Small-cap equities ended 2020 on strong notes and while some market observers believe a near-term pullback, the annual outlook for smaller stocks is exceedingly bright. Still, it pays for asset allocators to examine to go beyond traditional strategies. A unique idea backed by excellent performance is the ERShares International Equity ETF (NYSEARCA: ERSX).
ERSX selects the most entrepreneurial, primarily Non-US Small Cap companies, that meet the thresholds embedded in their proprietary Entrepreneur Factor (EF). ERShares’ ETF delivers strong performance across a variety of investment strategies without disrupting investors’ underlying risk profile metrics. Their geographic diversity enables them to harness global advantages through additional returns associated with currency fluctuations, strategic geographic allocations, comparative trade imbalances, and relative supply/demand strengths.
Much of the allure of with ERSX is attributable to its overweight positions in healthcare stocks relative to standard to small-cap benchmarks, particularly high-flying biotech and genomics names.
ERSX: More to the Story
ERShares Chief Investment Officer Eva Ados highlights recent strength in small caps, which could set the stage for more upside for ERSX this year.
“Ms. Ados identifies great opportunities in Small Cap. companies and notes that on a historical basis they have outperformed Large Caps over an extended period of time. Moreover, she notes that Small Caps have generated twice the performance of the Large Caps over the past 3 months and believes this behavior will continue into 2021,” according to the issuer.
Looking to this year, international equities have increasingly become an attractive option for investors looking to generate income and pursue higher total return potential. Investors may want to take cues from institutional players today and not wait until 2021 for international allocations.
The ERShares ETF selects the most entrepreneurial, primarily Non-US Small Cap companies, that meet the thresholds embedded in their proprietary Entrepreneur Factor (EF). ERShares’ ETF delivers strong performance across a variety of investment strategies without disrupting investors’ underlying risk profile metrics. Their geographic diversity enables them to harness global advantages through additional returns associated with currency fluctuations, strategic geographic allocations, comparative trade imbalances, and relative supply/demand strengths
Ados “suggests that there are better opportunities ahead in the Healthcare sector and is especially optimistic regarding 5 female-led, high-potential genomics companies. She believes there are many opportunities in the New Year and expects entrepreneurial companies will continue to innovate, pivot, and lead the way as they have done this year as well as years past.”
For more on entrepreneurial strategies, visit our Entrepreneur ETF Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.