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Vanguard Small-Cap ETF Receives “Best” Rating From AI This Week

This week we’re taking a look at the top US SMID Cap Smart Beta ETFs, and at a good time because there have been some concerns in the small cap space lately. The recent pullback may have scared some out of the space, as you see with the fund flows for most of the holdings below. Of course, we’re still hovering near records all-time in stocks, and there are a flurry of megacap tech companies reporting this week that could make or break the market. Tesla
TSLA
will kick it off after the closing bell, but we will also hear from Apple
AAPL
, Alphabet, Microsoft
MSFT
, Google
GOOG
, Facebook, and Amazon
AMZN
this week. Earnings season so far has been excellent, with 88% of S&P 500 companies reporting positive EPS surprise, the highest percentage since 2008 when FactSet started tracking the number. On the economic front, sales of new US single-family homes dropped unexpectedly to 676,000 units versus expectations of 795,000. As noted, Q.ai’s deep learning algorithms have identified several top US SMID Cap Smart Beta ETFs based on fund flows over the last 90-days, 30-days, and 7-days. We have recognized 1 ETF rated as “Best,” 5 rated as “Good,” and another 4 rated as “Caution.”

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Best

Vanguard Small-Cap ETF (VB)

The Vanguard Small-Cap ETF
VB
is our first and only Best-rated ETF this week. The ETF is for those looking to seek to maximize exposure to small-cap U.S. companies, and corresponds generally to the CRSP US Small Cap Index, after fees and expenses. The ETF is medium-sized as well, with $44,471,437,867.20 AUM. It has seen mixed fund flows as of late, with an increase over the last 90 days of $1,412,382,766.35, a 30-day fund flow of -$96,670,222.58, and a 1-week fund flow of $164,753,297.27. Its net expense ratio of 0.05% is very attractive.

Good

iShares S&P SmallCap 600 ETF (IJR)

Moving along to our Good-rated ETFs is the iShares S&P SmallCap 600 ETF
IJR
. The goal of this ETF is to track the investment results of an index composed of small-capitalization U.S. equities. With $68,860,805,533.80 it is the largest ETF on this week’s list. Its fund flows have been negative with a 90-day fund flow of -$555,880,460.00, 30-day fund flow of -$1,218,552,035.00, and 1-week fund flow of -$192,784,465.00. With a net expense ratio of 0.06%, it is also very cheap.

MORE FROM FORBESiShares Core S&P Small-Cap ETF (IJR)

iShares Russell 2000 ETF (IWM)

The iShares Russell 2000 ETF
IWM
 is the next Good-rated ETFs this week. The ETF seeks to track the investment results of an index composed of small-capitalization U.S. equities. The ETF is on the larger size with $68,392,708,107.60 AUM. It has seen negative fund flows, with a 90-day fund flow of -$971,267,300.00, a 30-day fund flow of -$1,288,264,560.00, and a 1-week fund flow of -$383,209,105.00. The ETFs net expense ratio of 0.20% is on the expensive side for this week’s list, but not the most expensive.  

MORE FROM FORBESiShares Russell 2000 ETF (IWM)

Invesco FTSE RAFI US 1500 Small-Mid ETF (PRFZ)

The Invesco FTSE RAFI US 1500 Small-Mid ETF
PRFZ
 is our third Good-rated ETF this week. This ETF is based on the FTSE RAFI US 1500 Small-Mid Index. With $1,935,237,744.00 in AUM, it is one of the smallest ETFs on this week’s list. Its fund flows have been mixed with a 90-day fund flow of -$5,703,080.30, 30-day fund flow of $11,057,780.20, and 1-week fund flow of $9,135,040.90. With a net expense ratio of 0.39%, it is the most expensive ETF on this week’s list.

MORE FROM FORBESInvesco FTSE RAFI US 1500 Small-Mid ETF (PRFZ)

SPDR S&P 600 Small Cap ETF (SLY)

The next ETF on our list of Good-rated ETFs is the SPDR S&P 600 Small Cap ETF
SLY
. The ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Small Cap 600 Index. The ETF is one of the smaller ones this week with $1,742,048,447.09 AUM. It has also seen mixed fund flows, with a 90-day fund flow of $14,543,923.25, 30-day fund flow of -$23,543,708.15, and 1-week fund flow of -$9,192,502.25. Its net expense ratio of 0.15% is attractive.

MORE FROM FORBESSPDR S&P 600 Small Cap ETF (SLY)

Invesco S&P SmallCap 600 Revenue ETF (RWJ)

The Invesco S&P SmallCap 600 Revenue ETF is our final U.S. SMID Cap Smart Beta ETF
RWJ
rated Good this week. This ETF is based on the S&P SmallCap 600 Revenue-Weighted Index, which is constructed using a rules-based approach that re-weights securities of the S&P SmallCap 600 Index according to the revenue earned by the companies, with a maximum 5% per company weighting. It is also small sized in terms of AUM with $538,833,961.84. Its fund flows have been mixed, with a 90-day fund flow of $105,159,583.00, a 30-day fund flow of -$85,682,994.50, and a 1-week fund flow of -$20,335,417.20. With a net expense ratio of 0.39%, it is tied for the most expensive in terms of cost this week. 

MORE FROM FORBESInvesco S&P SmallCap 600 Revenue ETF (RWJ)

Caution

iShares S&P 400 MidCap ETF (IJH)

The first Caution-rated ETF for this week is the iShares S&P 400 MidCap ETF
IJH
. This ETF seeks to track the investment results of an index composed of mid-capitalization U.S. equities. It is one of the larger ETFs this week in terms of AUM with $63,043,495,600.80 AUM. Its fund flows have been negative, with a 90-day fund flow of -$461,402,620.00, 30-day fund flow of -$35,916,630.00, and 1-week fund flow of -$221,698,140.00. With a net expense ratio of 0.05%, it is also very inexpensive.

MORE FROM FORBESiShares Core S&P Mid-Cap ETF (IJH)

Vanguard Mid-Cap ETF (VO)

The Vanguard Mid-Cap ETF
VO
is the next US SMID Smart Beta ETF rated as “Caution” this week. The ETF’s goal is to gain exposure to core U.S. mid cap equity companies. The ETF is medium-sized with $46,948,283,796.20 AUM. It has seen mixed fund flows, with a 90-day fund flow of $1,133,496,252.15, 30-day fund flow of -$428,148,794.95, and 1-week fund flow of -$66,455,616.31. Its net expense ratio is extremely attractive at 0.04%.

MORE FROM FORBESVanguard Mid-Cap ETF (VO)

iShares Russell Mid-Cap ETF (IWR)

The iShares Russell Mid-Cap ETF
IWR
is our third Caution-rated ETF this week. The objective of the ETF is to track mid-cap companies in the US as well. The ETF is medium sized on this week’s list with $28,133,896,668.80 AUM. It has also seen mixed fund flows, with a 90-day fund flow of $370,483,030.00, 30-day fund flow of -$8,570,535.00, and 1-week fund flow of -$144,980,980.00. Its net expense ratio of 0.20% is on the higher side this week.  

MORE FROM FORBESiShares Russell Mid-Cap ETF (IWR)

SPDR S&P MidCap 400 ETF Trust (MDY)

The SPDR S&P MidCap 400 ETF Trust
MDY
 our final Caution-rated ETF this week. This ETF seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P MidCap 400 Index. With $21,169,498,061.31 AUM, it is medium-sized on this week’s list. Its fund flows have been negative with a 90-day fund flow of -$390,133,533.55, a 30-day fund flow of -$216,618,200.00, and a 1-week fund flow of -$239,747,275.00. With a net expense ratio of 0.24%, it is one of the more expensive this week.

MORE FROM FORBESSPDR S&P MidCap 400 ETF Trust (MDY)

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