Weekly Report: what happened at VTWO last week (0415-0419)?

AVUV: The One Actively Managed Fund That I Like

Avantis US Small Cap Value ETF has significantly outperformed the Russell 2000 and its associated sub-indices. It has also marginally outperform the S&P 500. The majority of AVUV's outperformance occurs in the months of May to August. It offers diversification benefits to investors with a bullish view on small caps. The Russell 2000 has a negative return of 5% this year.

Weekly Report: what happened at VTWO last week (0408-0412)?

Why We Won't See A Recession In 2024

The jobs market is unlikely to lead to a recession in 2024. Wage growth continues to trend lower, while a spike in unemployment that would trigger a recession appears unlikely from here. The labour market is cooling, but is expected to begin to tighten in the coming years. The decline in wage growth has been caused by a lack of labour supply.

Noteworthy ETF Inflows: VTWO, ELF, SSD, FN

IWM A Bargain As The S&P 500's P/E Hits 21x

IShares Russell 2000 ETF (IWM) is still a buy based on valuation and its diversified exposure. Small caps have been relatively weak in 2024. The first Fed rate cut is often a bullish catalyst for small caps. The SPX sells for 21 times forward operating earnings estimates.

Weekly Report: what happened at VTWO last week (0401-0405)?

U.S. Economic Review And Outlook Q1 2024

What To Buy After You Sell The Russell 2000

Despite the case for small caps, it is recommended to sell the Russell 2000 and related ETFs. The Russell 2000 suffers from negative alpha and seasonal factors. The S&P 600 and the CRSP Small Cap Index do not suffer from the same issues. IJR, VB, and AVUV are good alternatives to IWM, VRTIX, and VTWO.

VTI: Why We Like Total Market Better Than S&P 500

Vanguard Total Stock Market ETF offers advantages over the S&P 500 index due to its inclusion of mid and small-cap companies. VTI provides exposure to higher growth potential at a potentially lower valuation compared to the stock market. The stock market is currently very expensive and VTI's dividend yield is lower than its historical average.

Weekly Report: what happened at VTWO last week (0325-0329)?

It's Selling Season For The Russell 2000 And ETFs That Track It

It's Selling Season For The Russell 2000 And ETFs That Track It May to August has historically been a period of underperformance for the Russell 2000 index. The index incurs significant transaction costs during its annual rebalancing in June, dragging down performance. TheRussell 2000 index is flawed and historically has had negative alpha, making it a good time to exit the index.

Hope Springs Eternal, Again, For Small-Cap Equities

Small-caps have fallen well short of expectations that a risk premium in lesser companies would deliver superior returns over the broad market. The so-called small-cap premium has been elusive in recent years. Some analysts say small caps are poised to run hot in the US.

Weekly Report: what happened at VTWO last week (0318-0322)?

Should Vanguard Russell 2000 ETF (VTWO) Be on Your Investing Radar?

U.S. Recession Probability Nears A Double Top

The odds the U.S. Economy will see a recession start in the next 12 months are nearing a double top. The prospect for a recession has ticked up since bottoming in December 2023. The inversion of the Treasury curve has deepened since then. The Federal Reserve is expected to meet in March 2024 to discuss setting short-term interest rates.

Weekly Report: what happened at VTWO last week (0311-0315)?

RYLD: Small Cap Implied Volatility Dips, Not Ideal For Selling Calls

RYLD: Lagging Other Buy-Write ETFs

The U.S. Economic Bust Continues, But A Recession Has Been Delayed