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Top ETF Ideas of the Week: Models Signal Time to Buy Small-Cap Stocks

May 28, 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
Invesco S&P 500 Equal Weight ETF RSP Large-Cap Best Buy
iShares China Large-Cap ETF FXI Large-Cap Best Buy
iShares Russell 2000 Value ETF IWN Small-Cap Best Buy

Source: ETF Global

 

  • The Quantamize models continue to highlight attractive opportunity in US small-cap stocks with 6 of the 8 top ETF ideas highlighted above maintaining a small-cap investment focus. So far in May, US small-cap stocks have structurally underperformed their large-cap counterparts with the iShares Russell 2000 ETF (IWM) down 4.74% month-to-date and the SPDR S&P 500 ETF (SPY) down 3.82% month-to-date, as of Friday’s close.
  • Additionally, the Quantamize models favor a value factor investing approach within US small-cap stocks with 2 of the 6 US small-cap ETFs highlighted above maintaining a value investing strategy.  
  • The SPDR S&P 600 Small-Cap Value ETF (SLYV) has a “BUY” trading signal and a “Best” Smart Beta rating. 
  • The iShares Russell 2000 Value ETF (IWN) has a “BUY” trading signal and a “Best” Smart Beta rating.
     
  • Both US large-cap and China large-cap stocks are trading at a discount as investors have sold off the geographic regions amid growing uncertainty surrounding US-China trade negotiations. For investors who believe that the outlook for US and Chinese large-cap stocks will improve, our models highlight the Invesco S&P 500 Equal Weight ETF (RSP) and the iShares China Large-Cap ETF (FXI) as attractive opportunities.
  • The RSP has a “BUY” trading signal and a “Best” Smart Beta rating.  
  • The FXI has a “BUY” trading signal and a “Best” Smart Beta rating.

 

Fund Flow Data of Top ETF Ideas for the Week 

Name Ticker 1-Day Fund Flow ($) 1-Week Fund Flow ($) 30-Day Fund Flow ($) 90-Day Fund Flow ($) Assets Under Management ($ billions) Net Expense Ratio (%)
SPDR S&P 600 Small Cap ETF SLY $0 $3,321,854 $6,611,379 -$64,060 $1.23 0.15%
Vanguard Small-Cap ETF VB -$34,194,491 -$66,557,921 -$48,491,342 $64,991,711 $24.13 0.05%
iShares Russell 2000 ETF IWM $38,125,225 -$203,580,070 -$779,198,725 -$1,622,871,475 $40.64 0.20%
SPDR S&P 600 Small Cap Value ETF SLYV $8,938,971 $8,938,971 $43,198,737 $81,186,139 $2.02 0.15%
Schwab US Small-Cap ETF SCHA $0 $28,410,520 $132,625,088 $286,009,839 $8.04 0.05%
Invesco S&P 500 Equal Weight ETF RSP -$5,232,450 -$15,702,650 $90,776,500 $355,624,600 $15.50 0.20%
iShares China Large-Cap ETF FXI -$61,218,000 -$73,554,480 -$429,641,025 -$497,367,090 $5.28 0.74%
iShares Russell 2000 Value ETF IWN $0 -$59,985,730 -$66,717,500 -$387,171,490 $8.65 0.24%

 

 

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