Invesco S&P Smallcap 600 Pure Value ETF (ARCA: RZV)

Dernières nouvelles pour Invesco S&P Smallcap 600 Pure Value ETF (ARCA:RZV)

Invesco S&P Smallcap 600 Pure Value ETF

Guggenheim S&P Smallcap 600 Pure Value ETF

Consumer Cyclical

Financial Services

Consumer Defensive

Industrials

Energy

Real Estate

Technology

Healthcare

Other

Basic Materials

Communication Services

Utilities

The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is composed of a subset of securities from the S&P SmallCap 600 Index that exhibit strong value characteristics. The fund is non-diversified.

Bread Financial Holdings Inc

Jetblue Awys Corp

World Fuel Services Corp

Phinia Inc

Echostar Corp

Harsco Corp

Clearwater Paper Corp

Benchmark Electronics Inc

Ncr Atleos Corporation

Kelly Services Inc

Spartannash Co

Lincoln National Corp

United Natural Foods Inc

Dana Inc

Titan International Inc

Par Pacific Holdings Inc

B&g Foods Inc

'kohl's Corp Common Stock Usd 0.01'

Adient Plc

World Kinect Corp

Viasat Inc

Proassurance Corp

Fresh Del Monte Produce Inc

Ezcorp, Inc. - Class A

Foot Locker Inc

Advance Auto Parts Inc.

National Vision Holdings Inc

Topgolf Callaway Brands Corp

Advance Auto Parts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAP#NYSE">AAP</a>) disclosed that it completed the store closure phase of its transformation plan and is now <a target="_blank" href="https://www.benzinga.com/pressreleases/25/03/b44489290/advance-auto-parts-opening-new-stores-after-completing-strategic-optimization-of-u-s-retail-footpr" rel="noreferrer noopener">shifting focus to its returning to growth</a>.
The company stated that as of now, over 75% of its stores are in markets where it holds the No. 1 or No. 2 position by store density, reinforcing its presence in key areas.
With this phase complete, the company plans to open 30 new U.S. locations in 2025 and at least 100 more through 2027, including larger &#8220;market hubs.&#8221;
Notably, since the start of the year, Advance has opened six new stores across Florida, New Jersey, Tennessee, and Virginia, with more locations set to launch in Florida, Illinois, Maryland, Ohio, Virginia, and Wisconsin in the coming months.
The company is also expanding its market hubs in the Midwest, offering 75,000 to 85,000 SKUs, a significant increase from the 20,000 to 25,000 typically found in its stores.
These hubs are expected to enhance part availability and enable same-day delivery, improving service speed for customers and nearby Advance locations.
Last month, the company reported fourth-quarter adjusted earnings per share of $1.18 loss, which was in line&nbsp;with the analyst consensus estimate and quarterly sales of $2 billion outpaced<a target="_blank" href="https://www.benzinga.com/news/earnings/25/02/43973611/advance-auto-parts-q4-sales-beat-expectations-but-margins-slide-stock-dips" rel="noreferrer noopener"> the street view of $1.93 billion</a>.
The company disclosed its long-term aim to optimize its supply chain by consolidating distribution centers and opening <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">60 market hubs by mid-2027</a>.
Investors can gain exposure to the stock via Invesco S&amp;P Smallcap 600 Pure Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RZV#NYSE">RZV</a>) and Invesco Exchange-Traded Fund Trust II Invesco S&amp;P SmallCap 600 Revenue ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWJ#NYSE">RWJ</a>).
Price Action: AAP shares are up 0.27% at $37.64 premarket at the last check Wednesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/movers/25/02/44018604/is-advance-auto-parts-turning-the-corner-analyst-predicts-slow-recovery-and-market-share-losses" target="_blank" rel="noreferrer noopener">Is Advance Auto Parts Turning The Corner? Analyst Predicts Slow Recovery And Market Share Losses</a></li>
</ul>
Photo: Refina via Shutterstock.

Equities

Mid Cap

News

Guidance

Advance Auto Parts Accelerates Growth Plan With 130+ New Stores By 2027

ViaSat, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VSAT#NASDAQ">VSAT</a>) shares were trading relatively<a href="https://www.benzinga.com/movers" target="_blank" rel="noreferrer noopener"> flat in the premarket session on Tuesday.</a>
The company today announced that the NATO Military Committee has approved its next-generation DARC-ssd 600 for securing up to NATO SECRET data at rest.
This approval and its listing in the NATO Information Assurance Product Catalogue confirm that Viasat&#8217;s solution meets NATO&#8217;s strict requirements for securing classified data from theft or compromise.
The DARC-ssd 600 provides enhanced protection for classified information across various systems, including laptops, tablets, desktops, and network-attached storage devices.
The new model, designed and manufactured in the U.K., features a 685 billion parameter architecture and uses hardware-based encryption for superior data security.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/guidance/25/03/44470278/shell-unveils-new-strategy-higher-buybacks-cost-cuts-and-10-annual-free-cash-flow-growth" rel="noreferrer noopener">Shell Unveils New Strategy: Higher Buybacks, Cost Cuts And 10% Annual Free Cash Flow Growth</a>
Viasat&#8217;s DARC-ssd 600 integrates 256-bit AES hardware encryption with full disk encryption, ensuring data is decrypted upon bootup and encrypted when powered off.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, VSAT stock has lost over 35% in the past month. Investors can gain exposure to the stock via&nbsp;Procure Space ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UFO#NASDAQ">UFO</a>) and&nbsp;Invesco S&amp;P Smallcap 600 Pure Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RZV#NYSE">RZV</a>).
Recently, NASA selected Viasat to support its direct-to-Earth capabilities through the&nbsp;<a target="_blank" href="https://www.benzinga.com/25/01/43106377/why-viasat-stock-is-gaining-today" rel="noreferrer noopener">Near Space Network Services contract.</a>
This is part of a five-year, multi-award indefinite delivery, indefinite quantity (IDIQ) contract, valued at $4.82 billion, with a potential five-year extension. Viasat is one of four commercial companies chosen for this initiative.
Under the contract, Viasat will provide global ground segment support services for NASA missions, initially focusing on low Earth orbit operations. Viasat will use its Real-Time Earth Ground-Segment-as-a-Service network to offer resilient, high-throughput satellite-to-ground communications.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/tech/25/03/44471753/teslas-china-weekly-insured-numbers-hit-new-year-to-date-high-gary-black-says-tslas-europe-sales-decline-not-relevant" target="_blank" rel="noreferrer noopener">Tesla&#8217;s China Weekly Insured Numbers Hit New Year-To-Date High: Gary Black Says TSLA&#8217;s Europe Sales Decline Not Relevant</a></li>
</ul>
Photo: Shutterstock

Markets

Movers

General

VSAT

What's Going On With ViaSat Stock Today?

Dana Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAN#NYSE">DAN</a>) shares traded higher on Friday after the company disclosed FY24 preliminary results, FY25 <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/n43187369/dana-incorporated-provides-business-update-announces-preliminary-full-year-2024-financial-results-" rel="noreferrer noopener">outlook and provided a business update</a>.
FY24 Preliminary Results: The company reported sales of around $10.3 billion (vs. consensus of $10.29 billion), in line with prior guidance but down from $10.6 billion in 2023.
This was due to weaker demand for electric vehicles, commercial trucks, and off-highway equipment, along with higher light truck inventory.
Also, adjusted EBITDA rose to about $885 million and 8.6% margin from $845 million and 8.0% margin in 2023, led by efficiency gains. Moreover, Dana&#8217;s free cash flow stood at $70 million versus an outflow of $25 million in 2023.
Also Read: <a href="https://www.benzinga.com//node/43172806">Tesla Lost $15 Billion In Brand Value In 2024, Report Says: Did Elon Musk&#8217;s Political Push Hurt EV Giant?</a>
R.&nbsp;Bruce McDonald, chairman and chief executive officer, said, &#8221;Our cost-savings actions are well underway, and we are pleased to increase our total cost reduction target to&nbsp;$300 million&nbsp;through 2026.&#8221;
&#8221;Our 2025 outlook reinforces the impact of these actions, which will help solidify Dana&#8217;s leadership position and enable us to capitalize on the strength of our traditional on-highway businesses while remaining a leader in the EV transition.&#8221;&nbsp;
Apart from this, the company plans to restructure its business segments in the first quarter of 2025.
The new segments will be Light Vehicle Systems and Commercial Vehicle Systems. The company integrated Power Technology&#8217;s OEM units into Light Vehicle Drive Systems and its aftermarket business into Commercial Vehicle Drive and Motion Systems.
The reorganization aligns with its plan to sell the Off-Highway business, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/n42175787/dana-announces-leadership-transition-and-actions-to-accelerate-value-creation" rel="noreferrer noopener">announced in November 2024</a>.
While a strong interest in the business&nbsp;suggests a potential deal by first-quarter earnings, there is no guarantee of a transaction. The Off-Highway segment will be classified as discontinued operations once an agreement is reached.
FY25 Outlook: Dana expects sales of $9.525 billion- $10.025 billion (vs. consensus of $9.83 billion), adjusted EBITDA of $925 million-$1.025 billion (10.0% margin at the midpoint), and <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">free cash flow of $175 million-$275 million</a>.
Timothy Kraus, senior vice president and chief financial officer, said, &#8220;While sales are expected to be lower for the year, mainly driven by lower demand for off-highway equipment and translation of foreign currency, the impact of our cost-savings actions totaling&nbsp;$175 million&nbsp;in 2025 and efficiency improvements will drive higher margins.&#8221;
Investors can gain exposure to the stock via LeaderShares Activist Leaders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACTV#NYSE">ACTV</a>) and Invesco S&amp;P Smallcap 600 Pure Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RZV#NYSE">RZV</a>).
Price Action: DAN shares are up 18.4% at $15.66 at last check Friday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com//node/43190630" target="_blank" rel="noreferrer noopener">American Express Q4 Earnings: Revenue Beat, Record Spending and Card Acquisitions, 17% Dividend Hike And More</a></li>
</ul>
Image via Shutterstock.

Earnings

Small Cap

ACTV

Dana's FY24 Preliminary Results Highlight Increased Margins Amid EV Demand Slowdown; Stock Jumps

Clearwater Paper Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLW#NYSE">CLW</a>) shares are trading higher after the company inked a deal to sell its tissue business to Sofidel America Corporation for $1.06 billion, subject to adjustments for debt, cash, transaction <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b39878259/clearwater-paper-enters-into-definitive-agreement-to-sell-tissue-business-to-sofidel-america-corpo" rel="noreferrer noopener">expenses, and net working capital</a>.
The price is about six times the tissue segment&#8217;s Adjusted EBITDA for the 12 months ending March.
The transaction represents the next step in Clearwater Paper&#8217;s transformation to become a premier independent supplier of paperboard to North American converters and the conclusion of its previously announced review of <a target="_blank" href="https://www.benzinga.com//node/37223338" rel="noreferrer noopener">strategic options for the tissue business.</a>
The deal is expected to close in late 2024, pending standard conditions. The company anticipates net proceeds of around $850 million from the sale, which will be used to significantly reduce debt and fund growth initiatives for its ongoing operations. As of March-end, Clearwater had a <a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/b38502081/clearwater-paper-reports-first-quarter-2024-results" rel="noreferrer noopener">net debt of $392.9 million</a>.
Arsen Kitch, President and Chief Executive Officer, said, &#8220;Clearwater Paper is transforming into a premier paper supplier in North America. Upon completion of this transaction, we intend to deleverage our balance sheet while scaling and diversifying our paperboard business to meet the needs of our customers.&#8221;
The company will announce it will report its second-quarter 2024<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener"> results on August 6, 2024</a>.
Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P Smallcap 600 Pure Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RZV#NYSE">RZV</a>) and First Trust DJ Select MicroCap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDM#NYSE">FDM</a>).
Price Action: CLW shares are up 9.66% at $53.65 at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock

Asset Sales

First Trust/First Trust Dow Jones Select MicroCap Index Fund

Clearwater Paper Focuses on Paperboard: Sells Tissue Business for $1.06B

Wall Street is currently witnessing the &quot;Great Rotation&quot; with investors shunning hot technology stocks in favor of smaller companies and other sectors. The combination of the Trump trade resurgence and the growing expectations of the Fed cutting rates in September has led to the rotation in the market.
The Dow Jones Industrial Average, which was underperforming, has gained 2.3% over the past week, outperforming the S&amp;P 500 and the Nasdaq Composite Index, which shed nearly 0.7% and 2.2%, respectively. The Russell 2000 small-cap index has risen 3.4% in a week. Value investing is also being favored by investors as it involves buying stocks or other financial assets that are believed to be undervalued or trading below their intrinsic worth.
Chances of Donald Trump winning in November have risen steadily in recent weeks. Trump favors higher tariffs, particularly on imports from China, that could potentially hurt semiconductor stocks. Technology names, which powered the bull market this year, have lost their sheen lately.
Trump prefers more deregulation, which will benefit the health insurance, energy and financial industries as well as small-cap companies. Proposed extensions of corporate and personal tax cuts could increase budget deficits and result in higher government borrowing. Consequently, longer-dated bond yields have surged lately, steepening the yield curve.
Inflation in the United States cooled in June to the slowest pace since 2021, spiking the bets for rate cuts as soon as possible. Fed Chairman Jerome Powell&#39;s latest comment that the Fed wouldn&#39;t wait for inflation to get to its 2% target before it began cutting rates also lent support to the rate cut bets. According to the CME FedWatch tool, traders now see a 100% chance of the Fed lowering rates in September.
Pint-sized companies have a higher level of debt, and lower rates generally lead to reduced borrowing costs. This helps small businesses to expand their operations more easily and results in increased profitability. A rate cut after two years of tightening would be a big relief for banks, which have been struggling with the impact of high rates on their profits and their borrowers. While lower rates can compress net interest margins for banks, it will encourage lending and potentially lead to increased consumer and business loan activity.
High-dividend-yield sectors such as utilities and real estate will be the biggest beneficiaries of rate cuts, given their sensitivity to interest rates. This is especially true as these offer higher returns due to their outsized yields. In real estate, lower rates can boost housing market activity by making mortgages more affordable.
Given the great rotation, some ETFs, which were depressed this year, have started to gain momentum and hit new 52-week highs in the latest trading session. We have highlighted them in detail below:
Invesco S&amp;P SmallCap 600 Pure Value ETF (ARCA:RZV) &ndash; 52-Week High: $110.00
Invesco S&amp;P SmallCap 600 Pure Value ETF offers exposure to the stocks of companies that exhibit strong value characteristics by tracking the S&amp;P SmallCap 600 Pure Value Index. It holds 143 stocks in its basket, with key holdings in financials, consumer discretionary and industrials sectors.
Invesco S&amp;P SmallCap 600 Pure Value ETF has AUM of $254.6 million and trades in an average daily volume of 12,000 shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #3 (Hold).
Financial Select Sector SPDR Fund (ARCA:XLF) &ndash; 52-Week High: $44.11
Financial Select Sector SPDR Fund ETF seeks to provide exposure to 71 companies in diversified financial services, insurance, banks, capital markets, mortgage real estate investment trusts, consumer finance, and thrifts and mortgage finance industries. It follows the Financial Select Sector Index, charging investors 9 bps in fees per year.
Financial Select Sector SPDR Fund is an ultra-popular ETF with AUM of $43 billion and trades in an average daily volume of 34 million shares. It carries a Zacks ETF Rank #1 (Strong Buy).
iShares U.S. Home Construction ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/itb#BATS">ITB</a>) &ndash; 52-Week High: $118.66
iShares U.S. Home Construction ETF provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index.
With an AUM of $2.8 billion, iShares U.S. Home Construction ETF holds a basket of 44 stocks, with a heavy concentration on the top two firms. The product charges 40 bps in annual fees and trades in a heavy volume of around 2 million shares a day, on average. iShares U.S. Home Construction ETF has a Zacks ETF Rank #3.
iShares U.S. Real Estate ETF (ARCA:IYR) &ndash; 52-Week High: $94.88
iShares U.S. Real Estate ETF offers exposure to the country&#39;s real estate companies and REITs, which invest in real estate directly and trade like stocks. It follows the Dow Jones U.S. Real Estate Capped Index. iShares U.S. Real Estate ETF holds a basket of 71 securities with key holdings in telecom tower REITs, industrial REITs and retail REITs. It has amassed $3.4 billion in its asset base while trading in a heavy volume of 4.2 million shares a day on average.
iShares U.S. Real Estate ETF charges 40 bps in annual fees and has a Zacks ETF Rank #3.
Vanguard Mega Cap Value ETF (ARCA:MGV) &ndash; 52-Week High: $124.31
Vanguard Mega Cap Value ETF follows the CRSP US Mega Cap Value Index, which measures the performance of the largest value stocks in the U.S. market. It holds 134 stocks in its basket, with key holdings in financials, healthcare, industrials and technology sectors.
Vanguard Mid-Cap Value ETF has amassed $8 billion and trades in an average daily volume of 170,000 shares. It charges 7 bps in fees per year and has a Zacks ETF Rank #1 with a Medium risk outlook.
<a href="https://www.zacks.com/stock/news/2305429/5-etfs-making-the-most-of-the-great-market-rotation?cid=CS-BENZ-FT-etf_news_and_commentary-2305429">To read this article on Zacks.com click here.</a>

Events

Analyst Ratings

Trading Ideas

ETFs

iShares Dow Jones US Homenstruction Index Fund

iShares Trust Dow Jones US Real Estate Fund Index

5 ETFs Making the Most of the Great Market Rotation

Rental car companies are not as energized as they used to be about electric vehicles (EVs), having found out that they are <a href="https://www.benzinga.com/insights/analyst-ratings/24/07/39645442/a-glimpse-into-the-expert-outlook-on-hertz-global-holdings-through-6-analysts">hard to resell</a> at a decent price.
In January, rental car giant Hertz Global Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>) scaled back plans to buy 100,000 EVs after seeing that their resale plummeted much faster than expected, the New York Times<a href="https://www.nytimes.com/2024/07/14/business/electric-vehicles-rental-cars.html?partner=slack&amp;smid=sl-share"> reported.</a> 
A main reason why used EVs lose so much value is because Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) lowered the prices on new models last year to boost sales, the New York Times reported.
This has left many rental car outfits scrambling to resell EVs at deep discounts and apprehensive to start buying more of them.
EV manufacturers have sold 1.4% of their cars and trucks to rental companies so far this year, down from selling 4% of them in 2023, according to S&amp;P Global Mobility. So far this year, that number is just 1.4 percent.
Also Read: <a href="http://What's Going On With Hertz Global Stock Today?">What&#8217;s Going On With Hertz Global Stock Today?</a>
Rental car companies have also had a difficult time renting EVs at a profit because most of them lack charging stations and insurance premiums have increased as many renters have underestimated EVs&#8217; acceleration and gotten into accidents, the New York Times reported.
Meanwhile, some companies found they couldn't get spare parts for EVs as quickly as they could for gasoline cars.
Price Action: Tesla gained 1.78% on Monday to close at $252.64, while Hertz jumped 5.69% to $4.27.
Exchange-traded funds that hold Tesla stock gave mixed reactions on Monday. T-Rex 2X Long Tesla Daily Target ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLT#NASDAQ">TSLT</a>) gained 3.69% to $19.96 at close, while Direxion Daily TSLA Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLL#NASDAQ">TSLL</a>) gained 3.71% at $14.54 and The Meet Kevin Pricing Power ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PP#NYSE">PP</a>) ticked down 0.27% to $31.52. The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) slipped 0.11% to $191.27 and Direxion Daily Cnsmr Discret Bull 3XShrs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WANT#NYSE">WANT</a>) slid 0.34% to $37.92.
ETFs that hold Hertz stock trended upward on Monday. Counterpoint Quantitative Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPAI#NYSE">CPAI</a>) gained 0.033% to $31.78 as Invesco S&amp;P SmallCap 600 Pure Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RZV#NYSE">RZV</a>) edged up 1.13% to $104.18 and SPDR S&amp;P Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTN#NYSE">XTN</a>) inched up 1.68% to $80.44. Global X Guru Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GURU#NYSE">GURU</a>) gained 0.087% to $44.89 and Invesco S&amp;P SmallCap 600 Revenue ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWJ#NYSE">RWJ</a>) increased 1.28% to $41.98.
Read Now: 
<ul>
<li><a href="https://www.benzinga.com/news/24/06/39221144/car-rental-firm-hertz-reportedly-seeks-700m-lifeline-as-ev-strategy-stalls">Car-Rental Firm Hertz Reportedly Seeks $700M Lifeline As EV Strategy Stalls</a></li>
</ul>
Photo: Tesla Model Y, Courtesy of Tesla

Travel

Insurance

CPAI

GURU

TSLA

TSLL

TSLT

WANT

Select Sector SPDR-Consumer Discretionary

Rental Car Companies Back Away From Hard-To-Resell Electric Vehicles

Avian influenza, also known as bird flu, has public health <a href="https://www.benzinga.com/news/24/07/39594907/amid-rapidly-rising-bird-flu-cases-moderna-lands-176m-worth-us-government-contract-for-vaccine">officials on alert</a> after it spread to an unprecedented number of cows in the U.S. this year and led to positive tests of the virus in four U.S. dairy workers so far this year.
A severe variant of the H5N1 strain infected animals ranging from alpacas to house cats worldwide since 2020 and caused lethal outbreaks in commercial poultry, but this is the first year it has infected cows, Reuters reported.
Humans have contracted different bird flu strains in Australia and Mexico, while different H5 subtypes have also shown up in other parts of the world including China and Cambodia.
Most of the human cases have come from exposure to poultry, live poultry markets and dairy cattle, but scientists worry the virus could mutate so it could easily spread between humans and spark a pandemic. The World Health Organization says the risk to people is low at this point, Reuters reported.
The first known bird flu cases happened in Texas in March, and now the virus has infected dairy herds in 12 states. The U.S. Agriculture Department said tests so far reveal that the virus detected in cows is the same H5N1 virus affecting wild birds and commercial poultry flocks.
Also Read: <a href="https://www.benzinga.com/general/biotech/24/06/39213667/first-human-death-from-bird-flu-strain-puts-vaccine-stocks-back-on-the-map">First Human Death From Bird Flu Strain Puts Vaccine Stocks Back On The Map</a>
The four dairy workers who have tested positive for the virus this year had mild symptoms such as conjunctivitis, or pink eye.
Michigan, which has two of the four cases infecting dairy workers, has led the nation in efforts to stop the spread of bird flu and prevent negative impacts to the state&#8217;s dairy industry. 
State restrictions include tracking who comes and goes from farms as Michigan tests more people than any of the 12 states with confirmed cases in cows, according to a Reuters survey of state health departments. 
So far this year, various forms of bird flu have been detected in 21 people worldwide, according to Reuters.
Price Action: Most companies busy developing bird-flu vaccines saw gains on Wednesday. Moderna, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) picked up 1.18% to close at $117.44, while GSK plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSK#NYSE">GSK</a>) slipped 0.12% to $38.56 and Carlisle Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CSL#NYSE">CSL</a>) gained 2.28% to $416.88.
Dairy stocks and agriculture and dairy cattle exchange-traded funds gave mixed reactions. AGCO Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGCO#NYSE">AGCO</a>) gained 0.69% to close at $94.21 on Wednesday as Aemetis, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMTX#NASDAQ">AMTX</a>) declined 3.18% to $3.35 and Balchem Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BCPC#NASDAQ">BCPC</a>) picked up 0.60% to $162.89.
Invesco DB Agriculture Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBA#NYSE">DBA</a>) declined 1.23% on Wednesday to $1.23, while First Trust Dow Jones Select MicroCap Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDM#NYSE">FDM</a>) rose 1.71% to $59.51 and Invesco S&amp;P SmallCap 600 Pure Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RZV#NYSE">RZV</a>) improved 1.32% to $98.
<h4 class="wp-block-heading">Read Now:</h4>
<ul>
<li><a href="https://www.benzinga.com/general/biotech/24/07/39710325/investor-that-backed-moderna-raises-3-6b-for-ai-driven-biotech-ventures">Investor That Backed Moderna Raises $3.6B For AI-driven Biotech Ventures</a></li>
</ul>
Photo: Shutterstock

Health Care

AGCO

AMTX

BCPC

MRNA

Health Officials Keep Close Eye On Bird Flu As It Infects Cows For The First Time

The Greenbrier Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GBX#NYSE">GBX</a>) shares are tumbling today after the company reported worse-than-expected <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/n39665027/greenbrier-reports-third-quarter-results" rel="noreferrer noopener">third-quarter FY24 results</a>.
Revenue declined to $820.2 million from $1.038 billion a year ago and missed the consensus of $928.7 million.
The company&#8217;s lease fleet utilization was around 99%, and fleet size increased by 600 units to 15,200 units.
GBX has secured orders for 6,300 new railcars worth $830 million and delivered 5,400 units in the quarter.&nbsp;
As of May end, the new railcar backlog stood at 29,400 units, with an estimated value of $3.7 billion.
EBITDA came in at $104 million vs $95 million a year ago, with a margin of 13%. EPS of $1.06&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">missed the consensus of $1.15</a>.
As of May 31, cash and equivalents stood at $291.8 million. The company&#8217;s quarterly dividend per share of $0.30 is payable on August 13 to shareholders of record as of July 23.
FY24 Outlook: Greenbrier revised revenue guidance to $3.50 billion-$3.60 billion (vs. $3.50 billion-$3.70 billion earlier), compared <a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38112527/why-rail-transport-company-greenbriers-shares-are-trading-higher-today" rel="noreferrer noopener">to the&nbsp;consensus of $3.56 billion</a>.&nbsp;
The company now expects to deliver 23,500 – 24,000 (vs. 23,500 – 25,000 units earlier), including <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">around 1,400 units in Brazil</a>.
Greenbrier projects capital expenditures of around $150 million in Manufacturing and $15 million in Maintenance Services and sees gross leasing investment of about $340 million in Leasing &amp; Management Services.&nbsp;
The company anticipates proceeds from equipment sales of around $75 million.
Lorie L. Tekorius, CEO and President, said, &#8220;Consolidated gross margin in the mid-teens for a third consecutive quarter drove strong EPS performance. Results reflect our continued focus on efficiencies gained over the last several quarters and execution by the team that extends across the full reach of Greenbrier&#8217;s business.&#8221;&nbsp;
Investors can gain exposure to the stock via&nbsp;First Trust RBA American Industrial Renaissance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIRR#NASDAQ">AIRR</a>) and&nbsp;Invesco S&amp;P Smallcap 600 Pure Value ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RZV#NYSE">RZV</a>).
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39645259/greenbrier-gears-up-for-q3-print-here-are-the-recent-forecast-changes-from-wall-streets-most-accura" rel="noreferrer noopener">Greenbrier Gears Up For Q3 Print; Here Are The Recent Forecast Changes From Wall Street&#8217;s Most Accurate Analysts</a>
Price Action: GBX shares are down 11.3% at $43.07 at the last check Monday.
Read next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38147692/greenbrier-companies-remains-poised-for-positive-momentum-says-analyst" target="_blank" rel="noreferrer noopener">Greenbrier Companies Remains Poised For Positive Momentum, Says Analyst</a></li>
</ul>

Dividends

AIRR

Railcar Giant Greenbrier Faces Setback In Q3 - Can New Railcar Orders Turn the Tide?

The Greenbrier Companies, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GBX#NYSE">GBX</a>) reported the second<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38108676/greenbrier-reports-second-quarter-results" rel="noreferrer noopener">&nbsp;quarter of FY24 results</a>.&nbsp;
Revenue declined to $862.7 million from $1.122 billion a year ago but was above the consensus of $843.3 million.&nbsp;
The company&#8217;s lease fleet utilization was 99%, and fleet size increased by 500 to 14,600 units.
GBX has secured orders for 5,900 new railcars worth $690 million and delivered 5,600 units in the quarter.&nbsp;
As of February 29, 2023, the new railcar backlog stood at 29,200 units with an estimated value of $3.6 billion.
EBITDA came in at $95.0 million, with a margin of 11%. EPS of $1.03&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">topped the consensus of $0.86</a>.
As of February 29, 2024,&nbsp;cash and equivalents stood at $272 million.
Dividend: The company&#8217;s quarterly dividend per share of 30 cents is payable on May 14, 2024, to shareholders of record as of April 23, 2024.
FY24 Outlook: Greenbrier now expects revenue of $3.50 billion – $3.70 billion (vs. $3.40 billion – $3.70 billion earlier) vs.&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36510916/why-rail-transport-company-greenbriers-shares-are-rising-today" rel="noreferrer noopener">consensus of $3.52 billion</a>.&nbsp;
The company expects to deliver 23,500 – 25,000 units (vs. 22,500 – 25,000 units earlier), including around 1,400 units in Brazil.
GBX now projects capital expenditures of around $140 million in Manufacturing and $15 million in Maintenance Services and sees gross leasing investment of about $350 million in Leasing &amp; Management Services.&nbsp;
The company now anticipates proceeds from equipment sales of around $75 million.
Lorie L. Tekorius, CEO and President said, &#8220;Greenbrier&#8217;s broad product lineup, extensive market relationships, supportive customer experience, and deep commercial origination capabilities combine to create our unique leadership position and enable ongoing success.&#8221;
&#8220;These factors provide revenue visibility while supporting our profitable leasing business, which is growing through the disciplined investment in our leased railcar fleet and robust lease renewals.&#8221;
Investors can gain exposure to the stock via&nbsp;First Trust RBA American Industrial Renaissance ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIRR#NASDAQ">AIRR</a>) and&nbsp;Invesco S&amp;P Smallcap 600 Pure Value ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RZV#NYSE">RZV</a>).
Price Action: GBX shares are up 1.47% at $53.17 on the last check Friday.

Why Rail Transport Company Greenbrier's Shares Are Trading Higher Today

The U.S. Supreme Court is scheduled to hear a case on Tuesday concerning the funding structure of the Consumer Financial Protection Bureau (CFPB), the agency created following the 2008 financial crisis to protect consumers from predatory lending and <a href="https://www.benzinga.com/topic/cfpb">other deceptive practices</a>.
Central to the case, named CFPB v. Community Financial Services Association of America, is the constitutionality of the CFPB&#8217;s funding. Currently, the CFPB draws its annual funding from the Federal Reserve rather than from budgets approved by Congress. A lower court — the 5th U.S. Circuit Court of Appeals — ruled in October of last year that the CFPB's funding mechanism violates the Constitution's appropriations clause, which bestows Congress with the power of the purse.
Payday lenders, represented by trade groups, started the challenge against the CFPB, according to a Reuters report. They targeted a 2017 CFPB rule that prohibited lenders from charging a borrower&#8217;s bank account after two consecutive failed attempts due to insufficient funds. Read also: <a href="https://www.benzinga.com/23/10/35065240/us-job-openings-surge-by-690-000-in-august-defy-expectations">US Job Openings Surge By 690,000 In August, Defy Expectations</a>
If the Supreme Court sides with the trade group here, the implications for consumers are palpable.
Any regulations the CFPB has issued over the past 12 years — covering areas like credit cards, mortgages, and debt collection — could be nullified. More to that, the funding model of other regulators, like the Federal Reserve, and programs like Social Security could come under scrutiny.
A judgment in the case could be rendered by June of next year.
While the case is in its early stages, investors should keep an eye out for stocks exposed to the payday loan sector, including: Firstcash Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FCFS#NASDAQ">FCFS</a>), Oppfi Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OPFI#NYSE">OPFI</a>), World Acceptance Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WRLD#NASDAQ">WRLD</a>), and EZCORP Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EZPW#NASDAQ">EZPW</a>).
ETFs like First Trust Multi-Manager Sm Cap Opportunities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMSC#NYSE">MMSC</a>), Invesco S&amp;P SmallCap 600 Pure Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RZV#NYSE">RZV</a>), and Invesco Dorsey Wright Financial Momentum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFI#NASDAQ">PFI</a>) that have exposure to payday loans may be impacted. Read next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/10/35062922/higher-rates-lower-leverage-growth-stocks-to-struggle-while-ai-offers-hope-goldman-">Higher Rates, Lower Leverage: Growth Stocks To Struggle While AI Offers Hope, Goldman Sachs Analysts Say</a>
Photo: Shutterstock

Government

Regulations

Sector ETFs

Specialty ETFs

Topics

EZPW

FCFS

MMSC

OPFI

PowerShares Dynamic Financial Sector Portfolio

WRLD

Payday Lenders Challenge Financial Consumer Watchdog's Budget Structure In Supreme Court: What It Means For Your Wallet

Three value investing <a href="https://www.benzinga.com/money/best-etfs/">ETFs</a> worth considering now offer opportunities for exposure to small-cap stocks that have the potential to outperform large- and mid-cap funds.
The three value investing ETFs worth considering give investors ways to zero in on the book value-to-price ratio, earnings-to-price ratio and sales-to-price ratio in the first fund, momentum with the second one and dividends with the third. Small-cap value stocks typically grow more slowly than average companies, but they still can achieve strong returns and offer reduced risk compared to similar-sized growth stocks.
<h3>Invesco S&amp;P SmallCap 600 Pure Value ETF (RZV)</h3>
The Invesco S&amp;P SmallCap 600 Pure Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rzv#NYSE">RZV</a>) tracks a fundamentally weighted index of U.S.-listed small-cap value companies. RZV provides a unique take on small- and micro-cap value exposure by focusing on undervalued stocks represented in the index it tracks.
Investors should beware that the fund&rsquo;s holdings of various sizes and sectors heighten its market risk. As a result, investors interested in this high-beta play on small-cap value stocks also should expect higher transaction costs than the norm due to a modest daily volume (the number of total shares traded in each day for one stock) and sizable spreads between the bid and ask prices.
<img src="https://lh6.googleusercontent.com/FQ7P5VHWQGh2EF1cekKRu6pC8JX1bTCeY1WE0j1FsbAAnGszS1r5jpnWK0MOCVM_9HRk06OcPSlUP_2iWNiNBQdQqj5IA8dAquSBomyHkjRHWMXZHL4OBXcTaFR9ZtU6XUE-gG2E70Aakc-g8Q" style="height:284px; width:460px" />
Chart Courtesy of StockCharts.com
Even so, RZV replicates its index efficiently. The fund invests at least 90% of its total assets in securities that comprise the Index, which measures the performance of small-cap equities that exhibit strong value characteristics in the S&amp;P SmallCap 600 Pure Value Index.
This fund performed weakly in 2017 and struggled in 2018 as its total return rose 1.24% in 2017 and plunged 19.65% in 2018, according to Morningstar. Year to date, the fund&rsquo;s return has risen 7.64%. The variation in its returns shows the fund&rsquo;s volatility and the need for investors to be comfortable enduring such wide swings.
RZV&rsquo;s value is measured by risk factors such as a stock&rsquo;s book value-to-price ratio, earnings-to-price ratio and sales-to-price ratio. The fund and the Index are rebalanced annually.
The top RZV sectors include consumer cyclical, basic materials, industrials, technology and consumer defensive. Among the fund&rsquo;s top 10 holdings, accounting for 19% of its portfolio, are Sonic Automotive Class A (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sah#NYSE">SAH</a>), William Lyon Homes (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wlh#NYSE">WLH</a>), Group 1 Automotive Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gpi#NYSE">GPI</a>), Ultra Clean Holdings Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/uctt#NASDAQ">UCTT</a>), Griffon Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gff#NYSE">GFF</a>), M/I Homes Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mho#NYSE">MHO</a>), Hibbett Sports Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hibb#NASDAQ">HIBB</a>), Meritage Homes Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mth#NYSE">MTH</a>), Century Communities Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ccs#NYSE">CCS</a>) and GMS Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gms#NYSE">GMS</a>).
RZV has $178.9 million in net assets and a 0.69% spread, which is the difference between the bid and ask prices of a security. The fund also has an expense ratio of 0.35%, so it&#39;s relatively cheap to hold in comparison to other exchange-traded funds.
In short, this ETF offers a distinct model for investors looking to add small-cap stocks to their portfolio. It focuses on securities that display strong value characteristics and uses an efficient index. But due to the relative volatility of small-cap stocks, investors should, as always, perform their own due diligence to decide whether this fund is suitable for their portfolios and risk tolerance.
<h3>Invesco S&amp;P SmallCap Value with Momentum ETF (XSVM)</h3>
The Invesco S&amp;P SmallCap Value with Momentum ETF (AMEX:XSVM), formerly the Invesco Russell 2000 Pure Value ETF&nbsp;is based on the S&amp;P 600 High Momentum Value Index and chooses its stock holdings from among the listings that have the highest value and momentum scores in the index. XSVM will invest at least 90% of its total assets in the component securities that comprise the index.
While the fund changed indexes in May 2015 and again in June 2019, it remains one of the few &ldquo;pure&rdquo; value ETFs in the small-cap space. At one point in its history, this ETF only held about $70 million in assets. Low assets led to a low trading volume that raised transaction costs at the retail level. Even so, the fund has been able to offer a valid alternative to traditional value fund competitors to attract investors.
The top XSVM sectors include consumer cyclicals, financial services and industrials. The fund&rsquo;s top 10 holdings, composing 18% of the portfolio, are Vitamin Shoppe Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vsi#NYSE">VSI</a>), Sonic Automotive Inc. Class A (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sah#NYSE">SAH</a>), Era Group Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/era#NYSE">ERA</a>), SpartanNash Co. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sptn#NASDAQ">SPTN</a>), INTL FCStone Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/intl#NASDAQ">INTL</a>), Veritiv Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vrtv#NYSE">VRTV</a>), Office Depot Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/odp#NASDAQ">ODP</a>), Seneca Foods Corp. Class A (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/senea#NASDAQ">SENEA</a>), Group 1 Automotive Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gpi#NYSE">GPI</a>) and TTM Technologies Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ttmi#NASDAQ">TTMI</a>).
XSVM has $72.5 million in net assets and a spread of 0.44%, which shows the difference between its bid and ask prices. The fund has a 1.98% yield and a year-to-date return of 13.01%. The ETF also has an expense ratio of 0.39%, so it&#39;s relatively cheap to hold in comparison to other exchange-traded funds.
<img src="https://lh4.googleusercontent.com/QNZo3cxs8RMq_gcn6eR633jR-0mBJ6wiYYXyrV_AdXp2mW-VXqNKyubcQsjlF661IFL5hTyx3bA4NC4ZsyEpTvwFwal0w00xvp8gbGePFEG8eH1HOBz9b68KC0CELSVMnWM1SQRdcLkPSdG_ng" style="height:284px; width:460px" />
Credit goes to Stockcharts.com
In sum, this ETF presents a viable option for investors seeking to add a small-cap fund to their holdings, since it&#39;s one of the few possibilities for investors interested in small-cap, &ldquo;pure&rdquo; value funds. Investors should exercise their own due diligence in assessing whether the fund is a worthwhile investment.
Read our <a href="https://www.stockinvestor.com/privacy-policy/">Privacy Policy</a>
<h3>ProShares Russell 2000 Dividend Growers ETF (SMDV)</h3>
The ProShares Russell 2000 Dividend Growers ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/smdv#NYSE">SMDV</a>) tracks an index of U.S. small-cap stocks with a 10-year record of consecutively increasing their dividends.
The stocks are equally weighted in the fund, which seeks companies that are growing their dividends. The fund can contain as few as 40 stocks, but it seeks exposure across all market sectors, as long as no single sector comprises more than 30% of the index weight.
SMDV slid 0.60% in 2018 and has jumped 9.03% in 2019.
The investment thesis of this ETF is that small stocks with a proven record of increasing dividends deliver stable growth. Thus, the fact that the fund culls only about 50 names from a broad 2,000-stock universe indicates how few make the cut. SMDV competes most directly with WisdomTree&rsquo;s DGRS (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dgrs#NASDAQ">DGRS</a>). However, SMDV strictly invests in stocks with growing dividends, while DGRS holds dividend-paying stocks aimed at quality and growth.
The top SMDV sectors include utilities, industrials, financial services, consumer staples and basic materials. Among the fund&rsquo;s top 10 holdings, encompassing 17% of the portfolio, are Group 1 Automotive Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gpi#NYSE">GPI</a>), Gorman-Rupp Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/grc#NYSE">GRC</a>), Matthews International Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/matw#NASDAQ">MATW</a>), Hillenbrand Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hi#NYSE">HI</a>), American Equity Investment Life Holding Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ael#NYSE">AEL</a>), Inter Parfums Inc. (EPA: ITP), McGrath RentCorp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mgrc#NASDAQ">MGRC</a>), Middlesex Water Co. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msex#NASDAQ">MSEX</a>), H.B. Fuller Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ful#NYSE">FUL</a>) and Universal Health Realty Income Trust (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uht#NYSE">UHT</a>).
<img src="https://lh3.googleusercontent.com/A7QJCaSvc3ngq6kjH49Tea9TAPIdyZXNnN2hYkIq9xBrm8Ny-v1OohJfCAKrKO3xbZtxl67fb5-rIbqxIKoDQUeOihTTm4K51eBK8RBw0vd5d8TGMuJPY3ga29z_MjbRdmSTTug7aodjE6xzjA" style="height:284px; width:460px" />
Credit goes to Stockcharts.com
SMDV has $719.4 million in net assets, a 2.01% yield and a spread of 0.10%, which indicates the difference between its bid and ask prices. The fund also has an expense ratio of 0.40%, so it&#39;s relatively inexpensive to hold compared to other specialized ETFs.
In short, the fund targets a narrow slice of the small-cap market &mdash; currently with a huge bias toward utilities &mdash; rather than broad coverage of the entire small-cap space. If you are interested in Russell 2000 equities that consistently pay rising dividends, consider SMDV as it is the only ETF I know that tracks the Russell 2000 Dividend Growth Index. However, investors should, as always, perform their due diligence to decide whether SMDV is a worthwhile investment.
Small-cap funds are more volatile than their large- and mid-cap counterparts but they also offer potential for outsized returns. For investors willing to take additional risk but still gain the benefits of value investing, these three funds are worth considering.
&nbsp;
Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. His books include co-authoring, &ldquo;Billion Dollar Green: Profit from the Eco Revolution,&rdquo; and &ldquo;The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.&rdquo; He&rsquo;s also ghostwritten many books and articles, as well as edited content for some of the investment industry&rsquo;s biggest luminaries. <a href="https://jimwoodsinvesting.stockinvestor.com/">Read more about Jim Woods</a>.

Broad U.S. Equity ETFs

Small Cap Analysis

Technicals

DGRS

HIBB

INTL

MATW

MGRC

MSEX

SENEA

SMDV

SPTN

TTMI

UCTT

VRTV

XSVM

3 Value Investing ETFs Worth Considering

It may be easy to attribute the recent rally in small-cap stocks and exchange traded funds on growth and momentum names, but some evidence suggests the value factor is alive and well with small-caps, too.
The Invesco S&amp;P SmallCap 600 Pure Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rzv#NYSE">RZV</a>), for example, was one of just a handful of ETFs to hit record highs last Friday.
<h3>What Happened</h3>
If RZV&#39;s name or ticker ring a bell for some investors, it&#39;s with good reason. The ETF is known for being <a href="https://www.benzinga.com/trading-ideas/long-ideas/18/03/11317451/a-value-etf-thats-returned-785-during-the-bull-market">one of the best-performing</a> funds, regardless of asset class, during the current bull market in U.S. stocks.
RZV is bolstering that reputation this year with a gain of 11 percent, putting it 70 basis points ahead of the Russell 2000 Index. RZV, which turned 12 years old earlier this year, tracks the S&amp;P SmallCap 600 Pure Value Index.
<h3>Why It&#39;s Important</h3>
The fund&#39;s underlying index &ldquo;measures the performance of securities that exhibit strong value characteristics in the S&amp;P SmallCap 600 Index. Value is measured by the following risk factors: book value-to-price ratio, earnings-to-price ratio and sales-to-price ratio,&rdquo; <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=RZV">according to Invesco</a>.
Underscoring the point that value is working with small-caps this year while continuing to falter with large-caps, RZV is up 11 percent while the large-cap S&amp;P 500 Value Index is lower by 1.7 percent. Over the past two years, RZV is up 43.4 percent, an advantage of more than 1,700 basis points over the S&amp;P 500 Value Index.
<h3>What&#39;s Next</h3>
The Invesco fund holds 165 stocks, a smaller roster than what&#39;s found on conventional broad-based small-cap funds and one that confirms that point that many smaller stocks aren&#39;t considered value names. Although RZV is a value fund, the ETF allocates over 35 percent of its weight to consumer discretionary stocks, a sector not often considered a value destination.
That&#39;s&nbsp;more than double the ETF&#39;s second-largest sector weight, industrials. Many of RZV&#39;s consumer discretionary holdings are brick-and-mortar retailers, indicating the ETF is levered to rebounds in those stocks, but also potentially vulnerable to store closures and slumping retail sales, should those scenarios appear.
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/06/11918865/russell-1000-etfs-to-increase-in-health-care-tech-expos">Russell 1000 ETFs After The Reconstitution</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/06/11918867/a-global-macro-etf-of-etfs-courtesy-of-jim-rogers">A New Global Macro ETF</a>

Long Ideas

Where Value Stocks Are Working

The dollar is gaining strength and recently touched a multimonth high against a basket of rival developed market currencies. Conventional wisdom dictates that large-cap companies, many of which generate substantial portions of their revenue overseas, are vulnerable to a stronger dollar.
Conversely, small-cap stocks and exchange traded funds can be sturdy as the greenback rises, as smaller companies are usually more focused on the domestic economy.&nbsp;
&ldquo;The <a href="https://us.spindices.com/indices/equity/sp-500">S&amp;P 500</a> has 70.9 percent of revenue from the U.S.,&rdquo; S&amp;P Dow Jones Indices said&nbsp;<a href="http://www.indexologyblog.com/2018/05/13/heres-how-a-rising-dollar-impacts-stocks/">in a recent note</a>. &ldquo;That is less than the 73.3 percent of U.S. revenue in the <a href="https://us.spindices.com/indices/equity/sp-400">S&amp;P MidCap 400</a> but is much less than the 78.8 percent of U.S. revenue generated in the <a href="https://www.barrons.com/articles/a-tale-of-two-indexes-1516896321">S&amp;P SmallCap 600</a>.&rdquo;
<h3>
	What Happened</h3>
Data suggest that within the small-cap universe, growth and value stocks generate significant portions of their revenue on a domestic basis. For the S&amp;P SmallCap 600 Growth Index, the domestic revenue figure is 80.6 percent while it is 78.6 percent for the S&amp;P SmallCap 600 Value Index, according to S&amp;P Dow Jones Indices.
The PowerShares S&amp;P SmallCap 600 Pure Growth Portfolio (NYSE: <a class="ticker" href="/stock/rzg#NYSE">RZG</a>) tracks the S&amp;P SmallCap 600 Pure Growth Index, which measures sales growth, earnings change vs. price and momentum factors.
RZG&#39;s value counterpart is the PowerShares S&amp;P SmallCap 600 Pure Value Portfolio (NYSE: <a class="ticker" href="/stock/rzv#NYSE">RZV</a>). RZV&#39;s 165 holdings, which have an average market value of $914 million, are evaluated based on book value-to-price ratio, earnings-to-price ratio and sales-to-price ratio.
<h3>
	Why It&#39;s Important</h3>
The three sectors that generate the largest percentages of their revenue on a domestic basis &mdash; telecommunications, utilities, and real estate &mdash; are usually lightly represented in small-cap funds. Some small-cap funds are heavy on three sectors that depend on the domestic economy for large chunks of their sales: health care, financial services and consumer discretionary.
RZV, the small-cap value ETF, allocates nearly 33 percent of its weight to consumer discretionary stocks, by far its largest sector weight. Financial and health care names combine for 16.43 percent of the fund&#39;s weight.
RZG, the small-cap growth fund, devotes almost 28 percent of its roster to health care names and 14.69 percent to consumer cyclical stocks.
<h3>
	What&#39;s Next</h3>
&quot;The S&amp;P SmallCap 600 is 3.1 times more sensitive to the falling dollar than a rising one but does better than large- or mid-size companies when the dollar rises,&rdquo; according to S&amp;P Dow Jones.&nbsp;
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/05/11692135/a-buz-worthy-etf">Much Abuzz With This ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/05/11681892/a-surging-software-etf">A Nifty Software ETF</a>

Rydex ETF Trust S&P Smallcap 600 Pure Growth ETF

Small-Cap ETFs For A Stronger Dollar

It may be stating the obvious, but small-cap stocks and related exchange traded funds perform well during bull markets. The combination of the value and small size factors is potent over long holding periods, according to historical data.&nbsp;
With that second point in mind, it may not be surprising that the best-performing small-cap ETF during the current bull market is also a value fund. The honor of the top small-cap ETF during this current market belongs to the Guggenheim S&amp;P SmallCap 600 Pure Value ETF (NYSE: <a class="ticker" href="/stock/rzv#NYSE">RZV</a>).
RZV follows the S&amp;P SmallCap 600 Pure Value Index. That benchmark &ldquo;measures value in separate dimensions across three risk factors: book value to price ratio, earnings to price ratio and sales to price ratio. The Pure Style Value Index Series only includes those stocks from the parent index that exhibit strong value characteristics and weights them by style score,&rdquo; <a href="https://www.guggenheiminvestments.com/etf/fund/rzv-guggenheim-sp-smallcap-600-pure-value-etf">according to Guggenheim</a>.
<h3>
	RZV&#39;s Run Of Dominance</h3>
The current bull market began March 10, 2009. From that day through March 5, 2018, RZV has put together average annualized returns of 25.5 percent, good for a cumulative return of over 670 percent, according to Morningstar.
In other words, a $10,000 investment in RZV on March 10, 2009 would have been worth more than $77,000 on March 5, 2018. To put RZV&#39;s bull market dominance among small-cap ETFs into context, a $10,000 investment in the second-best small-cap ETF on March 10, 2009 would have turned into about $67,000 today.
Part of RZV&#39;s long-term advantage lies in the fact that it only holds value stocks, whereas some funds advertised as value plays can hold growth and/or blended stocks. That is good news for RZV investors when small-cap value is in favor, but puts those investors at risk of underperformance when small-cap growth is more in favor.
<h3>
	More RZV Facts</h3>
Small-cap value stocks are not always less volatile than broader small stock benchmarks. RZV&#39;s standard deviation of 19.62 percent is significantly higher than the 13.93 percent found in the Russell 2000 Index.
RZV, which celebrated its 12th birthday earlier this month, holds over 160 stocks. The ETF allocates about 32 percent of its weight to consumer discretionary stocks and a combined 30 percent of its weight to industrial and technology names.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/03/11325077/where-to-find-bond-etfs-that-are-going-up">A Strong EM Bond ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/03/11317302/positioning-for-a-commodities-rebound-with-an-etf">Prep For A Commodities Rally</a>

This Is The Bull Market's Best Small-Cap ETF

March 10&nbsp;is right around the corner, meaning the next anniversary of one of the longest bull markets in U.S. history is rapidly approaching. Plenty of exchange traded funds have offered staggering returns since March 10, 2009.
The two best-performing non-leveraged ETFs since the start of the bull market are industry funds &mdash; both are internet ETFs &mdash; but numerous broad market ETFs have delivered stellar returns as well. The leader of that pack is the Guggenheim S&amp;P 500 Pure Value ETF (NYSE: <a class="ticker" href="/stock/rpv#NYSE">RPV</a>).
RPV, which turned 12 earlier this month, tracks the S&amp;P 500 Pure Style Value Index. The index &ldquo;measures value in separate dimensions across three risk factors: book value to price ratio, earnings to price ratio and sales to price ratio,&rdquo; <a href="https://www.guggenheiminvestments.com/etf/fund/rpv-guggenheim-sp-500-pure-value-etf">according to Guggenheim</a>.
<h3>
	Jaw-Dropping Returns</h3>
From the start of the current bull market through March 5, 2018, RPV delivered average annualized gains of 27.47 percent, according to Morningstar data. Over that period, RPV&#39;s cumulative return is a stunning 785.72 percent.
Of the top 10 non-leveraged ETFs over the course of this bull market, eight are sector or industry funds. RPV and its stablemate and small-cap counterpart, the Guggenheim S&amp;P SmallCap 600 Pure Value ETF (NYSE: <a class="ticker" href="/stock/rzv#NYSE">RZV</a>), are the only two broad market funds in the top 10.
During the bull market, RZV has delivered average annualized returns of 25.5 percent. RZV&#39;s cumulative return over that period is 681.13 percent, good for the best showing among all small-cap ETFs. RZV follows the S&amp;P Small Cap 600 Pure Value Index, which uses a similar methodology as RPV&#39;s underlying benchmark.
<h3>
	RPV Today</h3>
RPV is home to 114 stocks. The ETF has a price-to-book ratio of 1.40 and a price-to-earnings ratio of 13.02. Those are discounts to the S&amp;P 500, but RPV&#39;s standard deviation of 12.87 percent is above that of the S&amp;P 500.
The $902.1-million RPV allocates nearly 29 percent of its weight to the financial services sector and, in a surprise for a value ETF, the fund devotes 20.5 percent of its weight to the consumer discretionary sector. Only four of RPV&#39;s holdings command weights above 2 percent.
A $10,000 investment in RPV on March 10, 2009 turned into $88,572 on March 5, 2018, according to Morningstar data.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/03/11308322/vanguard-shifts-indexes-on-3-etfs-ahead-of-sector-changes">Vanguard Tinkering With Sector ETFs</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/03/11308344/powell-prompted-inflows-to-financial-services-etfs">Flows To Bank ETFs Pickup</a>

A Value ETF That's Returned 785% During The Bull Market

House Republicans approved the biggest U.S. tax overhaul in three decades with some tweaks with the aim of making America more competitive. The plan will slash the corporate income tax rates from 35% to 20% as proposed but reduce the number of individual income tax brackets from seven to four instead of three. The bill would limit state, local and mortgage interest deduction, eliminate personal exemption, and nearly double the standard deduction.
	The tax reform plan was passed with 227 votes in favor and 205 against. The step marks a significant achievement for the Trump administration and his promise to deliver historic tax cuts for Americans by the end of the year. Additionally, tax reform is the most prestigious legislative move for Republicans to enter into 2018 midterm elections (read: <a href="https://www.zacks.com/stock/news/281708/winners-amp-loser-of-trumps-tax-reform">Winners &amp; Loser of Trump&#39;s Tax Reform</a>).
	This has led to a huge rally in the broad stock market with small caps leading the way higher. The Russell 2000 index climbed 1.6% on Nov 17, leading to year-to-date returns of 9.6%. This is especially true as small caps are the biggest beneficiaries of the tax cuts relative to big companies. Companies on the Russell 2000 pay a median effective tax rate of 31.9% while the larger, multi-national companies on the S&amp;P 500 pay a median effective tax rate of 28%, according to Thomson Reuters data. The median tax rate for the 30 mega-cap stocks on the Dow Jones Industrial Average is even low at 23.8%.
	ETF Impact
	The surge also sent the small-cap ETF space into the green territory on Nov 17. In particular, PowerShares DWA SmallCap Momentum Portfolio DWAS, Guggenheim S&amp;P SmallCap 600 Pure Value ETF RZV and WisdomTree US SmallCap Dividend ETF DES stole the show. These funds gained nearly 2% on the day (see: <a href="https://www.zacks.com/funds/etfs/etf-categories/Small-Cap-ETFs-3">all the Small Cap ETFs here</a>).
	Below we profile these ETFs in detail and discuss some of the specifics behind their recent rally.
	DWAS
	This ETF offers exposure to the small-cap segment of the broad U.S. stock market. It follows the popular Dorsey, Wright &amp; Associates proprietary selection methodology that is designed to identify small-cap firms with positive relative strength characteristics in an attempt to follow companies with strong forward momentum. The product holds a basket of 200 stocks with none holding more than 1.93% of assets. From a sector look, healthcare takes the top spot with 25.8% share while financials, industrials, and information technology, round off the next three spots. The fund has $219.9 million in AUM and charges investors 60 bps a year in fees (read: <a href="https://www.zacks.com/stock/news/277572/small-cap-etf-dwas-hits-new-52week-high">Small Cap ETF Hits New 52-Week High</a>).
	RZV
	This fund provides exposure to the pure value segment of the small-cap market by tracking the S&amp;P SmallCap 600 Pure Value Index. It holds a well-diversified portfolio of 156 stocks with each security holding less than 2% of assets. In terms of sector exposure, consumer discretionary takes the largest share at 29.2% while industrials, financials and information technology round off the next three spots. It has been able to manage $178.4 million in its asset and charges 35 bps in fees per year from investors. RZV has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: <a href="https://www.zacks.com/stock/news/276770/small-cap-etfs-amp-stocks-crushing-russell-2000">Small Cap ETFs &amp; Stocks Crushing Russell 2000</a>).
	DES
	This ETF offers exposure to the dividend-paying small-cap companies in the U.S. equity market by tracking the WisdomTree U.S. SmallCap Dividend Index. Holding 655 stocks in its basket, it is widely spread out across components with each security holding less than 2% share. Consumer discretionary, industrials, real estate and financials are the top four sectors accounting for a double-digit exposure each. The product has amassed nearly $2 billion in its asset base and charges 38 bps in annual fees. It has a Zacks ETF Rank #3 with a Medium risk outlook.
	What Lies Ahead?
	Though the tax bill was passed by the House, it needs to get through Senate, which passed the $1.4 trillion budget resolution last month, paving the way for the approval of the tax bill. Given that the tax reform will come into play by the end of the year or early next year, small caps will continue to enjoy the rally. Additionally, increasing activities in the economy will fuel growth in these pint-sized stocks.
	This is because growth in the U.S. economy has been accelerating with GDP expanding 3% year over year in the third quarter, following 3.1% growth in the second quarter. This represents the best back-to-back quarters of at least 3% growth since 2014. Unemployment dropped to the lowest level since December 2000 to 4.1%.
	Americans also have an optimistic view of the economy with confidence hitting the highest level in almost 17 years. The Conference Board consumer confidence index jumped to 125.9 in October from a revised 120.6 in September. Meanwhile, consumer spending, which accounts for more than two-thirds of U.S. economic activity, recorded its biggest increase in more than eight years in September.
	Against such a backdrop, small-cap stocks led the way higher as these are closely tied to the U.S. economy and do not have much exposure to the international market. These pint-sized stocks generate most of their revenues from the domestic market and generally outperform on improving American economic health (read: <a href="https://www.zacks.com/stock/news/279948/5-biggest-etf-winners-of-trump-trade-resurgence">5 Biggest ETF Winners of Trump Trade Resurgence</a>).
	Moreover, after hiking rates in December 2015 and December 2016, the Fed has raised interest rates two times this year and is on track for another liftoff in December. This indicates a stronger economy and propels small-cap stocks higher.
	Want key ETF info delivered straight to your inbox?
	Zacks&#39; free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. <a href="https://www.zacks.com/registration/newsletter/?type=FND&amp;ADID=Zcom_commentary_fundnewsletter_moneysense_ECD_ETF">Get it free &gt;&gt;</a>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. <a href="http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-283390" target="_blank">Click to get this free report</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=DES&amp;split=1&amp;cid=CS-BENZ-FT-283390">WISTR-US SC DV (ETF:DES): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=RZV&amp;split=1&amp;cid=CS-BENZ-FT-283390">GUGG-SP 600 PV (ETF:RZV): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=DWAS&amp;split=1&amp;cid=CS-BENZ-FT-283390">PWRSH-DWA SC MO (ETF:DWAS): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/stock/news/283390/small-cap-etfs-surge-as-house-passes-tax-bill?cid=CS-BENZ-FT-283390">To read this article on Zacks.com click here.</a> 
	&nbsp; 
	<a href="http://www.zacks.com/">Zacks Investment Research</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&amp;ADID=ZACKS_PFP_7BEST_ETF">Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report</a>

WisdomTree Trust WisdomTree SmallCap Dividend

DWAS

Small Cap ETFs Surge As House Passes Tax Bill

The current bull market in U.S. stocks, one of the longest such runs in U.S. equity market history, celebrates its eighth anniversary later this week. That is sure to prompt to some review of the best-performing stocks and exchange-traded funds over that stretch.
<h3>Non-Leveraged ETFs And RPV</h3>
Among non-leveraged ETFs, the <a href="https://www.benzinga.com/trading-ideas/long-ideas/16/03/7767189/a-value-etf-that-merits-further-examination">champion of the current bull market</a> is the Guggenheim S&amp;P 500 Pure Value ETF (NYSE: <a class="ticker" href="/stock/rpv#NYSE">RPV</a>). RPV tracks the S&amp;P 500 Pure Value Index and holds 115 stocks, or fewer than a quarter of the stocks found in the traditional S&amp;P 500.
Since the start of the current bull market, RPV has produced average annualized returns of 29.5 percent and a cumulative return of 685.3 percent, according to Morningstar data. A $10,000 investment in RPV on March 10, 2009 would be worth almost $78,540 today.
RPV, which is home to $1.06 billion in assets under management, allocates nearly a third of its weight to financial services stocks. However, RPV&#39;s weight to energy stocks, another sector that is often a staple of value ETFs, is just 6.5 percent, making that sector RPV&#39;s seventh-largest sector weight. After financials, RPV devotes almost 29 percent of its lineup to consumer discretionary and healthcare stocks.
<h3>The Runner Up</h3>
The Guggenheim S&amp;P SmallCap 600 Pure Value ETF (NYSE: <a class="ticker" href="/stock/rzv#NYSE">RZV</a>) is the second-best non-leveraged ETF since the start of the current bull market. Over that time, RZV has delivered average annualized returns of just under 29 percent and a cumulative return of 659.5 percent, according to Morningstar data.
RZV tracks the S&amp;P SmallCap 600 Pure Value Index. Though that benchmark is an offshoot of the widely followed S&amp;P SmallCap 600 Index, RZV holds just 151 stocks, <a href="http://gi.guggenheiminvestments.com/products/etf/details?productId=126">according to issuer data</a>.
S&amp;P measures value stocks &ldquo;using three factors: the ratios of book value, earnings, and sales to price. S&amp;P Pure Value Indices include only those components of the parent index that exhibit strong value characteristics, and weights them by value score,&rdquo; <a href="http://us.spindices.com/indices/equity/sp-smallcap-600-pure-value">according to the index provider</a>.
A $10,000 investment in RZV on March 10, 2009 would be worth almost $76,000 today. Five of the 10 best-performing non-leveraged ETFs since the start of the <a href="https://www.benzinga.com/trading-ideas/long-ideas/16/11/8751464/a-small-cap-etf-is-the-champion-of-the-bull-market">current bull market are Guggenheim ETFs</a>, more than any other issuer.
Related Link: <a href="https://www.benzinga.com/trading-ideas/long-ideas/17/02/8881247/the-emerging-markets-etf-thats-outperforming-its-peers">The Emerging Markets ETF That's Outperforming Its Peers</a>
Related Link: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/17/02/9060065/trump-cheers-the-markets-bull-run-but-how-optimistic-are-we">Trump Cheers The Market's Bull Run, But How Optimistic Are We?</a>

An ETF Star Of The Bull Market

With any luck, the current bull market will celebrate its ninth anniversary in March 2017. A wide array of non-leveraged exchange traded funds have posted stellar returns since March 2009, but among broader market equity funds, small- and mid-cap funds have generated particularly breathtaking returns.

	Of the many small-cap ETFs that have delivered boffo performances since the start of the current bull market, the Guggenheim S&amp;P SmallCap 600 Pure Value ETF (NYSE: <a class="ticker" href="/stock/rzv#NYSE">RZV</a>) takes the cake. Actually, of any since the start of this bull market, the Guggenheim S&amp;P SmallCap 600 Pure Value ETF is the best performer.

	As of November 25, RZV had generated an average annualized return of 30.4 percent since March 9, 2009, according to <a href="http://www.morningstar.com/">Morningstar</a>. That&#39;s good for a cumulative return of nearly 676 percent, or turning a $10,000 investment in RZV on March 9, 2009 into almost $77,600 as of November 25, 2016.

	For all the talk about value factor being a laggard in recent years, RZV certainly somewhat refutes that notion. The same goes for the Guggenheim S&amp;P 500 Pure Value ETF (NYSE: <a class="ticker" href="/stock/rpv#NYSE">RPV</a>), which is the second-best non-leveraged ETF since the birth of the current bull market. A $10,000 investment in RPV on March 9, 2009 would have been worth nearly $73,500 on November 25.

	RZV tracks the S&amp;P SmallCap 600 Pure Value Index. Though that benchmark is an offshoot of the widely followed S&amp;P SmallCap 600 Index, RZV holds just 151 stocks, <a href="http://gi.guggenheiminvestments.com/products/etf/details?productId=126">according to issuer data</a>.

	S&amp;P measures value stocks &ldquo;using three factors: the ratios of book value, earnings, and sales to price.&nbsp;S&amp;P Pure Value Indices include only those components of the parent index that exhibit strong value characteristics, and weights them by value score,&rdquo; <a href="http://us.spindices.com/indices/equity/sp-smallcap-600-pure-value">according to the index provider</a>.

	RZV allocates a combined 45 percent of its weight to industrial and consumer discretionary stocks with materials and technology names combining for another 24 percent.

	RZV&#39;s growth counterpart, the Guggenheim S&amp;P SmallCap 600 Pure Growth ETF (NYSE: <a class="ticker" href="/stock/rzg#NYSE">RZG</a>), has been a fine bull market performer in its own right.

	During the current bull market, RZG has delivered average annualized returns of almost 24.3 percent, turning a $10,000 investment on March 9, 2009 into more than $53,400 on Nov. 25, according to Morningstar data.

	RZG, home to nearly $170 million in assets under management, follows the S&amp;P SmallCap 600 Pure Growth Index.

A Small-Cap ETF Is The Champion Of The Bull Market

Arguably, depending on one&#39;s regional preferences, the greatest rapper of all-time died on March 9, 1997. What cannot be debated is that one of the worst bear markets in stocks died on March 9, 2010. The subsequent bull market, now seven years old, has been a boon for the growth of the exchange-traded funds industry.
In terms of capital appreciation, however, no non-leveraged ETF can keep up with the Guggenheim Invest S&amp;P 500 Pure Value ETF (NYSE: <a class="ticker" href="/stock/rpv#NYSE">RPV</a>) since the start of the current bull market.
<h3>Honing In On RPV</h3>
From March 10, 2009, through March 8, 2016, RPV returned an astounding 521.2 percent, good for annualized returns of nearly 30 percent, according to Morningstar data. Over that period, RPV turned a $10,000 investment into more than $62,100.
RPV is part of six-ETF suite of pure style ETFs issued by Guggenheim. All six of those ETFs rank among the top 54 non-leveraged ETFs since the birth of the current bull market.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/03/7314379/happy-birthday-bull-market-youre-7-years-old">Happy Birthday, Bull Market: You're 7 Years Old</a></bzrelatedlink>
RPV, home to nearly $694 million in assets under management and a five-star Morningstar rating, holds 114 stocks. Nearly a quarter of those hail from the financial services sector while a third of RPV&#39;s combined weight is allocated to consumer discretionary and utilities names.
<h3>Small-Cap Equivalent To RPV</h3>
RPV has a small-cap equivalent, the Rydex S&amp;P SmallCap 600 Pure Value ETF (NYSE: <a class="ticker" href="/stock/rzv#NYSE">RZV</a>). It is probably not a coincidence that RZV is the second best non-leveraged behind RPV since the bull market started in March 2009. RZV is up 489.4 percent from March 10, 2009, through March 8, 2016, good for average annualized returns of 28.9 percent, according Morningstar data. A $10,000 investment in RZV on March 10, 2016 would be worth over $58,000 today.
Guggenheim has 17 of the best-performing non-leveraged ETFs since the start of the current bull market. Only iShares with 24 has more. Said another way, Guggenheim has more than twice as many of the best-performing non-leveraged ETFs during the current bull market than does Vanguard.
Knowing that, perhaps it is not surprising to learn that the best non-leveraged sector ETF, and third-best non-leveraged ETF, overall during this bull market also hails from the Guggenheim family: The Rydex S&amp;P Equal Weight Consumer Dis ETF (NYSE: <a class="ticker" href="/stock/rcd#NYSE">RCD</a>). 
<h3>Don't Ignore RCD</h3>
Many investors know that the consumer discretionary sector has been on a tear since the end of the global financial crisis and that run has been aided <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/02/6211908/this-industry-etf-could-work-this-year">in large part</a> by stocks such as Amazon.com, Inc. (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>), Netflix, Inc. (NASDAQ: <a class="ticker" href="/stock/nflx#NASDAQ">NFLX</a>) and Dow component Walt Disney Co (NYSE: <a class="ticker" href="/stock/dis#NYSE">DIS</a>).
RCD deserves some love for returning 478 percent over the past seven years because those stocks combine for just 3.1 percent <a href="http://guggenheiminvestments.com/products/etf/details?productId=95">of the ETF&#39;s weight</a>. 
Image Credit: <a href="https://pixabay.com/en/india-buffalo-bison-asia-gaur-1136138/">Public Domain</a>

Economics

AMZN

NFLX

Rydex ETF Trust Rydex S&P Equal Weightnsumer Discretionary ETF

The Best ETF Since The Start Of The Bull Market Is...

<div class="entry-content">

		The small-cap value style ranks last out of the twelve fund styles as detailed in my <a href="http://blog.newconstructs.com/2012/10/11/investment-style-rankings-for-etfs-mutual-funds/">style rankings for ETFs and mutual funds</a>. It gets my Dangerous rating, which is based on aggregation of ratings of 13 ETFs and 263 mutual funds in the small-cap value style as of October 22, 2012. Prior reports on the best &amp; worst ETFs and mutual funds in every sector and style are <a href="http://www.newconstructs.com/nc/research/report/etf-and-fund-reports.htm">here</a>.

		Figures 1 and 2 show the five best and worst-rated ETFs and mutual funds in the style. Not all small-cap value style ETFs and mutual funds are created the same. The number of holdings varies widely (from 18 to 1684), which creates drastically different investment implications and ratings. The best ETFs and mutual funds allocate more value to Attractive-or-better-rated stocks than the worst, which allocate too much value to Neutral-or-worse-rated stocks.

		To <a href="http://blog.newconstructs.com/2012/10/09/how-to-find-the-best-etfs-2/">identify the best</a> and <a href="http://blog.newconstructs.com/2012/10/16/how-to-avoid-the-worst-etfs-2/">avoid the worst</a> ETFs and mutual funds within the small-cap value style, investors need a <a href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/">predictive rating</a> based on (1) <a href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/">stocks ratings</a> of the holdings and (2) the <a href="http://blog.newconstructs.com/2011/10/28/total-annual-costs-methodology/">all-in expenses</a> of each ETF and mutual fund. Investors need not rely on backward-looking ratings. My fund rating methodology is detailed <a href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/">here</a>.

		Investors should not buy any small-cap value ETFs or mutual funds because none get an Attractive-or-better rating. If you must have exposure to this style, you should buy a basket of Attractive-or-better rated stocks and avoid paying undeserved fund fees. Active management has a <a href="http://blog.newconstructs.com/2012/09/17/less-than-1-of-managers-deliver-alpha-here-are-details/">long history</a> of not paying off.

		Get my ratings on all ETFs and mutual funds in this style on my free <a href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm?task=ACTION_CATEGORY_TYPE_SEARCH&amp;selectedTypes=0,1&amp;selectedCategoryIds=5d9192f0114e11e1adb600188b533b34">mutual fund and ETF screener</a>.
<div>

			Figure 1: ETFs with the Best &amp; Worst Ratings &ndash; Top 5
</div>

		<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/SmallCapValueFig1.jpg"><img alt="" class="aligncenter size-full wp-image-4933" height="247" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/SmallCapValueFig1.jpg" title="SmallCapValueFig1" width="324" /></a>

		* Best ETFs exclude ETFs with &nbsp;NAVs less than 100 million.
<div>

			Sources: New Constructs, LLC and company filings
</div>
<div>

			Figure 2: Mutual Funds with the Best &amp; Worst Ratings &ndash; Top 5
</div>

		<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/SmallCapValueFig2.jpg"><img alt="" class="aligncenter size-full wp-image-4932" height="247" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/SmallCapValueFig2.jpg" title="SmallCapValueFig2" width="324" /></a>

		* Best mutual funds exclude funds with NAVs less than 100 million.
<div>

			Sources: New Constructs, LLC and company filings
</div>

		WisdomTree SmallCap Earnings Fund (NYSE: <a class="ticker" href="/stock/ees#NYSE">EES</a>) is my top-rated small-cap value ETF and Allianz Funds: NFJ Small-Cap Value Fund (NYSE: PSVIX) is my top-rated small-cap value mutual fund. Both earn my Neutral rating.

		Rydex S&amp;P Smallcap 600 Pure Value (NYSE: <a class="ticker" href="/stock/rzv#NYSE">RZV</a>) is my worst-rated small-cap value ETF and earns my Dangerous rating. Touchstone Strategic Trust: Touchstone Micro Cap Value Fund (NYSE: MXCAX) is my worst-rated small-cap value mutual fund and earns my Very Dangerous rating.

		Figure 3 shows that 421 out of the 2218 stocks (over 23% of the total net assets) held by small-cap value ETFs and mutual funds get an Attractive-or-better rating. However, none of the 13 small-cap value ETFs and none of the 263 small-cap value mutual funds get an Attractive-or-better rating.

		The takeaways are: mutual fund managers allocate too much capital to low-quality stocks and small-cap value ETFs hold poor quality stocks.
<div>

			Figure 3: Small-cap Value Style Landscape For ETFs, Mutual Funds &amp; Stocks
</div>
<div>

			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/SmallCapValueFig3.jpg"><img alt="" class="aligncenter size-full wp-image-4931" height="156" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/SmallCapValueFig3.jpg" title="SmallCapValueFig3" width="405" /></a>

			Sources: New Constructs, LLC and company filings
</div>

		As detailed in &ldquo;<a href="http://blog.newconstructs.com/2012/07/20/low-cost-funds-dupe-investors-2/">Cheap Funds Dupe Investors</a>&rdquo;, the fund industry offers many cheap funds but very few funds with high-quality stocks, or with what I call good <a href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/">portfolio management</a>.

		Investors need to tread carefully when considering small-cap value ETFs and mutual funds, as no ETFs or mutual funds in the small-cap value style allocate enough value to Attractive-or-better-rated stocks to earn an Attractive rating. Focus on individual stocks instead.

		Harman International Industries, Inc. (NYSE: <a class="ticker" href="/stock/har#NYSE">HAR</a>) is one of my favorite stocks held by small-cap value ETFs and mutual funds and earns my Very Attractive rating. HAR has positive and rising <a href="http://www.newconstructs.com/nc/help/glossary.htm#epDef">economic earnings</a>, a truer measure of profitability than reported earnings. HAR&rsquo;s current stock price of ~$43.78 implies that the company&rsquo;s NOPAT will permanently decline by 7%, a low hurdle for a company with a return on invested capital (<a href="http://www.newconstructs.com/nc/help/glossary.htm#roicDef">ROIC</a>) of 15%. Strong performance combined with a cheap valuation makes HAR an Attractive stock.

		Teleflex Inc. (NYSE: <a class="ticker" href="/stock/tfx#NYSE">TFX</a>) is one of my least favorite stocks held by small-cap value ETFs and mutual funds and earns my Dangerous rating. TFX is a value destroyer that has generated positive economic earnings in just two of the last 10 years. Not only has TFX destroyed shareholder value, but it also has misleading earnings &ndash; reported earnings are positive and increasing while economic earnings are negative and declining. Investor&rsquo;s who don&rsquo;t do their due diligence and read the financial footnotes and MD&amp;A may be in for a not-so-nice surprise.

		Figures 4 and 5 show the rating landscape of all small-cap value ETFs and mutual funds.

		Our <a href="http://blog.newconstructs.com/2012/10/11/investment-style-rankings-for-etfs-mutual-funds/">style rankings for ETFs and mutual funds</a> report ranks all styles and highlights those that offer the best investments.
<div>

			Figure 4: Separating the Best ETFs From the Worst Funds
</div>
<div>

			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/SmallCapValueFig4.jpg"><img alt="" class="aligncenter size-full wp-image-4930" height="245" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/SmallCapValueFig4.jpg" title="SmallCapValueFig4" width="409" /></a>

			Sources: New Constructs, LLC and company filings
</div>
<div>

			Figure 5: Separating the Best Mutual Funds From the Worst Funds
</div>
<div>

			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/SmallCapValueFig5.jpg"><img alt="" class="aligncenter size-full wp-image-4929" height="245" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/SmallCapValueFig5.jpg" title="SmallCapValueFig5" width="409" /></a>

			Sources: New Constructs, LLC and company filings
</div>

		Review my <a href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm?task=ACTION_CATEGORY_TYPE_SEARCH&amp;selectedTypes=0,1&amp;selectedCategoryIds=5d9192f0114e11e1adb600188b533b34">full list</a> of ratings and rankings along with reports on all 13 ETFs and 263 mutual funds in the small-cap value style.

		Disclosure: I receive no compensation to write about any specific stock, sector, style or&nbsp;theme.
</div>

Best & Worst ETFs and Mutual Funds: Small-cap Value Style

Comments

Invesco S&P Smallcap 600 Pure Value ETF

Actualités

Dernières nouvelles pour Invesco S&P Smallcap 600 Pure Value ETF (ARCA:RZV)

Notizie

PARTENAIRE / CONTRIBUTEUR

BENZINGA MONDIAL