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Strong returns in U.S. stocks, particularly over the past two plus years, have led investors to question the relative lack of companies going public via the IPO process — as well as the potential implications for the IPO market in the long term. According to active equity managers, a combination of increased public market regulation, a reduced pipeline of potential offerings following the prior boom, the rising role of large private asset managers in capital raising, and near-term uncertainty surrounding government policy are all contributing factors. At Russell Investments, we think investors benefit from taking a long-term view.
First Trust Small Cap Value AlphaDEX® Fund ETF combines two factors of the Fama-French model, size and value. FYT is well diversified across holdings, but quite concentrated in financials. FYT combines value and growth characteristics and shows impressive dividend growth.
The S&P 500 is on the verge of reaching the 5,000 milestone mark for the first time ever. High-beta ETFs seem a perfect bet at present to make huge profits amid the bullish backdrop.
Faster-than-expected U.S. economic recovery, geopolitical tensions, a stronger greenback and a resilient consumer base should boost small-cap ETFs now.
Peaking rates, decent U.S. GDP growth rate, stronger greenback and still-high consumer spending make these small-cap value ETFs better-positioned.
The month of July was especially upbeat for small-cap indexes.
Smart Beta ETF report for FYT
Style Box ETF report for FYT