SPDR S&P 600 Small Cap Growth ETF (based on S&P SmallCap 600 Growth Index --symbol CGK) (ARCA: SLYG)

에 대한 최신 뉴스 SPDR S&P 600 Small Cap Growth ETF (based on S&P SmallCap 600 Growth Index --symbol CGK) (ARCA:SLYG)

SPDR S&P 600 Small Cap Growth ETF (based on S&P SmallCap 600 Growth Index --symbol CGK)

Industrials

Consumer Cyclical

Technology

Healthcare

Financial Services

Energy

Real Estate

Basic Materials

Consumer Defensive

Communication Services

Utilities

Other

The fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index measures the performance of the small-capitalization growth segment of the U.S. equity market. It may purchase a subset of the securities in the index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the index.

Ati Inc

Mueller Industries Inc

Fabrinet

Sps Commerce Inc

Ensign Group Inc/the

Meritage Corporation

Carpenter Technology Corp

Spx Corp

Installed Building Products Inc

Federal Signal Corp

SPDR S&P 600 Small Cap Growth ETF (based on S&P SmallCap 600 G

Investors in large-cap health care stocks, even the supposedly ultra-conservative plays such as blue-chip pharmaceuticals names, have been treated to some stellar returns this year.

	That much is affirmed by better than 26 percent year-to-date gains for both the Health Care Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>) and the Vanguard Health Care ETF (NYSE: <a class="ticker" href="/stock/vht#NYSE">VHT</a>).

	Investors willing to take on a bit more risk have captured impressive gains with ETFs such as the iShares Nasdaq Biotechnology ETF (NASDAQ: <a class="ticker" href="/stock/ibb#NASDAQ">IBB</a>) and the Market Vectors Biotech ETF (NYSE: <a class="ticker" href="/stock/bbh#NYSE">BBH</a>). However, all of those ETFs are heavy on large-cap stocks. With the largest pharmaceuticals and biotech names thriving, some investors may wondering if the same can be said of small-cap health care plays.

	The PowerShares S&amp;P SmallCap Health Care Portfolio (NASDAQ: <a class="ticker" href="/stock/psch#NASDAQ">PSCH</a>) confirms the answer is "Yes, small-cap health care ETFs are tracking their large-cap rivals higher." Actually, in the past 90 days, PSCH, designed to be the small-cap equivalent of XLV, has decoupled from its large-cap rival in stunning fashion. In that time, XLV is up six percent, a decent performance to be sure. PSCH has more than tripled those returns.

	Looking at PSCH's 66-stock lineup, it is easy to see why the ETF has recently been offering investors a stunning level of out-performance relative to more traditional health care funds. The PowerShares offering is heavily allocated to biotech names. That makes sense as there are many more small-cap biotech names than there are small, regular pharmaceuticals firms.

	PSCH's top-10 holdings include PAREXEL International (NASDAQ: <a class="ticker" href="/stock/prxl#NASDAQ">PRXL</a>), a provider of clinical research and medical communications services, and Salix Pharmaceuticals (NASDAQ: <a class="ticker" href="/stock/slxp#NASDAQ">SLXP</a>). S&amp;P Capital IQ has a five-star rating on PAREXEL <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/07/3753598/health-care-etfs-looking-healthy-ahead-of-earnings">and a four-star rating on Salix</a>.

	Those stocks combine for 9.2 percent of PSCH's weight. "PSCH ranks well for its bullish technical factors and its relatively modest expense ratio," said S&amp;P Capital IQ in a new research note. The firm has an Overweight rating on PSCH.

	PSCH does feature 14.2 percent allocation to mid-cap growth names, but this is really a small-cap growth ETF with stocks with that designation accounting for 69.3 percent of the ETF's weight. The fund stacks up favorably against broad market small-cap growth ETFs. For example, the SPDR S&amp;P 600 Small Cap Growth ETF (NYSE: <a class="ticker" href="/stock/slyg#NYSE">SLYG</a>) is up 19.2 percent year-to-date. That is nothing to scoff at, but PSCH has jumped nearly 26 percent.

	Given its small-cap constituency, speculative investors can embrace PSCH as a play on a potential increase in <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/04/3490633/under-the-hood-an-unheralded-biotech-etf">biotech mergers and acquisitions activity</a>.

	In terms of valuation, small-cap growth names usually trade at some premium to the broader market, but PSCH is not too frothy relative to SLYG. The latter has a P/E ratio of 21.36 while PSCH's P/E is 23.48, <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=PSCH">according to PowerShares data</a>.

	PSCH, which debuted in April 2010, has $120.2 million in assets under management and annual fees of 0.29 percent.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Analyst Color

Long Ideas

News

Sector ETFs

Short Ideas

Small Cap Analysis

Small Cap

After-Hours Center

Markets

Analyst Ratings

Trading Ideas

ETFs

PRXL

PSCH

SLXP

SLYG

Don't Forget About This Small-Cap Health Care ETF 

<div class="entry-content">

		Finding the best ETFs is an increasingly difficult task in a world with so many ETFs to choose from.

		You Cannot Trust ETF Labels

		There are at least 38 different large cap value ETFs and at least 216 ETFs across all styles. Do investors need that many choices? How different can the ETFs be?

		Those 38 large cap value ETFs are very different. With anywhere from 30 to 1,351 holdings, many of these ETFs have drastically different portfolios, which creates drastically different investment implications.

		I am sure that large cap value ETFs hold many of the same big stocks such as International Business Machines (NYSE: <a class="ticker" href="/stock/ibm#NYSE">IBM</a>), Chevron (NYSE: <a class="ticker" href="/stock/cvx#NYSE">CVX</a>) and 3M (NYSE: <a class="ticker" href="/stock/mmm#NYSE">MMM</a>). However, investors need to know what else those ETFs hold before they can say they have done their due diligence.

		The same is true for the ETFs in any style as each offers a very different mix of good and bad stocks. Some styles have lots of good stocks and offer lots of good ETFs. The opposite is true for others while some styles lie in between with a fair mix of good and bad stocks. For example, large cap value, per my <a href="http://blog.newconstructs.com/2012/10/11/investment-style-rankings-for-etfs-mutual-funds/">4Q Style Rankings report</a>, ranks fourth out of 12 styles when it comes to providing investors with quality ETFs. Large cap blend ranks first. Small cap value ranks last. Details on the <a href="http://blog.newconstructs.com/2012/10/22/4q-best-worst-etfs-mutual-funds-by-style-recap/">Best &amp; Worst ETFs in each style are here</a>.

		The bottom line is that investors cannot trust ETF labels or names. They do not tell you what you are getting when you buy an ETF.

		Paralysis By Analysis

		I firmly believe ETFs for a given style should not all be that different. I think the large number of large cap value (or any other) style of ETFs hurts investors more than it helps because too many options can be paralyzing. It is simply not possible for the majority of investors to properly assess the quality of so many ETFs. Analyzing ETFs, done with the proper diligence, is far more difficult than analyzing stocks because it means analyzing all the stocks within each ETF. As stated above, that can be as many as 1,351 stocks for one ETF.

		Any investor worth his salt knows that knowing the holdings of an ETF is critical to finding the best ETF.

		The Danger Within

		Why do investors need to know the holdings of ETFs before they buy? They need to know to be sure they do not buy an ETF that might blow up. Buying an ETF without analyzing its holdings is like buying a stock without analyzing its business and finances. As Barron&rsquo;s says, investors should know the <a href="http://www.newconstructs.com/nc/news/display.htm?task=view&amp;newsItemId=402880a82dd6e460012dd754baf60001">Danger Within</a>. No matter how cheap, if it holds bad stocks, the ETF&rsquo;s performance will be bad.

		PERFORMANCE OF ETF&rsquo;s HOLDINGs = PERFORMANCE OF ETF

		Finding the Style ETFs with the Best Holdings

		Figure 1 shows my top rated ETF for each style. Importantly, my <a href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/">ratings on ETFs</a> are based primarily on my <a href="http://blog.newconstructs.com/2011/11/22/stock-rating-system-new-constructs-methodology-for-rating-equities/">stock ratings</a> of their holdings. My firm covers over 3000 stocks and is known for the due diligence we do for each stock we cover. Accordingly, our coverage of ETFs leverages the diligence we do on each stock by rating ETFs based on the aggregated ratings of the stocks each ETF holds. Here is a <a href="http://blog.newconstructs.com/wp-content/uploads/2012/12/SPHQ-Predictive-ETF-Rating-2012-12-12.pdf">sample ETF report</a>.

		PowerShares QQQ (NYSE: <a class="ticker" href="/stock/qqq#NYSE">QQQ</a>) is not only the top-rated large cap growth ETF, it is the overall top-rated ETF of the 216 style ETFs ETFs I cover. Only the large cap blend, large cap value and all cap blend styles contain any Attractive (i.e. 4-star) rated ETFs while the best every other style can offer is a Neutral or 3-star ETF.

		Sometimes, you get what you pay for.

		It is troubling to see one of the best style ETFs, PowerShares Buyback Achievers (NYSE: <a class="ticker" href="/stock/pkw#NYSE">PKW</a>) have just $206 million in assets. The largest ETF in all cap blend, Vanguard Total Stock Market ETF (NYSE: <a class="ticker" href="/stock/vti#NYSE">VTI</a>), has nearly $24 billion in assets thought it only gets a Neutral (3-star) rating. VTI&rsquo;s expense ratio at 0.07% is much lower than PKW&rsquo;s at 0.66%, but as I state above, no matter how cheap an ETF, if it does not hold good stocks it will not perform well. Sometimes, you get what you pay for.

		Another example of how to be sure you get what you pay for: PowerShares S&amp;P 500 High Quality Portfolio (NYSE: <a class="ticker" href="/stock/sphq#NYSE">SPHQ</a>) with a 4-star rating is the best large cap blend ETF but it only has $178 million in assets. iShares Core S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/ivv#NYSE">IVV</a>) and SPDR S&amp;P 500 (SPY) soak up the majority of the assets in that style even though they earn only 3-star ratings.

		I cannot help to wonder if more investors would buy SPHQ is they knew it has a superior portfolio of stocks. It is more expensive than IVV and SPY, but as I have stated, low fees cannot growth wealth, only good stocks can.

		Sometimes, you DON&rsquo;T get what you pay for.

		The smallest ETF in Figure 1 is Vanguard S&amp;P Small-Cap 600 Growth ETF (NYSE: <a class="ticker" href="/stock/viog#NYSE">VIOG</a>) with just $14 million in assets. Sadly, other small cap growth ETFs with more assets and similar portfolios (virtually identical top 5 holdings) charge more than VIOG. In other words, small cap growth ETF investors are paying extra fees for no reason.

		Specifically, at 0.28%, both SPDR S&amp;P 600 Small Cap Growth ETF (NYSE: <a class="ticker" href="/stock/slyg#NYSE">SLYG</a>) with $161 million in assets and iShares S&amp;P SmallCap 600 Growth Index Fund (NYSE: <a class="ticker" href="/stock/ijt#NYSE">IJT</a>) with $1,579 million in assets charge more than VIOG, which charges 0.22%. Sometimes, you do not get what you pay for.

		The worst ETF in Figure 1 is small cap blend&rsquo;s iShares Core S&amp;P Small-Cap ETF (NYSE: <a class="ticker" href="/stock/ijr#NYSE">IJR</a>), which gets a Dangerous (2-star) rating. One would think ETF providers could do better for this style.

		I recommend investors only buy ETFs with more than $100 million in assets. You can find more liquid alternatives for the other funds on my <a href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm">free ETF screener</a>.
<div>

			Figure 1: Best Style ETFs 
</div>
<div>

			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/12/HowFindBestStyleETFs.jpg"><img alt="" class="aligncenter size-full wp-image-5142" height="180" src="http://blog.newconstructs.com/wp-content/uploads/2012/12/HowFindBestStyleETFs.jpg" title="HowFindBestStyleETFs" width="495" /></a>

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

		Covering All The Bases, Including Costs

		My ETF rating also takes into account the <a href="http://blog.newconstructs.com/2011/10/28/total-annual-costs-methodology/">total annual costs</a>, which represents the all-in cost of being in the ETF. This analysis is simpler for ETFs than funds because they do not charge front- or back-end loads and transaction costs are incurred directly. There is only the expense ratio, which is normally quite low. However, my ratings penalize those ETFs with abnormally high expense ratios or any other hidden costs.

		Top Stocks Make Up Top ETFs

		One of my favorite holdings in SPHQ is Kellogg (NYSE: <a class="ticker" href="/stock/k#NYSE">K</a>), which gets my Attractive (4 star) rating. This company earns the rare distinction of generating positive <a href="http://blog.newconstructs.com/2010/08/05/economic-versus-accounting-earnings/">economic earnings</a> every year since my model begins in 1998. Moreover, since 1998, Kellogg&rsquo;s economic earnings have grown over 260% or 8% compounded annually. That is a very steady cash-generating machine. However, the stock&rsquo;s valuation seems to overlook the company&rsquo;s profitable history. At ~$60/share, the current market valuation implies the company&rsquo;s cash flows (<a href="http://blog.newconstructs.com/2012/11/08/nopat-definition-and-formulae-for-net-operating-profit-after-tax-and-nopat-margin/">NOPAT</a>) will permanently decline by 6%. A valuation that implies permanent profit decline and a history of strong profit generation make a nice risk/reward combination.

		One of my favorite holdings in the Dow Jones Industrial Average ETF (DIA), one of four ETFs in Figure 1 to get my 4-star rating, is Exxon Mobil (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>). In &ldquo;<a href="http://blog.newconstructs.com/2012/08/07/slow-steady-wins-the-race-buy-xom/">Slow and Steady Wins the Race</a>&rdquo;, I explain how XOM has created enormous value for shareholders over the last quarter century. Buying Exxon Mobil (XOM) now is one of the easiest calls in the market these days. With superior cash flows, a cheap valuation and one of the strongest competitive positions in the business world, it is hard to make a straight-faced argument against owning this stock anywhere below $100. My model shows the stock is worth $140 if one assumes profits never grow from 2011 levels, i.e. the &ldquo;no-growth&rdquo; value of the stock. This stock offers nice risk/reward too.

		Disclosure: I own XOM. I receive no compensation to write about any specific stock, style or theme.
</div>

iShares S&P SmallCap 600 Growth Index Fund

SPHQ

VIOG

How To Find the Best Style ETFs

<div class="entry-content">

		The small-cap growth style ranks ninth out of the twelve fund styles as detailed in my <a data-cke-saved-href="http://blog.newconstructs.com/2012/07/16/roadmap-to-the-best-worst-etf-mutual-fund-styles/" href="http://blog.newconstructs.com/2012/07/16/roadmap-to-the-best-worst-etf-mutual-fund-styles/">style roadmap</a>. It gets my Dangerous rating, which is based on aggregation of ratings of 12 ETFs and 478 mutual funds in the small-cap growth style as of July 19, 2012. Reports on the best &amp; worst ETFs and mutual funds in every sector and style are <a data-cke-saved-href="http://www.newconstructs.com/nc/research/report/etf-and-fund-reports.htm" href="http://www.newconstructs.com/nc/research/report/etf-and-fund-reports.htm">here</a>.

		Figure 1 ranks from best to worst the eight small-cap growth ETFs that meet our liquidity standards and Figure 2 shows the five best and worst-rated small-cap growth mutual funds. Not all small-cap growth style ETFs and mutual funds are created the same. The number of holdings varies widely (from 26 to 1170), 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 data-cke-saved-href="http://blog.newconstructs.com/2012/04/03/how-to-find-the-best-etfs/" href="http://blog.newconstructs.com/2012/04/03/how-to-find-the-best-etfs/">identify the best</a> and <a data-cke-saved-href="http://blog.newconstructs.com/2012/04/05/how-to-avoid-the-worst-etfs/" href="http://blog.newconstructs.com/2012/04/05/how-to-avoid-the-worst-etfs/">avoid the worst</a> ETFs and mutual funds within the small-cap growth style, investors need a <a data-cke-saved-href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/" href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/">predictive rating</a> based on (1) <a data-cke-saved-href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/" href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/">stocks ratings</a> of the holdings and (2) the <a data-cke-saved-href="http://blog.newconstructs.com/2011/10/28/total-annual-costs-methodology/" 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 data-cke-saved-href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/" href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/">here</a>.

		Investors should not buy any small-cap growth 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 <a data-cke-saved-href="http://www.newconstructs.com/nc/stockscreener/stock-screener.htm" href="http://www.newconstructs.com/nc/stockscreener/stock-screener.htm">Attractive-or-better rated stocks</a> and avoid paying undeserved fund fees. Active management has a long <a data-cke-saved-href="http://blog.newconstructs.com/wp-content/uploads/2012/02/Failure-of-Active-Management1.pdf" href="http://blog.newconstructs.com/wp-content/uploads/2012/02/Failure-of-Active-Management1.pdf">history</a> of not paying off.

		See ratings and reports on all ETFs and mutual funds in this style on my free <a data-cke-saved-href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm?task=ACTION_CATEGORY_TYPE_SEARCH&amp;selectedTypes=0,1&amp;selectedCategoryIds=5d917900114e11e1a25d00188b533b34" href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm?task=ACTION_CATEGORY_TYPE_SEARCH&amp;selectedTypes=0,1&amp;selectedCategoryIds=5d917900114e11e1a25d00188b533b34">mutual fund and ETF screener</a>.
<div>

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

		<a data-cke-saved-href="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth1.jpg" href="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth1.jpg"><img alt="" class="aligncenter size-full wp-image-4348" data-cke-saved-src="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth1.jpg" height="212" src="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth1.jpg" title="SmallCapGrowth1" width="329" /></a>

		* Best ETFs exclude ETFs with less NAV&rsquo;s less than 100 million.
<div>

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

		<a data-cke-saved-href="http://bit.ly/NU9hju" href="http://bit.ly/NU9hju">Four ETFs</a> are excluded from Figure 1 because their total net assets (TNA) are below $100 million and do not meet our liquidity standards.
<div>

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

		<a data-cke-saved-href="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth2.jpg" href="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth2.jpg"><img alt="" class="aligncenter size-full wp-image-4347" data-cke-saved-src="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth2.jpg" height="235" src="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth2.jpg" title="SmallCapGrowth2" width="329" /></a>

		* Best mutual funds exclude funds with NAV&rsquo;s less than 100 million.
<div>

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

		<a data-cke-saved-href="http://bit.ly/LYV0bq" href="http://bit.ly/LYV0bq">Seven mutual funds</a> are excluded from Figure 2 because their total net assets (TNA) are below $100 million and do not meet our liquidity standards.

		SPDR S&amp;P 600 Small Cap Growth ETF (NYSE: <a class="ticker" href="/stock/slyg#NYSE">SLYG</a>) is my top-rated small-cap growth ETF and Virtus Equity Trust: Virtus Small-Cap Core Fund (NYSE: PKSFX) is my top-rated small-cap growth mutual fund. Both earn my Neutral rating.

		iShares Morningstar Small Growth Index Fund (NYSE: <a class="ticker" href="/stock/jkk#NYSE">JKK</a>) is my worst-rated small-cap growth ETF and CM Advisors Family of Funds: CM Advisors Opportunity Fund (NYSE: CMOGX) is my worst-rated small-cap growth mutual fund. Both earn a Dangerous-or-worse rating.

		Figure 3 shows that 386 out of the 2043 stocks (20% of the total net assets) held by small-cap growth ETFs and mutual funds get an Attractive-or-better rating. This low allocation to investment worthy stocks is the reason no small-cap growth ETFs or mutual funds are worth buying. None of the 478 mutual funds are justifying their <a data-cke-saved-href="http://blog.newconstructs.com/2011/10/28/total-annual-costs-methodology/" href="http://blog.newconstructs.com/2011/10/28/total-annual-costs-methodology/">total annual costs</a>.

		The takeaways are: small-cap growth mutual fund managers allocate pick poor stocks and small-cap growth ETFs offer exposure to poor quality stocks.
<div>

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

			<a data-cke-saved-href="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth3.jpg" href="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth3.jpg"><img alt="" class="aligncenter size-full wp-image-4346" data-cke-saved-src="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth3.jpg" height="156" src="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth3.jpg" title="SmallCapGrowth3" width="401" /></a>

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

		As detailed in &ldquo;<a data-cke-saved-href="http://blog.newconstructs.com/2012/05/09/low-cost-funds-dupe-investors/" href="http://blog.newconstructs.com/2012/05/09/low-cost-funds-dupe-investors/">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 data-cke-saved-href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/" href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/">portfolio management</a>.

		Investors should not buy any small-cap growth ETFs and mutual funds. None of the small-cap growth ETFs or mutual funds allocate enough value to Attractive-or-better-rated stocks to earn an Attractive-or-better ratings. Investors seeking exposure to mid-cap growth stocks are better of buying Attractive-or-better-rated mid-cap growth stocks. Review my <a data-cke-saved-href="http://www.newconstructs.com/nc/stockscreener/stock-screener.htm" href="http://www.newconstructs.com/nc/stockscreener/stock-screener.htm">free stock screener</a> for individual stock investments.

		RLI Corporation (NYSE: <a class="ticker" href="/stock/rli#NYSE">RLI</a>) is one of my favorite stocks held by small-cap growth ETFs and mutual funds and earns my Very Attractive rating. I&rsquo;m bearish on the <a data-cke-saved-href="http://blog.newconstructs.com/2012/07/13/best-worst-etfs-mutual-funds-financials-sector-2/" href="http://blog.newconstructs.com/2012/07/13/best-worst-etfs-mutual-funds-financials-sector-2/">Financials sector</a> but RLI is an exception. RLI has generated a return on invested capital (<a data-cke-saved-href="http://www.newconstructs.com/nc/help/glossary.htm#roicDef" href="http://www.newconstructs.com/nc/help/glossary.htm#roicDef">ROIC</a>) over its weighted average cost of capital (<a data-cke-saved-href="http://www.newconstructs.com/nc/help/glossary.htm#helpWacc" href="http://www.newconstructs.com/nc/help/glossary.htm#helpWacc">WACC</a>) in each of the 14 years in my model and produced positive <a data-cke-saved-href="http://www.newconstructs.com/nc/help/glossary.htm#epDef" href="http://www.newconstructs.com/nc/help/glossary.htm#epDef">economic earnings</a> each year. The company&rsquo;s ROIC of 16% at fiscal year end 2011, places the company in the 87th percentile of all Russell 3000 companies. In spite of strong past performance, the market has a pessimistic view of RLI&rsquo;s future cash flows. The company&rsquo;s stock price (~$70.40) implies that after-tax profits (<a data-cke-saved-href="http://www.newconstructs.com/nc/help/glossary.htm#nopat" href="http://www.newconstructs.com/nc/help/glossary.htm#nopat">NOPAT</a>) will permanently decrease by 20%. This downturn in performance seems unlikely given that the company has grown profits by an average of 19% over the past 14 years.

		TIVo Inc. (NASDAQ: <a class="ticker" href="/stock/tivo#NASDAQ">TIVO</a>) is one of my least favorite stocks held by small-cap growth ETFs and mutual funds and earns my Very Dangerous rating. Unlike RLI, TIVO has never generated positive economic earnings during the 14 years in my model. To make matters worse, the company is disclosing accounting earnings that are positive and rising. Investors need to be aware of this accounting window dressing. In addition to poor economic earnings, the company&rsquo;s free cash flows (<a data-cke-saved-href="http://www.newconstructs.com/nc/help/glossary.htm#fcfDef" href="http://www.newconstructs.com/nc/help/glossary.htm#fcfDef">FCF</a>) have been negative and decreasing in each of the past three years. With a current stock price of (~$7.94) the market believes that TIVO will achieve a drastic improvement in profitability, but all indicators are pointing to the opposite. TIVO offers investors a poor risk/reward tradeoff.

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

		Our <a data-cke-saved-href="http://blog.newconstructs.com/2012/07/16/roadmap-to-the-best-worst-etf-mutual-fund-styles/" href="http://blog.newconstructs.com/2012/07/16/roadmap-to-the-best-worst-etf-mutual-fund-styles/">style roadmap</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 data-cke-saved-href="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth4.jpg" href="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth4.jpg"><img alt="" class="aligncenter size-full wp-image-4345" data-cke-saved-src="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth4.jpg" height="245" src="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth4.jpg" title="SmallCapGrowth4" 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 data-cke-saved-href="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth5.jpg" href="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth5.jpg"><img alt="" class="aligncenter size-full wp-image-4344" data-cke-saved-src="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth5.jpg" height="245" src="http://blog.newconstructs.com/wp-content/uploads/2012/07/SmallCapGrowth5.jpg" title="SmallCapGrowth5" width="409" /></a>

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

		Review my <a data-cke-saved-href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm?task=ACTION_CATEGORY_TYPE_SEARCH&amp;selectedTypes=0,1&amp;selectedCategoryIds=5d917900114e11e1a25d00188b533b34" href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm?task=ACTION_CATEGORY_TYPE_SEARCH&amp;selectedTypes=0,1&amp;selectedCategoryIds=5d917900114e11e1a25d00188b533b34">full list</a> of ratings and rankings along with free reports on all 12 ETFs and 478 mutual funds in the small-cap growth style.

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

iShares Morningstar Small Growth Index Fund

TIVO

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

Buckle (NYSE: <a class="ticker" href="/stock/bke#NYSE">BKE</a>) is scheduled to report fourth-quarter 2011 results tomorrow, March 8, before the markets open. The teen apparel purveyor saw strong same-store sales in December and January on strong demand for jeans and footwear. Investors will be looking for that to begin a new streak of positive surprises following the penny-per-share earnings beat in the previous quarter.

Analysts anticipate the company will report that its per-share earnings came to $1.14 for the quarter and that revenue totaled $335.1 million. In the same quarter of last year, the company posted $1.05 per share and $303.1 million in sales. That EPS estimate has risen from $1.11 some 60 days ago. But note that in the past six quarters, Buckle's per-share earnings have topped consensus estimates three times and fallen short three times. However, results have been within a penny or two of the forecast in the past three quarters.

Looking back to the previous quarter, the retailer reported net income of $38.3 million, or 81 cents per share. That was up 11% year over year. Revenue rose 12% to $273.4 million. Both the EPS and revenue numbers topped analysts' expectations. The company attributed the strong results in part on strong online sales.

For the full year, the consensus forecast calls for $3.16 per share earnings on revenue of $1.1 billion. That would be up from $2.86 per share and $949.8 million last year. That EPS estimate has risen three cents over the past 60 days.

The Company

Kearny, Neb.-based Buckle is a retailer of casual apparel, footwear and accessories for fashion-conscious young men and women. It is known for its large selection of denim offerings, including its exclusive brand, BKE. The company operates about 430 stores in 43 states and also sells via e-commerce. The company was founded in 1948 and now has a market cap of $2.2 billion.

Competitors include Abercrombie &amp; Fitch (NYSE: <a class="ticker" href="/stock/anf#NYSE">ANF</a>), American Eagle Outfitters (NASDAQ: <a class="ticker" href="/stock/aeo#NASDAQ">AEO</a>) and Urban Outfitters (NASDAQ: <a class="ticker" href="/stock/urbn#NASDAQ">URBN</a>). Abercrombie reported a drop in its fourth-quarter profit and said it will be closing 180 stores. American Eagle recently lowered its fourth-quarter guidance and is scheduled to post its results this morning. Urban Outfitters reports March 12 and is expected to say that EPS fell by a third but that revenues were up 11% from a year ago.

See also: <a href="http://www.benzinga.com/news/earnings/12/03/2402908/earnings-scheduled-for-march-7">Earnings Scheduled for March 7</a>

During the three months that ended in January, Buckle saw strong same-store sales each month. And the board authorized a $0.20 per share quarterly dividend. More recently, the company signed a multiyear renewal agreement its private label credit card service provider.

See also: <a href="http://www.benzinga.com/news/12/02/2311046/the-buckle-january-comparable-store-sales-up-7-4">The Buckle January Comparable-Store Sales Up 7.4%</a>

Performance

Buckle's P/E ratio is lower than the industry average. The company has a long-term earnings per share growth forecast of 9.7%. Its operating margin is better than the industry average, and the return on equity is 39.9%. However, short interest is 29.9% of the float, and just one of the 12 analysts surveyed who follow the stock recommends buying it. And their mean price target on the shares is only marginally higher than the current share price.

The share price has pulled back about 4% from last week's multiyear high of $49.00. Shares still are trading more than 15% higher than at the beginning of the year, and about 37% higher than a year ago. The share price is well above the 50-day and 200-day moving averages. Over the past six months, the stock has outperformed competitors such as Abercrombie &amp; Fitch and Urban Outfitters, as well as the broader markets.

<div id="action-items">ACTION ITEMS:

Bullish: Investors interested in exchange traded funds invested in Buckle might want to consider the following trades:

<ul><li>SPDR S&amp;P Retail (NYSE: <a class="ticker" href="/stock/xrt#NYSE">XRT</a>) is more than 12% higher year to date.</li>
<li>PowerShares S&amp;P Small Cap Consumer Discretionary (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>) is more than 11% higher year to date.</li>
<li>Direxion All Cap Insider Sentiment Shares (NYSE: <a class="ticker" href="/stock/know#NYSE">KNOW</a>) is more than 11% higher year to date.</li>
<li>SPDR S&amp;P 600 Small Cap Growth ETF (NYSE: <a class="ticker" href="/stock/slyg#NYSE">SLYG</a>) is more than 5% higher year to date.</li>
</ul>Bearish: Traders may prefer to consider these alternative positions in the same industry:

<ul><li>Michael Kors Holdings (NYSE: <a class="ticker" href="/stock/kors#NYSE">KORS</a>) is up almost 72% year to date.</li>
<li>Ascena Retail Group (NASDAQ: <a class="ticker" href="/stock/asna#NASDAQ">ASNA</a>) is up more than 39% year to date.</li>
<li>Chico's FAS (NYSE: <a class="ticker" href="/stock/chs#NYSE">CHS</a>) is up more than 35% year to date.</li>
</ul>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</div>

Earnings

Previews

ASNA

KNOW

KORS

PSCD

URBN

Buckle Earnings Preview: EPS and Sales Growth Expected

DineEquity (NYSE: <a class="ticker" href="/stock/din#NYSE">DIN</a>) is scheduled to report fourth-quarter 2011 results tomorrow, March 1, before the markets open. The stock is up nearly 20% in the past 90 days. The company has been reinvesting in the business and is expected to do so through 2012. And speculation has it initiating a dividend in the next two or three years. But the restaurant operator also lowered its same-store sales forecasts for the year when it reported results back in November. 

Analysts are looking for DineEquity to report that its per-share earnings came to $0.85 for the quarter and that revenue totaled $242.3 million. In the same quarter of last year, the company posted $0.59 per share and $299.8 million in sales. Note that the EPS estimate was a penny less some 60 days ago. And out of the past six reporting periods, DineEquity topped consensus EPS estimates three times and fell short three times.

Looking back to the previous quarter, DineEquity said adjusted earnings came to $1.04 per share, an 8.6% increase from the same period of the previous year. That topped analysts' expectations. But sales for the quarter dropped 21.2% year over year to $264.5 million. Same-store sales were down from both the Applebee's and IHOP chains, reversing their previous trends. The company attributed the higher quarterly profit in part to lower interest expenses. But it also said it expects food costs to remain high in 2012.

For the full year, the analysts' consensus estimate calls for $4.24 per share earnings, up from $3.50 the previous year. That EPS estimate has also inched up a penny in the past 60 days. And DineEquity's full-year revenues are expected to have decreased 19.4% year over year to $1.1 billion.

The Company

Glendale, Calif.-based DineEquity operates about 2,000 Applebee's Neighborhood Grill and Bar locations and about 1,500 IHOP, or International House of Pancakes, restaurants in the U.S. and internationally. Applebee's fits in the casual dining category and IHOP in the family dining category of the restaurant industry. The company was founded in 1976 and has a market cap of $944.8 million.

Competitors include Brinker International (NYSE: <a class="ticker" href="/stock/eat#NYSE">EAT</a>), Cracker Barrel Old Country Store (NASDAQ: <a class="ticker" href="/stock/cbrl#NASDAQ">CBRL</a>) and Denny's (NASDAQ: <a class="ticker" href="/stock/denn#NASDAQ">DENN</a>). The first two restaurant operators posted fourth-quarter EPS that were better than analysts expected, but Denny's fell short of estimates.

See also: <a href="http://www.benzinga.com/news/earnings/12/01/2284600/brinker-international-down-8-after-reporting-earnings">Brinker International Down 8% After Reporting Earnings</a> and <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/02/2351962/update-feltl-and-company-downgrades-dennys-to-buy">Feltl &amp; Co. Downgrades Denny's to Buy</a>

During the three months that ended in December, DineEquity opened its first IHOP Express in San Diego and it named a new vice president in charge of government affairs. IHOP locations were open on Thanksgiving and Christmas days, and Applebee's appointed a new senior vice president of operations.

See also: <a href="http://www.benzinga.com/news/11/10/1985832/founder-of-applebees-neighborhood-grill-bar-sells-40-locations-to-affiliate-of-ih">Founder of Applebee's Neighborhood Grill &amp; Bar Sells 40 Locations</a>

Performance

DineEquity's forward earnings multiple is less than the industry average P/E, and its PEG ratio is less than the industry average. The company has a long-term earnings per share growth forecast of 11.0%, and its operating margin is better than the industry average. Though short interest is 8.4% of the float, half of the eight analysts surveyed who follow the stock rate it a Buy or Strong Buy. None recommend selling shares. But their mean price target on the shares is only 3.4% higher than the current share price.

At Tuesday's close, the share price was 28.4% higher than six months ago but still 12.2% below the 52-week high of $59.64. The share price is well above the 50-day and 200-day moving averages, and the former crossed above the latter last week. The stock has outperformed Brinker International and Denny's, as well as the broader markets, over the past six months.

<div id="action-items">ACTION ITEMS:

Bullish: Investors interested in exchange traded funds invested in DineEquity might want to consider the following trades:

<ul><li>PowerShares S&amp;P Small Cap Consumer Discretionary (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>) is about 15% higher year to date.</li>
<li>PowerShares Fundamental Pure Small Growth (NYSE: PXSG) is more than 11% higher year to date.</li>
<li>iShares S&amp;P Small Cap 600 Growth (NYSE: <a class="ticker" href="/stock/ijt#NYSE">IJT</a>) is more than 9% higher year to date.</li>
<li>SPDR S&amp;P 600 Small Cap Growth ETF (NYSE: <a class="ticker" href="/stock/slyg#NYSE">SLYG</a>) is about 9% higher year to date.</li>
</ul>Bearish: Traders may prefer to consider these alternative positions in the same industry:

<ul><li>Buffalo Wild Wings (NASDAQ: <a class="ticker" href="/stock/bwld#NASDAQ">BWLD</a>) is up about 30% year to date.</li>
<li>PF Chang's China Bistro (NYSE: <a class="ticker" href="/stock/pfcb#NYSE">PFCB</a>) is up more than 27% year to date.</li>
<li>Red Robin Gourmet Burgers (NASDAQ: <a class="ticker" href="/stock/rrgb#NASDAQ">RRGB</a>) is up about 25% year to date.</li>
</ul>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</div>

BWLD

CBRL

DENN

PFCB

RRGB

DineEquity Earnings Preview: Q4 EPS Up 30%, Sales Down 19% Expected

Cabela's (NYSE: <a class="ticker" href="/stock/cab#NYSE">CAB</a>) is scheduled to report third-quarter 2011 results Thursday, October 27, before the markets open. Consumers have been clamping down on discretionary spending due to economic conditions. But this specialty retailer is looking to continue its streak: it has seen net income rise in three straight quarters and revenue has risen in the past four quarters.

Analysts on average predict that Cabela's will report earnings of $0.44 per share, up 29.5% from the same quarter of last year. That EPS estimate is unchanged over the past 90 days. And note that Cabela's earnings have not fallen short of consensus estimates in the past ten quarters.

The forecast also calls for the company to post revenues of $681.5 million, which would be 5.9% higher than a year ago. Looking ahead to the current quarter, which will include the holiday season, analysts so far are looking for 4.0% year-over-year growth in revenues. And the forecast for the full year so far calls for revenues up 5.0% from a year ago, with per-share earnings 12.0% higher.

The Company

Cabela's is a retailer and direct marketer of hunting, fishing, camping and related outdoor merchandise. The Nebraska-based company operates 33 stores in the United States and Canada, as well as its subsidiary, World's Foremost Bank. The company was founded in 1961 and now has a market cap of $1.8 billion.

During the three months that ended in September, the company announced new stores in Charleston, W.V., and Rogers, Ark. Cabela's also announced that it had hired a new executive in charge of marketing and e-commerce.

Performance

The company has a long-term earnings per share growth forecast of 14.6% and a PEG ratio of 0.9. Its 14.5 P/E ratio is lower than the industry average, and its 7.8% operating margin is higher than the industry average. Seven out of 11 analysts who follow the stock rate it a Buy or Strong Buy, and they have a mean price target of $30.44 per share, which is 15.6% higher than the current share price.

The share price has jumped more than 16% in the past month, finally recovering from the sell-off in August. The stock is about 18% higher than at the beginning of the year, but more than 20% lower than the 52-week high of $32.37 per share. The price is now above the 50-day and 200-day moving averages. The stock has outperformed competitors such as Dick's Sporting Goods (NYSE: <a class="ticker" href="/stock/dks#NYSE">DKS</a>) and Hibbett Sports (NASDAQ: <a class="ticker" href="/stock/hibb#NASDAQ">HIBB</a>) since the beginning of the year.

Action Items:

Bullish: Investors interested in exchange traded funds invested in Cabela's might want to consider the following trades:

<ul><li>SPDR S&amp;P Retail (NYSE: <a class="ticker" href="/stock/xrt#NYSE">XRT</a>) is more than 20% higher than a year ago.</li>
<li>SPDR S&amp;P 600 Small Cap Growth ETF (NYSE: <a class="ticker" href="/stock/slyg#NYSE">SLYG</a>) is about 11% higher than a year ago.</li>
<li>PowerShares S&amp;P SmallCap Consumer Discretionary (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>) is more than 5% higher than a year ago.</li>
</ul>

Bearish: Traders may want to consider these alternative positions:

<ul><li>ProShares UltraShort SmallCap600 (NYSE: <a class="ticker" href="/stock/sdd#NYSE">SDD</a>) is more than 7% higher than six months ago.</li>
<li>ProShares Short SmallCap600 (NYSE: <a class="ticker" href="/stock/sbb#NYSE">SBB</a>) is more than 7% higher than six months ago.</li>
</ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

HIBB

Cabela's Earnings Preview: Looking to Extend a Streak

No Market Misgiving On This Thanksgiving

Fiscal To The Fore

U.S. Election Could Create A Small-Cap Opportunity For Multi-Asset Investors

SPDR S&P 600 Small Cap Growth ETF declares quarterly distribution of $0.3676

Fed Flip Flop Leads To A Market Reversal Or Correction?

RWJ: Simple And Effective Small-Cap Strategy

Market Outlook For 2025: Gauging The Global Effects Of New U.S. Policies

Disruptive Forces In Investing - Small Caps, Big Opportunities

In The Balance

SLYG: High-Growth ETF Prioritizing Small-Cap Exposure

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