Small-Cap

Long-term investors who are more likely to shake off short-term swings should take a look at small-cap value stocks and related exchange traded funds for potentially better returns. Many market observers have extolled the long-term benefits of small-cap stocks, and going one step further, the small-cap value category could provide even better returns, writes Sheyna […]

Exchange traded fund investors who are still interested in U.S. equities exposure should focus on the smaller segment of Corporate America. “For equity exposure, stay here in the U.S.,” with an emphasis toward smaller stocks, Jim McCaughan, chief executive of Principal Global Investors, said on CNBC. For instance, the iShares Core S&P Mid-Cap ETF (NYSEArca: […]

Investors have piled into small-cap exchange traded funds, chasing the stronger returns in smaller company stocks as large-cap benchmarks plod along. So far this month, the iShares Russell 2000 ETF (NYSEArca: IWM) has attracted $3.3 billion in net asset inflows and the Vanguard Small Cap ETF (NYSEArca: VB) added $1.2 billion in net inflows, according […]

Warren Buffett has put his stamp of approval on Australia’s outlook, and investors who want exposure to the market can look through a number of country-specific exchange traded funds. Buffett stated that he will spend over $2 billion per year to build out an Australian equities portfolio, reports Nyshka Chandran for CNBC. “If you come […]

With Chinese mainland A-shares surging this year, investors seeking exposure to the emerging market may be better off with China H-shares and related country-specific exchange traded funds. “The H-share index is much more attractive versus the A-shares at the moment, and we’re positioned that way,” Helen Zhu, head of China equities at BlackRock , told […]

While U.S. markets stumbled over the past month, small-capitalization stock exchange traded funds have outperformed, and more investors are taking notice. Over the past month, the iShares Core S&P Small-Cap ETF (NYSEArca: IJR) rose 1.4%, Vanguard Small Cap ETF (NYSEArca: VB) was up 0.8% and iShares Russell 2000 ETF (NYSEArca: IWM) gained 1.7%. In contrast, […]

Instead of tracking the markets with broad market-capitalization-weighted investments, investors can potentially enhance returns through new smart-beta exchange traded fund strategies. On the recent webcast, Rethinking Alpha: New Avenues to Portfolio Enhancement, Mitch Zacks, Director of Quantitative Modeling for Zacks Investment Research, argues that investors can generate alpha through passive index-based ETFs that track actively […]

ETF spotlight on the ETFS Zacks Earnings Small-Cap U.S. Index Fund (NYSEArca: ZSML), part of an ongoing series. Assets: $2.8 million Objective: The Zacks Earnings Small-Cap U.S. Index Fund tries to reflect the performance of the Zacks Earnings Small-Cap U.S. Index, which selects stocks based on the analysis of their earnings through a quantitative model, […]

Currency-hedged Eurozone-related exchange traded funds have gained a lot of traction this year after the central bank enacted an aggressive quantitative easing program, and with first quarter earnings coming in, it seems like the stimulus efforts are working. Europe ETFs that hedge against a depreciating euro currency have been among the best developed market investments […]

European markets are dominating headlines this year, from both an economic policy front, with Mario Draghi unleashing a fresh round of monetary stimulus, and a market performance perspective, with European bourses leading indexes higher and the euro tanking1. As a result, flows are coming into European-focused funds, particularly those that hedge currency risk. In particular, […]

As the U.S. dollar strengthens against foreign currencies and hurts Corporate America’s overseas profits, equity investors should consider small- and mid-cap exchange traded funds that track companies doing more business at home. For instance, the iShares Core S&P Mid-Cap ETF (NYSEArca: IJH) and SPDR S&P MidCap 400 ETF (NYSEArca: MDY) both track the S&P MidCap […]

Investors seeking to break away from a top-heavy, market-capitalization-weighted index can take a look at a new breed of smart-beta exchange traded funds that equally weight components. For instance, the ETFS Zacks Earnings Large-Cap U.S. Index Fund (NYSEArca: ZLRG) and the ETFS Zacks Earnings Small-Cap U.S. Index Fund (NYSEArca: ZSML) not only equally weight component […]

I do the “ETF of the Week” for MarketWatch every week on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments among exchange traded funds. This week, I looked at the ETFS Zacks Earnings Small-Cap U.S. Index Fund (NYSEArca: ZSML). The relatively new smart-beta ETF provides a targeted approach to smaller companies with […]

While the equities market is still positive so far this year, U.S. stocks and exchange traded funds retreated over March as concerns over the U.S. dollar strength and energy sector weakness weighed on the earnings outlook ahead. The Nasdaq Composite gained 3.0% and the S&P 500 rose 4.4% so far this year. Meanwhile, the Dow […]

Investors seeking to diversify their international portfolios should also consider small-cap exchange traded fund options. For instance, the Vanguard FTSE All World ex-US Small-Cap ETF (NYSEArca: VSS) tracks the FTSE Global Small-Cap ex-US Index, which provides exposure to 3,241 small-cap global companies taken from 43 countries. “The main reason to own international small caps is […]

We have not previously covered the ETF provider known as Lattice Strategies out of San Francisco in this piece prior to today, but the firm brought a new actively managed ETF product to market this week, ROGS (Lattice Strategies Global Small Cap Strategy, Expense Ratio 0.60%). An article in ETFTrends.com earlier this week by Todd […]

While the U.S. dollar strengthens, investors should consider mid- and small-cap exchange traded funds that cover companies with little or no international sales exposure to capture the continued U.S. expansion. For instance, the iShares Core S&P Mid-Cap ETF (NYSEArca: IJH) and SPDR S&P MidCap 400 ETF (NYSEArca: MDY) both track the S&P MidCap 400 Index, […]

Investors who want to diversify away from large companies can utilize to exchange traded funds to track the smaller segment of the U.S. equities markets. For instance, the PowerShares FTSE RAFI 1500 Small-Mid Portfolio (NYSEArca: PRFZ) provides significant exposure to small U.S. stocks, along with some mid-cap exposure, and also shows a value tilt due […]

Investors should consider small-cap exchange traded funds beyond ones that reflect the Russell 2000 Index as the popular benchmark’s shortcomings may cause it to underperform other indices. The Russell 2000 Index has trailed the S&P SmallCap 600, MSCI USA Small Cap and CRSP U.S. Small Cap indices by over an annualized 1.4% from the end […]

The flow of easy money has fueled the U.S. equities market, and with global central banks turning on their money printing presses, the global push toward riskier assets may help lift broad international small-cap exchange traded funds. Frank Gannon, co-chief investment officer for Royce, argues that the Federal Reserve’s near-zero interest rates for the past […]

Middle-capitalization stocks and asset category exchange traded funds are leading the charge as investors focus on companies better positioned to capitalize on continued U.S. growth. For instance, the iShares Core S&P Mid-Cap ETF (NYSEArca: IJH) and SPDR S&P MidCap 400 ETF (NYSEArca: MDY) were up 3.8% year-to-date. In contrast, the e iShares Russell 2000 ETF […]

More attractive valuations in small company stocks relative to their larger counterparts and the U.S. growth outlook are helping small-cap exchange traded funds reach new highs. The iShares Russell 2000 ETF (NYSEArca: IWM), which tracks the benchmark Russell 2000 index of small-cap stocks, reached an all-time high Thursday, trading 5.2% higher over the past three […]

With the equities market pushing forward, some are beginning to grow cautious on small-capitalization stocks and related exchange traded funds that reveal frothier valuations, potentially capping further gains. For example, the iShares Russell 2000 ETF (NYSEArca: IWM) has a 18.6 price-to-earnings ratio, iShares Core S&P Small-Cap ETF (NYSEArca: IJR) has a 18.7 P/E and Vanguard […]

The strong U.S. dollar has weighed on large-cap companies with overseas foreign exchange exposure, but small-cap consumer sector exchange traded funds may capitalize on improved growth at home. For instance, ETF investors can use the PowerShares S&P SmallCap Consumer Staples Portfolio (NasdaqGM: PSCC) and PowerShares S&P SmallCap Consumer Discretionary Portfolio (NasdaqGM: PSCD) cover the consumer […]

Broad regulatory restrictions were placed on the banking industry, following the financial downturn. However, small-cap financial exchange traded funds may outperform as the smaller Main Street banks pushes for regulators to relax Dodd-Frank rules that were intended for Wall Street. For instance, the PowerShares S&P SmallCap Financials Portfolio (NYSEArca: PSCF) and First Trust NASDAQ ABA […]

Small-capitalization stock exchange traded funds that follow a dividend theme may have a greater value tilt, providing relatively cheaper valuations compared to the broader market. For instance, the WisdomTree SmallCap Dividend Fund (NYSEArca: DES) offers a strong value tilt, according to Morningstar analyst Alex Bryan. DES tracks the WisdomTree SmallCap Dividend Index, which is comprised […]

The appreciating U.S. dollar is taking its toll on larger companies’ revenue with significant overseas exposure. On the other hand, mid- and small-cap exchange traded funds track companies that expand with the growing U.S. economy. After companies like Procter & Gamble (NYSE: PG) and Pfizer (NYSE: PFE) announced disappointing earnings results due the stronger greenback […]

When picking out small-capitalization stock exposure, exchange traded fund investors may be better of with funds based on alternative indices that weed out weaker companies. For instance, small-cap ETFs like the WisdomTree SmallCap Dividend Fund (NYSEArca: DES), PowerShares Fundamental Pure Small Cap Core Portfolio (NYSEArca: PXSC) and First Trust Small Cap Core AlphaDEX Fund (NYSEArca: […]

Now that the euro currency has plunged against the U.S. dollar, European small-caps and related exchange traded funds could outperform their larger counterparts as domestically produced goods look cheaper to consumers than imported wares. For instance, the WisdomTree Europe SmallCap Dividend Fund (NYSEArca: DFE) and SPDR EURO STOXX Small Cap ETF (NYSEArca: SMEZ) provide exposure […]

ETF Trends publisher Tom Lydon appeared on Fox Business Friday to discuss potential investment themes for the new year. For instance, investors can seek out value plays in small-cap stocks and European equities. Watch the video below to see the full interview. To view past video interviews, visit our video section.