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Small is BIG! Top ETF Ideas this Week: BIG Opportunity in Small-Cap ETFs!

Apr 22, 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
iShares Russell 2000 Value ETF IWN Small-Cap Best Buy
SPDR S&P 600 Small-Cap Value ETF SLYV Small-Cap Best Buy

Source: ETF Global

 

  • Small is BIG for sure!  Our models show a bias towards small-cap stocks again this week with all of the 5 ETFs highlighted above being small-cap funds!
     
  • This is quite intriguing when the negative fund flows of small-cap ETFs, seen below, are taken into account.
     
  • Although the performance of US small-cap stocks has been in-line with that of US large-cap stocks in 2019, small-cap stocks have underperformed more recently.
     
  • On a year-to-date basis, both the iShares Russell 2000 ETF (IWM) and the iShares Core S&P 500 ETF (SPY) have generated a total return of 16.55%. Since the beginning of March, however, the IWM’s total return of –0.46% lags the SPY’s total return of 4.53%.
     
  • Within small-cap stocks, our models favor companies with an attractive value factor exposure, as represented by the iShares Russell 2000 Value ETF (IWN) and the SPDR S&P 600 Small-Cap Value ETF (SLYV) being highlighted above.

 

Top ETF Ideas for the Week - Fund Flows Analysis

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 (%)
iShares Russell 2000 ETF IWM -$678,277,665 -$1,219,895,805 -$1,089,679,370 -$2,462,231,980 $42.65 0.20%
iShares Russell 2000 Value ETF IWN $0 $0 $12,549,235 -$426,541,910 $9.41 0.24%
SPDR S&P 600 Small CapETF SLY $0 $0 -$6,590,724 $19,492,119 $1.28 0.15%
SPDR S&P 600 Small CapValue ETF SLYV $0 $3,115,937 $15,167,687 $220,815,139 $2.11 0.15%
Vanguard Small-Cap ETF VB $31,184,000 $50,947,630 -$87,862,080 -$617,011 $24.89 0.05%

Source: ETF Global

 

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