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In my view, the Columbia Research Enhanced Core ETF (NYSEARCA:RECS), an exchange-traded fund that I rated a Hold in April 2022, should be upgraded to a Buy today. What has prompted this decision? The
RECS: The High Achiever Deserves An Upgrade
Summary
- RECS has an index-based strategy designed to benefit from the worthiest names in the Russell 1000 index.
- In April 2022, I assigned a Hold rating to it owing to the small AUM and unideal liquidity. These concerns have been dissolved.
- RECS' performance has been nothing short of impressive, as it has beaten both IVV and IWB.
- RECS' robust value, growth, and quality mix reinforces the bullish view.
Vasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap exploration & production companies, the oilfield services firms), while he also covers a plethora of other industries from mining and chemicals to luxury bellwethers.He firmly believes that apart from simple profit and sales analysis, a meticulous investor must assess Free Cash Flow and Return on Capital to gain deeper insights and avoid sophomoric conclusions.While he favors underappreciated and misunderstood equities, he also acknowledges that some growth stocks do deserve their premium valuation, and its an investor's primary goal to delve deeper and uncover if the market's current opinion is correct or not.
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