“Historical evidence suggests that a revenue-weighted portfolio can maintain stable country and sector exposures during market price swings, since strategies are grounded by a company fundamental, rather than by stock prices, and are rebalanced quarterly,” according to Oppenheimer.
RWJ is positioned cyclically at the sector level as consumer discretionary and industrial names combine for over 51% of the ETF’s weight. The financial services and technology sectors combine for almost 21% of the fund’s roster.
RWJ’s holdings have a weighted average market value of $1.53 billion. The ETF has a standard deviation of 17.2%.
Another way to interpret the current market conditions among small-cap stocks is by the length and breadth of their performance. Small-cap bull markets have lasted a median 698 trading days with a total median total index return of 106.8%. For the current bull market that started February 11, 2016, it has been 446 days with a total return of 57.6% as of November 15, 2017.
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