The average market value of the ETF’s holdings is $4.56 billion. Home to $333.7 million in assets under management, RWK allocates over 51% of its combined weight to the technology, industrial and consumer discretionary sectors. Materials, healthcare and financial services names combine for nearly 29%.
Related: A Fundamental Index-Based ETF Strategy to Diversify a Portfolio
Middle capitalization stocks, or sometimes referred to as the market’s sweet spot, could help investors achieve improved risk-adjusted returns. Mid-cap companies are slightly more diversified than their small-cap peers, which allows many mid-sized companies to generate more consistent revenue and cash flow and provide more stable stock prices. Additionally, they are not so big that their size would slow down growth.
When comparing RWK to the benchmark S&P MidCap 400, the revenue-weighted ETF takes a greater tilt toward small-capitalization stocks and leans toward the value category. The ETF has a 0.39% expense ratio.
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