of the fourth.
- As it sold the equity ETFs, Good Harbors appeared to be buying two mid-to-long-dated Treasury bond ETFs, the iShares 7-10 Year Treasury Bond Fund (IEF +0.3%) and the ProShares Ultra 7-10 Year Treasury ETF (UST +0.7%), with both having volumes many multiples higher than normal.
- Good Harbors was also a seller of small caps and a buyer of Treasurys in early May, says the Journal, which earlier this year reported traders growing accustomed to waiting for the firm's monthly rebalance.
- ETFs: IWM, IJS, TZA, TNA, UWM, VB, IJR, SLY, EES, VBR, RWJ, VBK, URTY, SCHA, TWM, IWO, IWN, IJT, RWM, SRTY, DWAS, SAA, VTWO, JKL, RZV, SLYG, SLYV, VIOO, SDD, SBB, RZG, JKJ, RSCO, VTWG, UKK, VIOG, TILT, FYX, FNDA, VIOV, XSLV, FYT, SKK, JKK, EWRS, TWOK, PXSV, VTWV, SMLV, UVT, SJH, PXSC, IESM, FYC, VLU, PXSG
May 8, 2014, 3:31 PM
- Making the rounds across trading desks is this chart showing the Russell 2000 (IWM -1%) this week closing below its 200-day moving average for the first time since November 2012.
- BAML's Macneil Curry adds a couple of additional technical ideas, noting Tuesdays this year have typically been positive, but not this week, and the Russell 2000 looks to be completing a 4-month head-and-shoulders top.
- The small cap index is now off 5.3% YTD vs. a 1.6% gain for the S&P 500. It's also now fallen below the S&P on a Y/Y basis, up 13.3% vs. the big cap's 14.9% gain.
- ETFs: IWM, IJS, TZA, TNA, UWM, VB, IJR, SLY, EES, VBR, RWJ, VBK, URTY, SCHA, TWM, IWO, IWN, IJT, RWM, SRTY, DWAS, SAA, VTWO, JKL, RZV, SLYG, SLYV, VIOO, SDD, RZG, SBB, RSCO, JKJ, VTWG, FYX, UKK, TILT, VIOG, FNDA, XSLV, VIOV, FYT, SKK, EWRS, JKK, TWOK, PXSV, VTWV, UVT, SMLV, SJH, IESM, VLU, PXSC, FYC, PXSG
Apr. 28, 2014, 8:35 AM
- "It's hard to find a bargain out there," says Fidelity fund manager John Roth, as - even with two sharp small-cap selloffs this year - the Russell 2000 (IWM) is down only 3.5%, and still trades at a lofty 19.1x earnings. At the start of 2013, the index's P/E was 15.1, and the average since 1994 is 16.9. After trimming positions in Q1, Roth's New Millenium Fund holds just 12% of assets in small caps vs. an average of 19% from 2008-2013.
- Manager of the $240M Wasatch Small Cap Value Fund, Jim Larkings is keeping cash towards the higher end of his typical 2-8% of AUM. He's finding some value in those small caps reeling due to the broader selloff in high-growth tech, but "The real darlings aren't even close to value territory."
- Individual investors, however, continue to be believers, pouring $3.1B into small cap mutual funds to add to $16.4B in inflows last year.
- ETFs: IWM, IJS, TZA, TNA, UWM, VB, IJR, SLY, EES, VBR, RWJ, VBK, URTY, SCHA, TWM, IWO, IWN, IJT, RWM, SRTY, DWAS, SAA, JKL, VTWO, RZV, SLYG, SLYV, VIOO, SDD, RZG, SBB, RSCO, JKJ, UKK, VTWG, FYX, TILT, VIOG, FNDA, XSLV, VIOV, FYT, SKK, JKK, EWRS, TWOK, PXSV, VTWV, UVT, SMLV, SJH, IESM, VLU, PXSC, FYC, PXSG
Apr. 21, 2014, 11:17 AM
- It may be too late to pick up the "free desert" of higher returns from small caps and value stocks, suggests Larry Swedroe, as their historical outperformance is now common knowledge. In the past few years, markets have quickly bid up the share prices of these names alongside numerous publications and studies proving their superiority as investments. "One of the characteristics of an efficient market is that once an anomaly is discovered, the very act of exploiting it will cause it to rapidly shrink and eventually disappear."
- Related ETFs: IVE, IWM, IJS, TZA, TNA, UWM, VB, IJR, SLY, EES, VBR, RWJ, URTY, IWD, VTV, SCHA, TWM, IWN, SDOG, VOE, RWM, SRTY, RPV, IWS, IJJ, DEF, SPYV, SCHV, SAA, DWAS, FLAG, JKL, VTWO, PWV, RZV, VOOV, MGV, DOD, SLYV, SDD, VIOO, RSCO, JKJ, SBB, UVU, RFV, EZY, TILT, FYX, VIOV, FNDA, FTA, XSLV, FYT, IWX, MDYV, JKF, IVOV, JKI, PXSV, EWRS, TWOK, VTWV, UVT, VONV, FNDX, PXLV, UVG, SJH, SMLV, SJF, IESM, VLU, GVT, PXMV, PXSC, SJL, FNK, IELG, SYV
Apr. 7, 2014, 7:28 AM
- Stocks look set to pick up where they left off on Friday, with tech and small caps again leading the slide. Nasdaq 100 (QQQ) futures are off 0.9% and Russell 2000 (IWM) futures are down 0.8%. S&P 500 (SPY) -0.5%.
- Europe's off about 1% and the Nikkei lost 1.7% overnight in response to the big selloff in the States.
- The 10-year Treasury yield is flat at 2.72% and gold is off 0.4% to $1,299 per ounce.
- ETFs: SPY, QQQ, SH, IWM, IJS, TZA, TNA, SSO, SDS, PSQ, IVV, VOO, UWM, SPXU, UPRO, TQQQ, VB, SPXL, QID, IJR, RSP, SLY, SQQQ, EES, QLD, VBR, RWJ, RWL, VBK, EPS, URTY, SCHA, TWM, IWO, IWN, IJT, RWM, SRTY, SAA, DWAS, BXUB, JKL, QQEW, RZV, VTWO, SLYG, QQQE, TRND, SLYV, VIOO, SFLA, SDD, RZG, QQXT, SBB, JKJ, RSCO, BXUC, UKK, VTWG, SPLX, TILT, BXDB, VIOG, FYX, VIOV, FNDA, XSLV, FYT, SKK, JKK, PXSV, VTWV, EWRS, UVT, TWOK, TNDQ, SJH, SMLV, IESM, FYC, VLU, PXSC, PXSG
Apr. 4, 2014, 11:32 AM
- There's little movement in the S&P 500 and Dow, but what the chart-watchers like to call a technical divergence is occurring in the Nasdaq (QQQ -1.4%) and Small Caps (IWM -0.8%) for the 2nd consecutive day.
- Leading the Nasdaq lower are roughly 2% declines in Google and Microsoft. The deflating Biotech sector (IBB -2%) is again the main culprit in small caps. Up 20% YTD in late February, the IBB is back to about flat for 2014.
- Related ETFs: QQQ, IWM, IJS, TZA, TNA, PSQ, UWM, TQQQ, VB, QID, IJR, SLY, SQQQ, EES, QLD, VBR, RWJ, VBK, URTY, SCHA, TWM, IWO, IWN, IJT, RWM, SRTY, SAA, DWAS, JKL, QQEW, VTWO, RZV, SLYG, QQQE, SLYV, VIOO, SDD, QQXT, RZG, JKJ, SBB, RSCO, UKK, VIOG, VTWG, TILT, FYX, FNDA, VIOV, XSLV, FYT, SKK, JKK, PXSV, EWRS, VTWV, TNDQ, TWOK, UVT, SMLV, SJH, IESM, FYC, VLU, PXSC, PXSG, IBB, XBI, BIB, BBH, FBT, PBE, BIS
Mar. 27, 2014, 7:08 AM
- Major stock index futures are all ahead about 0.25% as equities look to bounce back from yesterday's slide. The Russell 2000 (IWM) took the biggest hit on Wednesday, falling 1.9%, and it's ahead 0.4% in the premarket.
- Europe's essentially flat, and the Nikkei gained 1% overnight while Shanghai dipped 0.8%.
- The 10-year Treasury yield bounces a bit from yesterday's big decline, up two basis points to 2.71%, and gold is down 0.6% and below $1,300 per ounce.
- ETFs: SPY, QQQ, SH, DIA, IWM, IJS, TZA, TNA, SSO, SDS, PSQ, IVV, VOO, UWM, SPXU, UPRO, TQQQ, VB, SPXL, QID, IJR, RSP, DOG, SLY, SQQQ, EES, QLD, DXD, RWJ, VBR, RWL, VBK, EPS, URTY, SCHA, UDOW, TWM, IWO, IWN, SDOW, DDM, IJT, RWM, SRTY, SAA, DWAS, BXUB, JKL, VTWO, QQEW, RZV, SLYG, QQQE, TRND, SLYV, VIOO, SFLA, SDD, RZG, JKJ, BXUC, RSCO, QQXT, SBB, UKK, VTWG, TILT, VIOG, BXDB, FYX, VIOV, FNDA, XSLV, FYT, SKK, JKK, PXSV, VTWV, EWRS, UVT, TNDQ, SPLX, TWOK, SMLV, SJH, IESM, FYC, VLU, PXSC, PXSG
Mar. 24, 2014, 7:37 AM
- The Russell 2000 (IWM) is trading for 49x earnings compared with a multiple of 39x at the height of the Internet bubble. The S&P 500 P/E ratio of 17.2x is within spitting distance of its 75-year average.
- The small cap gauge has returned an average of 30% per year since the March 2009 bottom vs. 25% for the S&P 500, but profits lately are not keeping up. In the last quarter, Russell 2000 profits climbed 6.8% vs. 8.6% for the S&P 500, and while S&P companies exceeded analyst estimates by 4.6%, Russell 2000 companies missed by 13%, according to Bloomberg.
- "Monetary policy action cannot be taken off the table as a response to the build-up of broad and sustained systemic risk," said Fed Governor Daniel Tarullo recently, sighting bubbly small caps as one thing being eyed at the central bank.
- ETFs: IWM, IJS, TZA, TNA, UWM, VB, IJR, SLY, EES, RWJ, VBR, VBK, URTY, SCHA, TWM, IWO, IWN, IJT, RWM, SRTY, SAA, DWAS, JKL, VTWO, SLYG, RZV, SLYV, VIOO, SDD, JKJ, RZG, RSCO, SBB, UKK, VTWG, VIOG, TILT, FYX, FNDA, VIOV, XSLV, FYT, SKK, JKK, PXSV, VTWV, EWRS, UVT, TWOK, IESM, SMLV, SJH, FYC, VLU, PXSC, PXSG
EES vs. ETF Alternatives
The WisdomTree SmallCap Earnings Fund seeks investment results that correspond to the price and yield performance, before fees and expenses, of the WisdomTree SmallCap Earnings Index. The index is comprised of the companies in the bottom 25% of the market capitalization of the WisdomTree Earnings Index after the 500 largest companies have been removed. Companies must be incorporated and listed in the U.S. and have generated positive cumulative earnings over their most recent four fiscal quarters prior to the index measurement date. The index is earnings-weighted in December to reflect the proportionate share of the aggregate earnings each component company has generated. Companies with greater earnings generally have larger weights in the index. WisdomTree Investments uses "Core Earnings", computed by Standard & Poors, as the weighting metric. Core Earnings is a standardized calculation of earnings developed by Standard & Poors designed to include expenses, incomes and activities that reflect the actual profitability of an enterprises ongoing operations.
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