blog

Latest from the Quantamize Blog

Top ETF Ideas for the Week: Models Favor Small-Caps While Highlighting Opportunity in US and Chinese Large-Cap ETFs

May 13, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

Top ETF Ideas for the Week

Name Ticker Size Exposure Smart Beta Rating Trading Signal
SPDR S&P 600 Small Cap ETF SLY Small-Cap Best Buy
Vanguard Small-Cap ETF VB Small-Cap Best Buy
iShares Russell 2000 ETF IWM Small-Cap Best Buy
SPDR S&P 600 Small Cap Value ETF SLYV Small-Cap Best Buy
Schwab US Small-Cap ETF SCHA Small-Cap Best Buy
Vanguard Russell 2000 ETF VTWO Small-Cap Best Buy
iShares Core S&P Small-Cap ETF IJR Small-Cap Best Buy
Invesco S&P 500 Equal Weight ETF RSP Large-Cap Best Buy
iShares China Large-Cap ETF FXI Large-Cap Best Buy

Source: ETF Global

 

  • The Quantamize models continue to highlight small-cap ETFs with 7 of the 9 top ETF ideas highlighted above investing strictly in small-cap stocks.
     
  • The elevated outflows in the iShares Russell 2000 ETF (IWM) indicate negative sentiment surrounding the fund, potentially offering evidence for an attractive contrarian US small-cap play. Specifically, our models appear to favor US small-cap stocks and small-cap value stocks within the overarching small-cap ETF strategy, as represented by the SPDR S&P 600 Small-Cap Value ETF (SLYV) being highlighted above alongside several US-specific small-cap ETFs.
     
  • Aside from small-cap ETFs, our models found opportunity over the weekend in US and Chinese large-cap stocks.
     
  • Investors who are bullish long-term on US large-cap stocks may want to take this opportunity to buy the Invesco S&P 500 Equal Weight ETF (RSP) while investors who are bullish on Chinese large-cap stocks should consider buying the iShares China Large-Cap ETF (FXI).
     
  • It is important to note that the RSP has observed largely positive inflows over the last 3 months while the FXI has observed largely negative outflows over the last 3 months, speaking to the difference in sentiment that has surrounded stocks in the two geographic regions. 

Fund Flow Data of Top ETF Ideas for the Week 

Ticker Name 1-Day
Fund Flow ($)
1-Week
Fund Flow ($)
1-Month
Fund Flow ($)
3-Month
Fund Flow ($)
Assets Under
Management ($ billions)
Net Expense
Ratio (%)
SLY SPDR S&P 600 Small CapETF $0 -$3,578,205 -$6,861,068 $3,327,914 $1.29 0.15%
VB Vanguard Small-Cap ETF -$26,915,632 -$202,307,034 $177,875,478 $126,773,660 $25.01 0.05%
IWM iShares Russell 2000 ETF -$195,298,500 -$403,044,535 -$2,098,047,135 -$2,106,632,155 $42.27 0.20%
SLYV SPDR S&P 600 Small CapValue ETF $0 $3,129,313 $22,013,731 $135,666,325 $2.12 0.15%
SCHA Schwab US Small-Cap ETF $7,152,829 $7,152,829 $133,130,311 $219,399,683 $8.29 0.05%
VTWO Vanguard Russell 2000 $0 $0 -$34,861,750 -$37,905,000 $1.54 0.15%
IJR iShares Core S&P Small-Cap ETF $0 -$235,781,020 $55,220,535 $474,218,890 $44.56 0.07%
RSP Invesco S&P 500 Equal Weight ETF $0 $47,545,650 $160,623,600 $477,865,750 $15.89 0.20%
FXI iShares China Large-Cap ETF -$87,685,500 -$203,810,010 -$243,974,310 -$356,372,130 $5.71 0.74%

 

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS