blog

Latest from the Quantamize Blog

Top ETF Ideas for the Week: Small-Cap ETFs Remain in Focus, Models Highlight Best US and China ETFs

Jun 03, 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
SPDR S&P 600 Small Cap Value ETF SLYV Small-Cap Best Buy
Schwab U.S. 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
John Hancock Multifactor Small Cap ETF JHSC Small-Cap Best Buy

Source: ETF Global

 

  • Small-cap ETFs remain at the forefront of our Top ETF Ideas of the Week with 6 of the 8 ETF ideas highlighted above maintain an exposure to small-cap stocks. US small-cap stocks have significantly underperformed their large-cap counterparts both in May and in 2019; the small-cap focused Russell 2000 Index fell 7.8% in May and is up just 9.2% in 2019 while the S&P 500 Index fell only 6.4% in May and is up 10.7% in 2019.
  • In keeping with the trend of the last few weeks, the Quantamize models are specifically highlighting a value factor investing strategy within US small-cap stocks with the SPDR S&P 600 Small-Cap Value ETF (SLYV) and the iShares Russell 2000 Value ETF (IWN) among those highlighted above.
     
  • Escalating trade concerns between the US and China were among the top drivers of the rout in US and Chinese stocks in May. In the month, the Hang Seng Index fell 13.4% while the S&P 500 Index fell 6.4% (as previously stated). For investors that expect a turnaround in US and/or Chinese stocks, our models suggest buying the Invesco S&P 500 Equal Weight ETF (RSP) and/or the iShares China Large-Cap ETF (FXI).

Fund Flows for 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 $12,884,500 $19,495,880 $19,787,393 $1.23 0.15%
Vanguard Small-Cap ETF VB -$6,768,205 $19,830,490 $32,959,407 $107,116,456 $24.13 0.05%
SPDR S&P 600 Small Cap Value ETF SLYV $0 $14,760,731 $33,329,160 $74,207,338 $2.02 0.15%
Schwab U.S. Small-Cap ETF SCHA $0 -$33,973,106 $77,088,114 $269,865,024 $8.04 0.05%
Invesco S&P 500 Equal Weight ETF RSP $0 $4,866,750 $79,434,900 $365,723,800 $15.50 0.20%
iShares China Large-Cap ETF FXI $0 -$121,653,810 -$490,076,835 -$557,802,900 $5.28 0.74%
iShares Russell 2000 Value ETF IWN -$34,692,840 -$46,324,310 -$94,431,220 -$396,098,970 $8.65 0.24%
John Hancock Multifactor Small Cap ETF JHSC $626,005 $5,716,277 -$2,679,217 $35,942,150 $0.41 0.50%

 

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