Thu, Sep. 24, 7:38 AM
Thu, Sep. 10, 12:39 PM
- The CBEO Russell 2000 Volatility Index has dipped to 26.33, while the CBOE Volatility Index (VIXX) has risen to 26.51.
- Pick your reason, but the fact that small caps tend to do more business at home vs. the more multinational large-caps makes for as good of an excuse as any.
- The upshot, however, is of more import: Those itching to buy protection (or play for a bull market), may want to look at what are now relatively cheap options on the IWM rather than on the S&P 500.
- Source: Barron's
- ETFs: IWM, TZA, TNA, UWM, VB, IJR, VBR, SLY, EES, RWJ, VBK, URTY, SCHA, TWM, RVT, RWM, SRTY, VTWO, SAA, JKL, VXX, UVXY, TVIX, XIV, SVXY, VIXY, ZIV, VXZ, VIXM, CVOL, VIIX, XVZ, XXV, XVIX, TVIZ, IVOP, VIIZ, VXUP, VXDN
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
Tue, Mar. 24, 2:08 PM
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
Dec. 19, 2014, 7:24 AM
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. 29, 2014, 12:13 PM
- The following ETFs lowered their fees from 0.10% to 0.09%: The Vanguard Small-Cap Growth ETF (VBK), Mid-Cap ETF (VO), Mid-Cap Value ETF (VOE), Mid-Cap Growth (VOT), Large-Cap ETF (VV), Value ETF (VTV) and Growth ETF (VUG).
- The Vanguard Total Bond Market ETF (BND) will see a 20% decline in expense ratio to 0.08%.
- The only fund to raise fees this round is the Vanguard Small-Cap Value ETF (VBR), which will rise 20%, from 0.10% to 0.12%, to cover expenses incurred indirectly through investments in business development companies; which the fund no longer covers.
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
VBR vs. ETF Alternatives
Vanguard Small-Cap Value ETF seeks to track the performance of a benchmark index that measures the investment return of small-capitalization value stocks. Investment approach: Seeks to track the performance of the CRSP US Small Cap Value Index. Small-cap value equity. Employs a passively managed, full-replication strategy. The fund remains fully invested. Low expenses minimize net tracking error.
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