Heading into 2015, a compelling case can be made for TITL taking on a leadership role among broad market ETFs. Although value stocks and ETFs have been in favor with investors for much of this year, the iShares Russell 2000 ETF (NYSEArca: IWM) has recently been picking up the pace, adding 3.3% over the past month.
Smaller companies have been increasing capital expenditures, which would allow them to capitalize off an expanding economy. Small-caps are also raising cash returns to shareholders. Additionally, small-capitalization stocks are more likely to benefit from merger and acquisition activity. [Small Caps Can Rise in 2015]
TILT has established a following with investors. With nearly $759 million in assets under management, the ETF is one of the jewels in the FlexShares lineup. Importantly, $171 million of that total has come into the fund this year. [The Rise of FlexShares]
FlexShares Morningstar US Market Factor Tilt Index Fund
Tom Lydon’s clients own shares of IWM.