SMDV allocates about 43.6% of its combined weight to the utilities and financial services sectors. Industrial and consumer staples names combine for 28%. The weighted average market value of SMDV’s holdings is $2.11 billion.
Small-caps are also focused on the domestic economy and have less direct exposure to global geopolitical uncertainty and currency risks, as opposed to large-cap companies that have an international footprint, which may be affected by overseas risks and a strengthening U.S. dollar.
When looking at the price-to-earnings ratio and also accounting for inflation, the Russell 2000 is actually trading below its historical mean but still well within its historical one-standard-deviation band. SMDV is up 2% over the past week.
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