Vanguard Small-Cap ETF에 대한 매도 수량은 투자자에게 Vanguard Small-Cap ETF의 주식 하락에 베팅하는 정도를 알려줍니다. 매도 수량 데이터는 2주마다 업데이트됩니다.

Vanguard Small-Cap ETF (ARCA:VB), 공매도 수량 보고

Vanguard Small-Cap ETF

Industrials

Technology

Consumer Cyclical

Financial Services

Healthcare

Real Estate

Energy

Consumer Defensive

Basic Materials

Utilities

Communication Services

Other

The Fund employs an indexing investment approach designed to track the performance of the CRSP US Small Cap Index (the Index), a broadly diversified index of stocks of small U.S. companies. The Fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the Index, holding each stock in approximately the same proportion as its weighting in the Index.

Deckers Outdoor Corp

Targa Resources Corp.

Microstrategy Inc

Ptc Inc

Carlisle Cos Inc

Axon Enterprise Inc

Booz Allen Hamilton Holding Corp.

Builders Firstsource Inc

Entegris, Inc.

Vanguard Small Cap ETF

Long Ideas

News

Sector ETFs

Broad U.S. Equity ETFs

Small Cap Analysis

Small Cap

Trading Ideas

ETFs

제조업의 부활과 소형주의 부흥이 2025년에 일어날 것을 기대해 보자. 글로벌 X ETF의 투자 전략 책임자인 스콧 헬프스타인(Scott Helfstein)의 말dl다. 23개월간의 힘든 축소 기간을 거친 후, &#34;온건한 보호무역 정책이 생산을 재시작하는 데 도움이 될 수 있다&#34;고 그가 말했다.

제조업 부활? 전략가 관세가 소형주에 도움이 되지만 소비자에게 부담이 될 것으로 예상

Analyst Color

Analyst Ratings

Media

AVSC

VTWO

가벨리 펀드(Gabelli Funds)의 밸류(Value) 공동 CIO인 케빈 드레이어(Kevin Dreyer)에 따르면 소형주는 강력한 상승세를 보일 준비가 되어 있다. 최근 CNBC 인터뷰에서 가벨리 에셋 펀드(GABAX)를 감독하는 드레이어는 소형주가 &#39;상당한 상승 여력이 있고&#39; 포트폴리오를 다각화하려는 투자자들에게 점점 더 매력적인 옵션이 되고 있다고 강조했다.

러셀 2000 주식, 대형주에 비해 &#39;대규모 할인&#39; 거래 중: 가벨리 펀드의 케빈 드레이어

Specialty ETFs

거대 기술 기업들이 헤드라인을 장악할지 몰라도, 소형주에서는 보다 조용한 혁명이 일어나고 있다. 카슨 그룹(Carson Group LLC)의 수석 시장 전략가인 라이언 데트릭(Ryan Detrick)에 따르면 소형주는 놀라운 상승세를 보이고 있을 뿐만 아니라 곧 대형 경쟁사들을 능가할 수도 있다.

소형주들이 2024년 남은 기간 동안 &#34;대형주 형제들을 이끌 것&#34;으로 예상: 시장 전략가

VIRBAC SA UNSP/ADR by Virbac SA

VITAL BATTERY METALS INC by Vital Battery Metals Inc.

Vital Battery Metals Inc

VIBE VENTURES INC by Vibe Ventures Inc

Invesco Bond Fund

Village Bank and Trust Financial Corp. - Common Stock

Village Bank and Trust Financial Corp

Verde Bio Holdings Inc

Valobit

VBI Vaccines Inc (Canada) COM NEW

VBI VACCINES INC (CDA) by VBI Vaccines, Inc. (CDA)

VBI Vaccines Inc

ViewBix Inc

VIVA BIOTECH HOLDINGS by Viva Biotech Holdings

Viva Biotech Holdings

Vanguard Small-Cap Growth ETF

VALEREUM PLC by VALEREUM PLC

Vident U.S. Bond Strategy ETF

VersaBank

Vanguard Small-Cap Value ETF

Vubotics Inc

Veritex Holdings Inc

Verbio SE

VIABUILT VENTURES INC by Viabuilt Ventures Inc.

Viabuilt Ventures Inc

Venus BUSD

Expect a manufacturing revival and <a href="https://www.benzinga.com/news/small-cap">a small-cap resurgence in 2025</a>.
That&#8217;s according to Scott Helfstein, head of investment strategy at Global X ETF. After a grueling 23 months of contraction, &#8220;modest protectionist policy might help jump-start production,&#8221; he <a href="https://www.globalxetfs.com/global-x-2025-outlook/">says</a>.
<h2 class="wp-block-heading">Manufacturing: From Doldrums To Dynamo</h2>
Despite its diminished role compared to services, manufacturing still packs a $7 trillion punch—roughly 25% of GDP. Global X sees tariff policies and supply chain recalibrations as potential sparks for growth.
Here's the kicker: historical trends show even a 1% bump in tariffs can lead to a 0.2% boost in new orders and longer work hours. Expanding business services will offset <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42421528/trumps-tariff-storm-3-survival-strategies-us-companies-are-using-to-fight-back">higher prices weighing on consumers</a>, Helfstein predicts.
The Industrial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) provides investors with exposure to some of the top names in the industrial and manufacturing space.
Read Also: <a href="https://www.benzinga.com/24/11/41886697/two-ideas-famed-stock-market-forecasters-agree-on-for-2025">Why Trump&#8217;s Win Has 2 Market Experts Betting On Small Caps, Financials</a>
<h2 class="wp-block-heading">Small Caps: Ready To Run</h2>
Should <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis">small-cap companies</a> return to prior spending levels, that could amount to $140 billion and a 4% lift to nonresidential private investment, Helfstein adds. 
Deregulation and improved business conditions could reignite their capital expenditures, he explains. So while these companies may not dominate headlines like their mega-cap peers, their ability to drive localized growth and market expansion is hard to ignore. 
Popular ETFs such as the iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>), the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and the Vanguard Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) provide exposure to small-cap stocks in the U.S.
<h2 class="wp-block-heading">Valuations: Lofty, But Justified?</h2>
With the S&amp;P 500's forward price-to-earnings ratio sitting at a lofty 24x, skepticism is natural. But Global X argues this could be part of a lasting shift, fueled by record-high profit margins and companies doubling down on tech-driven efficiencies.
And here's the standout stat: 73% of the S&amp;P 500 is trading above its 200-day moving average. That&#8217;s a sign that market breadth is improving. Pair that with a manufacturing rebound and small-cap revival, and the path to broader participation looks clearer.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/general/space/24/12/42412982/russell-2000-high-flyers-4-stocks-shaping-2024-with-quantum-ai-nuclear-space">Russell 2000 High Flyers: 4 Stocks Shaping 2024 With Quantum, AI, Nuclear, Space</a></li>
</ul>
Image: Shutterstock

Manufacturing Comeback? Strategist Expects Tariffs To Help Small-Cap Stocks But Weigh On Consumers

The <a href="https://www.benzinga.com/topic/russell-2000-index">Russell 2000 Index</a> has been showing signs of life in 2024, breaking out from a long-standing base and closing in on targets near 2450. 
According to JPMorgan analyst Jason Hunter, small-cap stocks may finally be ready to outperform their mega-cap tech peers. This may be good news for investors in the iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>), the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and the Vanguard Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>)
But will this shift be the dawn of a new era, or just a fleeting moment in the spotlight?
Read Also: <a href="https://www.benzinga.com/markets/equities/24/10/41364980/russell-2000-poised-for-major-technical-breakout-analyst-eyes-a-trend-reversal-in-favor-of-small">Russell 2000 Poised For Major Technical Breakout: Analyst Eyes &#8216;A Trend Reversal In Favor Of Small Caps Outperforming&#8217; S&amp;P 500</a>
<h2 class="wp-block-heading">Russell 2000 Sets Bullish Targets</h2>
Hunter points to a "bullish pattern progression" forming in 2024 as the Russell 2000 climbed from a multi-quarter base. Small caps have broken through the 2282-2299 resistance zone, making 2432-2486 the next short-term goal, and the move has shown no signs of losing steam yet. The recent rally in small-cap stocks, especially in the Russell 2000 Index, seems to be moving closer to 2021 cycle highs, which could mean a big shift in market dynamics.
For now, the index stays decisively bullish. As long as it holds above the 2260 post-election breakaway gap, Hunter sees the bulls maintaining control, with potential support anchored around the 2100s, courtesy of the 200-day moving average and October's breakout zone.
<h2 class="wp-block-heading">Small Cap Vs. NASDAQ 100: A New Market Leader?</h2>
According to Hunter, the Russell 2000's recent moves aren't just about technical strength – they're about a potential regime change.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="464" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12113039/Screenshot-2024-11-12-at-9.58.55-PM.png" alt="" class="wp-image-643311" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12113039/Screenshot-2024-11-12-at-9.58.55-PM.png 794w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12113039/Screenshot-2024-11-12-at-9.58.55-PM-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12113039/Screenshot-2024-11-12-at-9.58.55-PM-768x449.png 768w" sizes="(max-width: 794px) 100vw, 794px" /></figure>
The ratio of the Russell 2000 to the NASDAQ 100 is flirting with key resistance levels. A breakout here would confirm that small caps are set to lead, while big tech, which has dominated for two years, may start to lag. 
Hunter calls this a "tentative rotation to more cyclically sensitive groups." This trend, he believes, could continue into 2025 if the Russell/NASDAQ ratio breaks out decisively this quarter.
<h2 class="wp-block-heading">What's Driving Small-Cap Strength?</h2>
Even before the election-driven rally in U.S. equities, post-September FOMC price action had already put a bullish wind at the back of small caps. Hunter notes that small caps have consistently held key supports, including the October channel and moving averages, creating a setup for continued gains.
The Russell 2000's next targets include 2585, derived from the recent ascending triangle pattern. If the index clears these levels, it could signal a more sustainable trend favoring cyclicals over mega-cap tech. But a reversal back below these supports could be a sign that the small-cap rally is just a temporary phenomenon.
<h2 class="wp-block-heading">Cyclicals In Control – For Now</h2>
Hunter's outlook stays cautiously optimistic, but he warns that the future performance of small caps versus tech hinges on whether they can maintain these breakout levels. While he sees continued bullish momentum into early 2025, Hunter emphasizes that tracking the Russell/NASDAQ ratio is key to confirming any real change in market leadership.
If this trend holds, 2024 could mark a major shift back to small caps and cyclicals. For now, though, it's up to the Russell 2000 to prove this rally is more than a fleeting burst of strength.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/09/40777734/exclusive-small-caps-at-most-attractive-relative-valuations-since-1990s-says-russell-inv" target="_blank" rel="noreferrer noopener">EXCLUSIVE: Small Caps At &#8216;Most Attractive Relative Valuations&#8217; Since 1990s, Says Russell Investments&#8217; Paul Eitelman</a></li>
</ul>
Image:

Technicals

Russell 2000 Rallies, JPMorgan Analyst Says Small Cap May Outperform Mega-Cap Peers

The Federal Reserve&#8217;s recent 50 basis point rate cut marks a notable shift in monetary policy, with significant implications for both the U.S. economy <a href="https://www.benzinga.com/markets/emerging-markets">and global markets</a>. 
Fund managers and strategists are weighing in on what this means for investors and what to expect next.
<h2 class="wp-block-heading">KraneShares: Fed's Rate Cut Signals A Cycle</h2>
Brendan Ahern, CIO of KraneShares, believes the Fed's 50 bps rate cut is the beginning of a larger easing cycle.
According to Ahern, &#8220;Another 50 basis point reduction is expected later this year, with an additional 100 basis points projected for 2025.&#8221; 
While some fear the possibility of a mild recession, Ahern points out that the U.S. economy is still displaying resilience. "Unemployment remains low, inflation is easing, consumer spending is holding strong, and corporate profits are generally stable," he notes, suggesting the potential for a "soft landing" instead of a hard downturn.
<h2 class="wp-block-heading">Russell Investments: Softer Stance Could Boost Markets</h2>
Paul Eitelman, chief investment strategist at Russell Investments, shares a more tempered yet optimistic view, noting that the Fed&#8217;s focus is shifting from aggressive inflation control to stabilizing economic growth.
&#8220;This marked the start of a long-awaited easing cycle,&#8221; he said, adding that the Fed is aiming to prevent major damage to the labor market.
Eitelman expects the Fed to maintain a steady pace of cuts—25 bps at each meeting through 2025—to balance risks. Should this strategy succeed, sectors like real estate and small caps could benefit from lower rates and a stabilizing economy.
The Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) and the SPDR Real Estate Select Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) are two of the most popular real estate equity tracking ETFs in the U.S. 
On the small-cap front, the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and the iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>) are two popular ETFs tracking the Russell 2000 Index &#8211; a popular benchmark for small-cap equity in the U.S. The iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>) and the Vanguard Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) are two other popular small-cap equity-tracking ETFs.
Don't miss out on this unparalleled opportunity:
<ul>
<li><a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Register now to secure your spot at Benzinga's Largest SmallCap Conference ever in Chicago!</a></li>
</ul>
<h2 class="wp-block-heading">WisdomTree&#8217;s Senior Economist: &#8220;I Am Surprised"</h2>
WisdomTree senior economist Professor Jeremy Siegel offered a candid take, expressing surprise at the Fed's bold move. &#8220;I&#8217;ll have to say, I am surprised. I was saying of course I wanted 50, you know I even wanted more, but I didn&#8217;t think he was going to do it.&#8221;
Siegel&#8217;s analysis also highlights the Fed's response to catching up with inflation control. "They realize that they were a bit behind the curve and now they are catching up," he said.
Siegel believes the rate cuts lower the probability of a recession, helping sustain economic strength.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/09/40995794/key-stock-market-dates-predicting-major-swings-revealed-ahead-of-2024-election-according-to-bank">Key Stock Market Dates Predicting Major Swings Revealed Ahead Of 2024 Election, According To Bank Of America</a>
<h2 class="wp-block-heading">Emerging Markets: A Beneficiary Of Lower Rates?</h2>
KraneShares' Ahern also highlights the potential boost for emerging markets. A weaker U.S. dollar resulting from lower rates could &#8220;strengthen emerging market currencies,&#8221; and increased capital inflows may follow. Investors in the iShares Core MSCI Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEMG#NYSE">IEMG</a>) and the Vanguard FTSE Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VWO#NYSE">VWO</a>) are well-positioned to benefit from the strengthening of emerging market equities.
Chinese assets, in particular, are attracting global investors as they trade at low valuations. Investors in the iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>) and the KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) are positioned to benefit from any increase in fund flows towards Chinese equities.
Ahern advises closely watching both U.S. policy shifts and China's economic recovery for potential opportunities in this space.
While the Fed's aggressive 50 bps cut has caught many by surprise, fund managers and strategists agree it may provide much-needed relief to financial markets, with growth sectors and emerging markets standing to benefit from the shift.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/bonds/24/09/40993114/companies-run-to-bond-markets-after-last-weeks-fed-rate-cut">Companies Run To Bond Markets After Last Week&#8217;s Fed Rate Cut</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Asia

Emerging Markets

Emerging Market ETFs

Federal Reserve

Markets

IEMG

KWEB

MCHI

XLRE

Fed 'Catching Up' With 50-Point Rate Cut: Fund Managers Expect Gains In Emerging Markets, Small Caps

Small-cap stocks are all fired up ahead of the Federal Reserve's <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40921827/fed-decision-is-here-5-things-investors-need-to-know-ahead-of-wednesdays-pivotal-in">anticipated interest rate cut</a>, enjoying their moment in the spotlight. Over the past week, the Russell 2000 Index surged more than 5%, outperforming its larger-cap cousins in the S&amp;P 500 Index, which only gained about 2.5%.
<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091824&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="623" height="454" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18094504/Screenshot-2024-09-18-at-7.14.43-PM.png" alt="" class="wp-image-554121" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18094504/Screenshot-2024-09-18-at-7.14.43-PM.png 623w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18094504/Screenshot-2024-09-18-at-7.14.43-PM-300x219.png 300w" sizes="(max-width: 623px) 100vw, 623px" /></a></figure>
<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091824&amp;t=be2bearmibe3na1">Chart created using Benzinga Pro</a>
Evidently, the Russell 2000 Index-tracking iShares Russell 2000 ETF (IWM) has outperformed the S&amp;P 500 index-tracking SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>). Among those driving small-cap performance over the past week are stocks such as IGM Biosciences Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IGMS#NASDAQ">IGMS</a>), Intuitive Machines Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LUNR#NASDAQ">LUNR</a>) and Applied Therapeutics Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APLT#NASDAQ">APLT</a>) which are up 59.33%, 38.62% and 44.90%, respectively, over the past five days.
Don't miss out on this unparalleled opportunity:
<ul>
<li><a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Register now to secure your spot at Benzinga's Largest SmallCap Conference ever in Chicago!</a></li>
</ul>
<h2 class="wp-block-heading">Small Caps Anticipating A Fall In Borrowing Cost</h2>
Investors seem convinced the Fed is about to ease up, and small caps—especially those burdened by debt and tied to floating rates—are reaping the benefits.
Here's why: small-cap companies tend to rely on floating-rate debt, meaning when interest rates drop, their borrowing costs fall too. In theory, this frees up cash and makes life a little easier for companies with shakier balance sheets. So naturally, rate cuts have investors licking their chops over the potential for outsized gains in these smaller stocks.
But before you jump on the small-cap train, there's a wrinkle.
<h2 class="wp-block-heading">Earnings, Economy Could Turn The Table</h2>
While the prospect of cheaper borrowing is exciting, the markets are also buzzing with talks of sluggish earnings and a murky U.S. economic outlook. Thus, the hype around small caps could fizzle if the economy doesn't hold up its end of the bargain.
For investors looking to get in on the action, exchange-traded funds like the IWM or the Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) provide diversified exposure to small-cap stocks. These funds track the performance of small-cap indexes and are great ways to benefit from potential gains without handpicking individual stocks.
Still, there's the question of how long this rally will last.
<h2 class="wp-block-heading">Small Cap ETF Showing Strong Bullish Trend</h2>
<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091824&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="623" height="454" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18100852/Screenshot-2024-09-18-at-7.38.35-PM.png" alt="" class="wp-image-554200" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18100852/Screenshot-2024-09-18-at-7.38.35-PM.png 623w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18100852/Screenshot-2024-09-18-at-7.38.35-PM-300x219.png 300w" sizes="(max-width: 623px) 100vw, 623px" /></a></figure>
<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091824&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Chart created using Benzinga Pro</a>
The IWM, proxy for small cap stocks, is exhibiting a strong bullish trend, with its share price of $219.23 positioned above the five, 20, 50 and 200-day simple moving averages (SMAs). 
Specifically, the eight-day SMA at $213.80, the 20-day SMA at $215.07 and the 50-day SMA at $214.41 all suggest a bullish signal, reflecting the ETF&#8217;s robust upward momentum. 
Despite the strong bullish trend, IWM is currently experiencing slight selling pressure, indicating potential short-term volatility. The ETF&#8217;s position well above its 200-day SMA of $203.57 further supports a positive technical outlook, suggesting continued strength in the small-cap sector.
If the Fed goes big with a half-point cut, small caps might steal the show. But even a modest 25-basis-point cut could keep the rally alive—for now. 
Investors may want to keep an eye on the SPDR S&amp;P 600 Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLY#NYSE">SLY</a>) for broader exposure to small-cap companies that might benefit from lower rates.
Don&#8217;t miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference on Oct. 9-10, 2024</a>,&nbsp;at the Chicago Marriott Downtown Magnificent Mile.
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders.
<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Secure your spot and get your tickets today!</a>
Read Next: 
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<li><a href="https://www.benzinga.com/news/24/09/40919822/small-cap-sectors-brace-for-fed-rate-cut-financials-real-estate-etfs-offer-compelling-plays-for-inve">Small-Cap Sectors Brace For Fed Rate Cut: Financials, Real Estate ETFs Offer Compelling Plays For Investors</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

APLT

IGMS

LUNR

Russell 2000 Outpaces S&P 500 As Small Caps Anticipate Fed's Interest Rate Move

The Federal Reserve is set to sprinkle some interest rate fairy dust, and small-cap sectors are lining up to see who'll soar or stumble. While the Russell 2000 is stealing the spotlight with its 5% surge ahead of the rate cut, not all small caps will feel the same love from <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis">lower borrowing costs</a>. 
So, what sectors should investors be eyeing, and where do the best ETFs come into play?
<h2 class="wp-block-heading">Financials: Money Talks, But Who's Listening?</h2>
Small-cap financials, often living and breathing on rate-sensitive margins, are gearing up for a potential win. 
As borrowing costs fall, these lenders, insurers, and regional banks get a shot in the arm. For those looking to ride the wave, the iShares Russell 2000 Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWFN#NYSE">IWFN</a>) offers concentrated exposure to this potentially booming sector.
<h2 class="wp-block-heading">Real Estate: Open House For Gains?</h2>
Real estate stocks also stand to benefit as mortgage rates and financing costs drop. With rate cuts loosening the borrowing purse strings, real estate could experience a boost in demand and valuation. 
Investors eyeing the space might find the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) or iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>) perfect for capturing the sector's expected rise.
Don&#8217;t miss out on this unparalleled opportunity:
<ul>
<li><a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Register now to secure your spot at Benzinga&#8217;s Largest SmallCap Conference ever in Chicago!</a></li>
</ul>
<h2 class="wp-block-heading">Consumer Discretionary: Retail Therapy Ahead?</h2>
Lower interest rates also often mean more cash for consumers to splurge on non-essentials, giving a lift to small-cap retail, travel, and leisure names.
The SPDR S&amp;P 600 Small Cap Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSCD#NYSE">PSCD</a>) is one way to jump on this sector's shopping spree.
<h2 class="wp-block-heading">Energy: A Wildcard In The Small-Cap Mix</h2>
Energy stocks are notorious for being tied to oil prices, but lower rates can still offer some breathing room for these debt-heavy companies. 
For those ready to hedge their bets, the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) could be the small-cap energy ETF to watch.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40749609/this-small-cap-top-pick-is-positioned-for-strong-gains-jpmorgan-sees-over-50-upside">This Small Cap &#8216;Top Pick&#8217; Is Positioned For Strong Gains, JPMorgan Sees Over 50% Upside</a>
<h2 class="wp-block-heading">Technology, Healthcare: Resilient But&#8230; Rate-Resistant?</h2>
While technology and healthcare sectors aren't as rate-sensitive as financials or real estate, they remain staples in small-cap ETFs like the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>). 
Both funds are solid all-around plays for investors who want diversified exposure to the small-cap space, especially as uncertainty lingers.
As the Fed moves its rate-cutting wand, small-cap sectors will each feel the ripples differently. 
Whether you're banking on financials, betting on real estate, or shopping for consumer discretionary, there's a sector—and ETF—for every investor's playbook.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/09/40777734/exclusive-small-caps-at-most-attractive-relative-valuations-since-1990s-says-russell-inv" target="_blank" rel="noreferrer noopener">EXCLUSIVE: Small Caps At &#8216;Most Attractive Relative Valuations&#8217; Since 1990s, Says Russell Investments&#8217; Paul Eitelman</a></li>
</ul>
Don&#8217;t miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference on Oct. 9-10, 2024</a>,&nbsp;at the Chicago Marriott Downtown Magnificent Mile.
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders.
<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Secure your spot and get your tickets today!</a>
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IWFN

iShares Trust Dow Jones US Real Estate Fund Index

PSCD

Small-Cap Sectors Brace For Fed Rate Cut: Financials, Real Estate ETFs Offer Compelling Plays For Investors

Small cap stocks are poised for a strong rally, according to Kevin Dreyer, co-CIO of Value at Gabelli Funds.
In a recent CNBC <a href="https://www.youtube.com/watch?v=k9u3gs7uztA">interview</a>, Dreyer, who oversees the Gabelli Asset Fund (GABAX), emphasized that small caps have &#8220;a long room to run&#8221; and are increasingly becoming an attractive option for investors looking to diversify their portfolios.
<h1 class="wp-block-heading">From Large Caps To Small Caps: The Shift Began In Early July</h1>
Dreyer noted that while growth stocks have dominated the markets for some time, a shift began to emerge in early July. 
"We are long-time value investors, and growth has really led the markets for some time now. But we started to see this rotation in early July," Dreyer explained.
This change is closely tied to recent actions by the Federal Reserve, which will soon start cutting interest rates. "Now this was in line with what we all are seeing now — the Fed finally cutting rates, and we&#8217;re seeing small-caps and value start to do better."
Read Also: <a href="https://www.benzinga.com/news/24/08/40535630/small-caps-set-to-lead-their-large-cap-brothers-for-rest-of-2024-says-market-strategist">Small Caps Set To &#8216;Lead Their Large Cap Brothers&#8217; For Rest Of 2024, Says Market Strategist</a>
<h1 class="wp-block-heading">Small Caps: Trading At &#8216;Massive Discount&#8217; To Large Cap Counterparts</h1>
The renewed interest in small caps comes as they are trading at a substantial discount compared to their large-cap counterparts. 
"Right now, they trade at a massive discount to their large-cap peers," Dreyer highlighted, suggesting that this could be an ideal time for investors to consider adding small caps to their portfolios.
Dreyer's optimistic view is also supported by the recent performance of the Russell 2000, a key index for small-cap stocks, which seems on track to close higher. Popular ETFs tracking the index closely include the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), the Vanguard Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTWO#NYSE">VTWO</a>) and the Avantis U.S Small Cap Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVSC#NYSE">AVSC</a>).
Though they don&#8217;t track the Russell 2000 index, the iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>) and the Vanguard Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) are other popular ways to get investment exposure to small-cap equity.
<h1 class="wp-block-heading">Small Caps Still Have A &#8216;Long Way To Go&#8217;</h1>
"By and large, we&#8217;ve been buying more small caps lately, and we think they&#8217;ve got a long way to go," Dreyer added, indicating that the current market environment could present a lucrative opportunity for those looking to capitalize on undervalued assets.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/08/40447799/small-caps-soar-3-russell-2000-stocks-doubling-investor-wealth-in-2024">Small Caps Soar: 3 Russell 2000 Stocks Doubling Investor Wealth In 2024</a></li>
</ul>
Don&#8217;t miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference on Oct. 9-10, 2024</a>, at the Chicago Marriott Downtown Magnificent Mile.
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders.
<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Secure your spot and get your tickets today</a>!
Photo: IConcept via Shutterstock

Russell 2000 Stocks 'Trading At A Massive Discount' To Large Caps: Gabelli Funds' Kevin Dreyer

While the titans of tech may dominate headlines, a quieter revolution is brewing among <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis">small-cap stocks</a>. 
According to Ryan Detrick, chief market strategist at Carson Group LLC, small caps are not only staging a remarkable rally but could soon surpass their larger rivals.
Detrick has thrown a spotlight on this trend with his recent tweet, noting that &#8220;The past 12 months small caps are up 18%.&#8221;
&#8220;Yes, they aren&#8217;t up as much as large cap tech, but we continue to expect them to do quite well the rest of &#8217;24 and likely lead their lg cap brothers,&#8221; he said in a post.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The past 6 months small caps are up 9%. The past 12 months small caps are up 18%. The past 5 yrs small caps are up 50%. Yes, they aren&#39;t up as much as large cap tech, but we continue to expect them to do quite well the rest of &#39;24 and likely lead their lg cap brothers.
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1826996780610802069?ref_src=twsrc%5Etfw">August 23, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<h2 class="wp-block-heading">Small Cap ETFs Showing Strength</h2>
Here's how the small-cap ETFs are faring, underscoring the bullish sentiment:
<ul>
<li>iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>): Up 8% YTD, this ETF has delivered a 9.2% gain over the past six months and a solid 17% over the past year. Its five-year return stands at an impressive 57%.</li>
<li>iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>): This ETF boasts a 10.3% YTD increase and a 18.5% rise over the past year, with a five-year gain of 51%.</li>
<li>Vanguard Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>): With an 10% YTD performance, VB has risen 18.3% in the past year and 56.6% over five years.</li>
</ul>
These strong performances highlight the potential in the small-cap sector. For those looking to explore further opportunities and navigate a volatile market, the <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/">Benzinga SmallCAP Conference</a> on Oct. 9-10 in Chicago offers a chance to gain valuable insights and connect with industry leaders.
Read Also: <a href="https://www.benzinga.com/news/24/08/40515774/international-small-cap-etf-reaches-52-week-high-leaving-investors-wondering-whats-next">International Small-Cap ETF Reaches 52-Week High, Leaving Investors Wondering What&#8217;s Next</a>
<h2 class="wp-block-heading">What This Means for Investors?</h2>
Despite the dominance of large-cap tech stocks, small caps are carving out their own success story. Detrick's insight hints at an exciting year ahead for these nimble players, suggesting they could outpace their larger counterparts.
For investors, the potential leadership of small caps in 2024 could present a significant opportunity. As Detrick suggests, small-cap stocks are not only catching up, but could outpace their larger counterparts in the near future. This shift could translate into substantial gains for those who pivot to small-cap investments now.
ETFs like IJR, IWM, and VB offer diversified exposure to this segment, reflecting their strong recent performance and potential for continued growth. 
Investors looking to capitalize on this trend might consider increasing their allocation to small-cap funds or individual small-cap stocks, balancing their portfolios with these high-growth opportunities.
As we move into the latter half of 2024, small-cap stocks may have the potential to outperform, highlighting that market size isn&#8217;t always the key factor in investing.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/08/40447799/small-caps-soar-3-russell-2000-stocks-doubling-investor-wealth-in-2024">Small Caps Soar: 3 Russell 2000 Stocks Doubling Investor Wealth In 2024</a></li>
</ul>
Don't miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference on Oct. 9-10, 2024</a>, at the Chicago Marriott Downtown Magnificent Mile.
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you're a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders.
<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Secure your spot and get your tickets today</a>!
Image created using artificial intelligence via Midjourney.

Small Caps Set To 'Lead Their Large Cap Brothers' For Rest Of 2024, Says Market Strategist

GameStop Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>), the owner of one of the last remaining gaming magazines, announced the shutdown of Game Informer after 33 years of publication.
The company proposed to downsize the entire magazine staff, the Verge <a target="_blank" href="https://www.theverge.com/2024/8/2/24212016/game-informer-shutting-down-layoffs-gamestop" rel="noreferrer noopener">cites</a> Kotaku.
Game Informer did not provide a specific reason for the closure in a statement posted on X.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/40027424/gamestop-short-seller-and-citron-founder-andrew-left-pleads-not-guilty-to-fraud-charges" rel="noreferrer noopener">GameStop Short Seller And Citron Founder Andrew Left Pleads Not Guilty To Fraud Charges</a>
In 2023, GameStop CEO and chairman Ryan Cohen emphasized the need to scrutinize every expense and eliminate waste, the Verge cites an email obtained by Kotaku.
Game Informer introduced a direct subscription model in March, previously available only through GameStop Pro subscriptions or individual purchases.
Editor-in-chief Matt Miller acknowledged industry challenges in a blog post. This post has since been replaced with the shutdown message.
<a target="_blank" href="https://www.benzinga.com/news/24/06/39502437/whats-going-on-with-gamestop-stock-on-wednesday" rel="noreferrer noopener">Analysts criticized GameStop&#8217;s</a> business model. However, experts anticipated support from the company&#8217;s strong cash position and upcoming video game console releases from Sony Group Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>), Nintendo, and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
Investors can gain exposure to GameStop through iShares Core S&amp;P Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJH#NYSE">IJH</a>) and Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>).
Price Action: GME shares were trading lower by 12.01% at $18.55 premarket at the last check on Monday.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39831371/chewy-founder-gamestop-ceo-ryan-cohen-posts-trump-665-times-on-elon-musks-x-cryptic-message-has-" rel="noreferrer noopener">Chewy Founder, GameStop CEO Ryan Cohen Posts&#8217; TRUMP&#8217; 665 Times On Elon Musk&#8217;s X: Cryptic Message Has Internet Guessing</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy 1take1shot On Shutterstock.com

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GameStop Shuts Down Game Informer Magazine, Lays Off Entire Staff: Report

Investors are increasingly bullish on small-cap stocks, driven by optimistic projections for the interest-rate-sensitive segment of the market to thrive as the market approaches the onset of a <a href="https://www.benzinga.com/topic/interest-rates">Federal Reserve rate cut cycle.</a>
July has been a pivotal month, as small caps significantly outperformed large caps, especially in the tech sector, which dominated during the nearly two-year bull market.
The Russell 2000 index has surged nearly 9% month-to-date compared to a 3.6% decline for the tech-heavy Nasdaq 100 as of July 25.
The performance gap of nearly 13 percentage points in favor of the Russell 2000 over tech marks the best month for the &#8220;long small cap, short tech&#8221; trade since April 2002, highlighting the strength and speed of the ongoing market rotation.
<h3 class="wp-block-heading">Chart: It&#8217;s The Best Month In Over 2 Decades For The &#8216;Long Russell 2000, Short Nasdaq 100&#8217; Trade</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="487" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25153006/image-43-1024x487.png" alt="" class="wp-image-457807" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25153006/image-43-1024x487.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25153006/image-43-300x143.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25153006/image-43-768x365.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25153006/image-43-1536x730.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25153006/image-43.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Strong Inflows Into Small-Cap ETFs</h3>
The impressive performance of small-cap stocks has been mirrored by significant inflows into major small-cap-focused ETFs. 
The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), one of the largest ETFs tracking the U.S. small-cap index, saw over $6 billion in net inflows this month, marking the highest influx of 2024 to date, according to data from Etfdb.com.
Several other small-cap ETFs have also drawn considerable investor funds this month:
<ul>
<li>iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>): $645 million in net inflows</li>
<li>Avantis U.S. Small Cap Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVUV#NYSE">AVUV</a>): $553.28 million in net inflows</li>
<li>Invesco S&amp;P SmallCap Momentum ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSMO#NYSE">XSMO</a>): $350 million in net inflows</li>
<li>SPDR Portfolio S&amp;P 600 Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPSM#NYSE">SPSM</a>): $188 million in net inflows</li>
</ul>
Year-to-date, the Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) and the Pacer US Small Cap Cash Cows 100 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CALF#NYSE">CALF</a>) have attracted the most investor money, with $3.1 billion and $2.9 billion, respectively.
<h3 class="wp-block-heading">A Different Perspective</h3>
Despite the strong performance of the Russell 2000 index and the substantial inflows into small-cap ETFs, some experts urge caution.
&#8220;Investors and analysts are hopeful that the end of the Federal Reserve's tightening cycle will bring better days for smaller companies, particularly those that rely on debt to fund operations. We're not convinced,&#8221; said veteran Wall Street investor Ed Yardeni in a note.
Larger companies, especially in the technology sector, possess advantages that smaller firms cannot easily replicate, he said. 
For instance, major tech firms are sitting on significant cash reserves, enabling them to fund substantial capital expenditures and R&amp;D budgets, maintaining their competitive edge.
To give some examples, Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) sits on a stockpile of cash equalling $111 billion at the end of last quarter. Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) have cash reserves of $87 billion and $80 billion, respectively.
Their financial flexibility allows for strategic acquisitions of smaller companies with important new technology or business lines. Microsoft&#8217;s $10-billion investment in OpenAI, the developer of ChatGPT, last year exemplifies this capability.
Yardeni suggests the fastest-growing, highest-potential companies may have already partnered with large-cap firms or private equity investors.
&#8220;That, of course, implies that the laggards are left to trade in the S&amp;P 400 and S&amp;P 600—suggesting that investors will return to larger-cap alternatives sooner rather than later,&#8221; he said.
Read Now:
<ul>
<li><a href="https://www.benzinga.com/government/24/07/39867425/contrarian-analyst-turns-to-bonds-ahead-of-fed-rate-cuts-presidential-election-maybe-tariffs-deflati">Contrarian Analyst Turns To Bonds Ahead Of Fed Rate Cuts, Presidential Election: &#8216;Maybe Tariffs Deflationary Not Inflationary&#8217;</a></li>
</ul>
Interested in learning more about small-cap stocks and ETFs? Then you don't want to miss Benzinga Small Cap Conference, Oct. 10 in Chicago. <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Click here</a> for more information.
Photo created using artificial intelligence via MidJourney.

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Investors Go All In On Small Caps, Pour Over $6 Billion Into Russell 2000 ETF This Month: They 'Will Return To Larger-Cap Alternatives,' Veteran Analyst Says

Affirm Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AFRM#NASDAQ">AFRM</a>) faces regulatory changes as the Consumer Financial Protection Bureau (CFPB) plans to extend credit card protections to the &#8220;buy now, pay later&#8221; (BNPL) industry.
The CFPB&#8217;s interpretive rule, effective July 30, mandates that BNPL firms offer dispute resolution, refunds for canceled purchases, and regular billing statements similar to those required for credit card customers.
A trade group representing BNPL companies, including Affirm, has requested a delay in implementing the rule, which aims to align consumer protections across financial sectors, Bloomberg Law <a target="_blank" href="https://news.bloomberglaw.com/banking-law/buy-now-pay-later-providers-seek-more-prep-time-for-cfpb-rule" rel="noreferrer noopener">reports</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39736107/why-affirm-stock-is-trading-higher-on-thursday" rel="noreferrer noopener">Affirm Partners with RONA to Offer Buy Now, Pay Later Options in Canada</a>
Affirm Holdings, which gained 88% in the last 12 months, has had its share of challenges this year.
Earlier in July, <a target="_blank" href="https://www.benzinga.com/news/24/07/39594082/affirm-card-users-data-compromised-in-evolve-bank-cybersecurity-breach-report" rel="noreferrer noopener">the company disclosed</a> a cybersecurity breach, stemming from an incident at Evolve Bank and Trust in Arkansas.
The personal information of Affirm card users was compromised and appeared on the dark web following the breach last week. Evolve Bank confirmed the incident with Reuters but assured them Affirm&#8217;s systems remained secure.
Investors can gain exposure to Affirm Holdings through Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) and Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>).
<h2 class="wp-block-heading">AFRM Stock Prediction For 2024</h2>
An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages &#8211; like <a href="https://www.benzinga.com/quote/AFRM">Affirm Holdings</a>&#8216;s page for example &#8211; there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.
These are known as capital allocation programs. Affirm does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's <a href="https://www.benzinga.com/calendars/dividends">dividend calendar</a> for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.
For example, if you're looking to earn an annualized return of 12.72%, you'll need to buy a share of Dynex Cap by the Jul. 23, 2024. Once done, you can expect to receive a nominal payout of $0.13 on Aug. 1, 2024.
Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on <a href="https://www.benzinga.com/quote/AFRM">Affirm Holdings</a> will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.
Price Action: AFRM shares were trading higher by 1.53% at $32.59 at&nbsp;the last check on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Company

Government

Regulations

AFRM

Affirm Faces Regulatory Shake-Up with New CFPB Rules

Lighting and building management firm&nbsp;Acuity Brands, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AYI#NYSE">AYI</a>)&nbsp;reported a fiscal third-quarter 2024 net sales decline of 3.2% year-over-year to $968.1 million, missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/g39519517/acuity-brands-reports-fiscal-2024-third-quarter-results" rel="noreferrer noopener">analyst consensus estimate of $1.01 billion</a>.&nbsp;
It clocked an adjusted EPS of $4.15, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $4.13</a>.
Sales by segments: Acuity Brands Lighting (ABL) and Lighting Controls revenue hit $898.5 million (-4.5% Y/Y), and Intelligent Spaces Group (ISG) clocked $75.7 million (+15.0% Y/Y).
The consolidated adjusted operating margin grew by 100 bps to 17.3%. ABL&#8217;s adjusted operating margin expanded by 100 bps to 18.0%. ISG's margin increased by 340 bps to 22.9%.
The company generated $445.1 million in operating cash flow for the first nine months of fiscal 2024, a decrease of $26.4&nbsp;million compared to the prior year.
Adjusted EBITDA was $180.0 million, up from $175.6 million a year ago.&nbsp;The margin expanded by 100 bps to 18.6%.
Acuity Brands stock gained over 48% in the last 12 months. Investors can gain exposure to the stock via iShares Core S&amp;P Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJH#NYSE">IJH</a>) and Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>).
Price Action: AYI shares are down 0.73% at $238.01 premarket at the last check Thursday.
Image Credits &#8211; Shutterstock

Earnings

Acuity Brands' Intelligent Spaces Revenue Soars 15% in Mixed Q3 Results

GameStop Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) is experiencing a challenging period in its core business of selling video games and related merchandise.
However, its strategy of earning interest on large cash reserves has provided some financial relief, transforming it into something resembling a bank rather than a traditional retailer.
After a dramatic rise in its stock value in early 2021, GameStop&#8217;s shares have since dropped to $23 each, giving the company a market capitalization of around $8 billion, Reuters reports.
Despite this decline, the company&#8217;s enterprise value is more than double that of Best Buy Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBY#NYSE">BBY</a>), whose sales are also declining but at a slower rate.
Despite the efforts to stabilize its finances, GameStop has kept its business model the same.
GameStop&#8217;s growing cash reserves provide a crucial buffer. If the company maintains its current operating cash burn rate, it could sustain itself for another decade, Reuters noted.
Additionally, by investing its $3 billion cash pile in U.S. treasuries yielding around 5%, GameStop could earn nearly $40 million in interest each quarter, offering a significant financial boost despite its declining core business.
In many ways, GameStop functions like a bank, utilizing cash reserves to generate income rather than relying solely on its traditional retail operations.
<a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39408371/whats-going-on-with-gamestop-stock-thursday" rel="noreferrer noopener">Analysts had criticized</a> the company&#8217;s business model. However, experts anticipated that the company&#8217;s strong cash position and new video game console releases from Sony, Nintendo, and Microsoft would provide support.
Investors can gain exposure to GameStop via iShares Core S&amp;P Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJH#NYSE">IJH</a>) and Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>).
Price Action: GME shares traded lower by 1.65% at $24.52 premarket at the last check on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy 1take1shot On Shutterstock

What's Going On With GameStop Stock On Wednesday?

Affirm Holdings, Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AFRM#NASDAQ">AFRM</a>) stock lost 17% this week as reports indicated Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) plans to dump its <a href="https://www.benzinga.com/news/24/06/39365415/whats-going-on-with-affirm-holdings-stock-monday'" target="_blank" rel="noreferrer noopener">Apple Pay Later service</a>. 
The company is trading lower by over 2% at last check Thursday.
What Happened: Apple&#8217;s Pay Later program allows customers to make purchases on an installment plan. The company announced on Monday that it would no longer offer loans for Apple Pay Later, which enabled users to pay off purchases up to $1,000 over four installments. This move comes as Apple <a href="https://www.benzinga.com/markets/equities/24/06/39272106/affirm-soars-after-apple-partnership-announcement-what-it-means-for-users" target="_blank" rel="noreferrer noopener">integrates third-party services</a> like Affirm and Citigroup Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) into its upcoming iOS 18 software, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-06-17/apple-shutting-down-pay-later-its-affirm-rival-after-one-year?sref=TBDibEcD" target="_blank" rel="noreferrer noopener">reports</a>.
Starting later this year, users worldwide can access installment loans through credit and debit cards and lenders when checking out with Apple Pay.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39187900/affirms-new-deal-with-alterra-mountain-company-boosts-travel-spending" rel="noreferrer noopener">Affirm&#8217;s New Deal With Alterra Mountain Company Boosts Travel Spending</a>
Why It Matters: Apple launched its Pay Later program in the U.S. last year using an in-house platform, issuing loans to customers via a new subsidiary. It relied on Goldman Sachs Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) and MasterCard Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>) to help handle the process.
Analysts <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39297152/apple-mastercards-move-have-raised-the-competition-for-paypal-bofa-analyst" rel="noreferrer noopener">had flagged how</a> Apple&#8217;s new &#8220;Tap to Cash&#8221; and Affirm&#8217;s integration with Apple Pay added pressure to PayPal&#8217;s Venmo and checkout services.
Affirm stock gained over 85% in the last 12 months. Investors can gain exposure to the stock via Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) and Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>).
Price Action: AFRM shares were trading lower by 2.42% at $29.80 at&nbsp;the last check Thursday.
Also Read: <a href="https://www.benzinga.com/news/24/06/39230874/bnpl-company-affirm-launches-new-payment-options-to-boost-flexibility" target="_blank" rel="noreferrer noopener">BNPL Company Affirm Launches New Payment Options To Boost Flexibility</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock

AAPL

What's Going On With Affirm Stock Thursday?

RBC Capital analysts are urging caution with U.S. small-cap stocks, saying it&#8217;s best to &#8220;stay on the sidelines for now.&#8221; In a note, the investment bank highlighted a less promising near-term outlook for small caps, <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis">citing several factors</a>.
<figure class="wp-block-image size-full"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="633" height="458" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/18105114/Screenshot-2024-06-18-at-8.20.47-PM.png" alt="" class="wp-image-393716" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/18105114/Screenshot-2024-06-18-at-8.20.47-PM.png 633w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/18105114/Screenshot-2024-06-18-at-8.20.47-PM-300x217.png 300w" sizes="(max-width: 633px) 100vw, 633px" /></a></figure>
<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">Chart: Benzinga Pro</a>
Related: <a href="https://www.benzinga.com/news/24/06/39357591/as-small-caps-lag-20-behind-s-p-500-reddit-user-says-market-cap-definitions-should-really-be-readjus">As Small Caps Lag 20% Behind S&amp;P 500, Reddit User Says Market Cap Definitions &#8216;Should Really Be Readjusted For Inflation&#8217;</a>
<h1 class="wp-block-heading">RBC: Decoupling Is Underway, Neutral For Now</h1>
The continued outperformance of mega-cap growth stocks has been logical but somewhat jarring to RBC, especially as Treasury yields have declined, historically benefiting small caps. However, RBC suggests a decoupling is underway, as <a href="https://in.investing.com/news/stock-market-news/rbc-too-early-to-turn-bullish-on-us-small-caps-4257423">reported</a> by the website Investing.
Factors contributing to the outsized performance of large-cap growth stocks (making it more attractive) include:
<ul>
<li>Slowing GDP forecasts,</li>
<li>More positive recent earnings revisions</li>
<li>Reduced crowding in the large-cap growth sector</li>
</ul>
Despite acknowledging the recent weakness in small caps, RBC remains neutral on the sector relative to large caps. 
The company recognizes the historically favorable positioning of small caps based on investor sentiment and valuation metrics. However, RBC cautions these factors are outweighed by the lack of fundamental tailwinds and negative earnings revision trends for small caps.
RBC suggests a wait-and-see approach, stating, &#8220;We see enough that looks interesting to stay neutral for now and think that when it&#8217;s finally time to put on Fed rate cut trades this space will do well.&#8221;
<h1 class="wp-block-heading">UBS: Strong Potential For Small Caps, Expect Outperformance In Near Term</h1>
On the other hand, UBS analysts are more optimistic about the potential for small-cap stocks in the coming months. They predict strong potential for small caps, citing a historical correlation between small-cap performance and Treasury yields, as <a href="https://in.investing.com/news/stock-market-news/ubs-small-caps-to-outperform-over-the-near-term-432SI-4260840">reported</a> by Investing.
Over the past year, small-cap stocks have outperformed when Treasury yields have declined, notes UBS. Conversely, small caps have underperformed during periods of rising yields. Historically, when this relationship deviates, a correction quickly follows.
UBS points to a significant outperformance of small caps in early February following a disconnect, similar to the current situation where large caps are outperforming despite falling interest rates since May.
&#8220;This represents the potential for mid- to high-single-digit small-cap outperformance over the near term,&#8221; concludes UBS, suggesting a significant upswing for small-cap stocks in the near future.
For investors seeking diversified exposure to small cap equity, the iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>), the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and the Vanguard Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) are popular ways.
<hr class="wp-block-separator has-alpha-channel-opacity" />
Don't miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference</a>&nbsp;on Oct. 9-10, 2024, at the Chicago Marriott Downtown Magnificent Mile. 
Get exclusive access to CEO presentations, 1:1 meetings with investors and valuable insights from top financial experts. Whether you're a trader, entrepreneur or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!
Read Next: <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis/24/06/39381483/worried-about-market-volatility-benzingas-smallcap-event-has-answers">Worried About Market Volatility? Benzinga&#8217;s SmallCAP Event Has Answers</a>
Photo: Shutterstock

'Stay On The Sidelines With Small Caps For Now,' Says RBC — But UBS Sees Brighter Days Ahead

PayPal Holdings, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>) co-founder Max Levchin founded fintech company Affirm Holdings, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AFRM#NASDAQ">AFRM</a>) collaborated with Brittain Resorts &amp; Hotels to offer flexible <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/b39290640/brittain-resorts-hotels-selects-affirm-as-exclusive-pay-over-time-partner-to-bring-hotel-guests-a-" rel="noreferrer noopener">payment options for</a> hotel guests.
Now, guests at over 15 hotels and resorts can book and pay over time using Affirm when making purchases over $150.
The guests can split the sum into monthly payments for up to 18 months, with transparent pricing and no hidden or late fees.
For example, a $1,000 purchase can be broken down into $64.76 per month at a 20% APR.
Pat Suh, Affirm&#8217;s SVP of Revenue, reported a 35% growth in travel and ticketing transactions through Affirm in the last quarter, emphasizing the demand for such flexible payment solutions.
Affirm&#8217;s network includes significant retailers like Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Casper, and American Airlines Group, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>).
Affirm stock already <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39272106/affirm-soars-after-apple-partnership-announcement-what-it-means-for-users" rel="noreferrer noopener">received a boost</a> following an announcement that its payment products will soon be available to Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) Apple Pay users in the U.S.
Users can apply Affirm&#8217;s pay-over-time option when checking out online or in-app with Apple Pay on iPhones and iPads.
Analysts flagged significant GMV generated by the Affirm Card, which now boasts over a million active cardholders and is expanding into traditionally non-addressed categories like restaurants and groceries after the company&#8217;s third-quarter print.
Affirm Holdings stock gained over 106% in the last 12 months. Investors can gain exposure to the stock via Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) and Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>).
Price Action: AFRM shares are trading higher by 6.04% to $35.84 at last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Company

PYPL

What's Going On With Fintech Company Affirm Holdings Stock On Wednesday?

AMC Entertainment Holdings, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMC#NYSE">AMC</a>) stock is trading lower Friday, like other popular retail trader stocks, also called the &#8216;meme stocks,&#8217; in sympathy with GameStop Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>).
GameStop reported worse-than-expected <a target="_blank" href="https://www.benzinga.com/news/earnings/24/06/39224137/gamestop-releases-q1-results-ahead-of-roaring-kitty-event-files-prospectus-to-raise-capital-via-equ" rel="noreferrer noopener">first-quarter earnings</a> and filed a prospectus to sell up to 75 million shares to raise capital.
AMC Theatres said it offers eight ways to save money on movie tickets this summer. Ellen Copaken, Senior Vice President of Marketing, highlighted various discounts and programs to make movies more <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/b39223629/amc-theatres-offers-movie-lovers-eight-ways-to-save-at-the-movies-this-summer" rel="noreferrer noopener">affordable and accessible</a>.
Discount Tuesday provides AMC Stubs members with significant savings on tickets every Tuesday. Matinee Pricing offers 25% off tickets before 4 p.m. every day.
AMC Summer Movie Camp lets parents and kids watch classics for just $3 per ticket on Mondays and Wednesdays.
AMC Stubs A-List allows members to see up to 3 movies a week in any format for $19.95 per month.
AMC Stubs Premiere offers benefits like waived online ticket fees and free size upgrades for $15 per year.
AMC Screen Unseen features new films for $5, while AMC Fan Faves offers $5 tickets for select movies. Additionally, moviegoers can purchase AMC gift cards and movie subscriptions as gifts.
AMC Entertainment stock lost over 86% in the last 12 months. Investors can gain exposure to the stock via Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) and Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>).
In May, The Bear Cave&#8217;s Edwin Dorsey <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38876672/amc-entertainment-a-dead-company-walking-says-bear-cave-report" rel="noreferrer noopener">issued a bearish report</a> on AMC Entertainment, criticizing its lack of fundamental investment appeal by being &#8220;consistently unprofitable, deeply indebted, and highly dilutive.&#8221;
Price Action: AMC shares traded lower by 10.50% at $5.18 premarket at the last check on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

What's Going On With AMC Entertainment Holdings On Friday?

As the three major bourses are hovering near record highs, investors are rotating to areas like utility and the small-caps, which are cheap and undervalued. These zones have outperformed in May. 
The Utilities Select Sector SPDR Fund emerged as the top performer among the 11 SPDR ETFs tracking the S&amp;P 500 sectors. It rose nearly 9% last month, logging its largest monthly gain since March 2022, according to FactSet data. Meanwhile, small-cap stocks, as tracked by the Russell 2000 Index, surpassed the S&amp;P 500 and the Dow Jones with a 4.9% monthly gain. It was the small-cap&#39;s best month since February. 
Investors seeking to tap these hottest zones of the stock market could consider ETFs in these spaces. While there is a long list, we have highlighted the five most popular options from these zones. These include Utilities Select Sector SPDR Fund (ARCA:XLU), Vanguard Utilities ETF (ARCA:VPU), iShares Core S&amp;P Small-Cap ETF (ARCA:IJR), iShares Russell 2000 ETF (ARCA:IWM), and Vanguard Small-Cap ETF (ARCA:VB). 
Here, we have cited the reasons for their strong performance. The trend is likely to continue in the weeks ahead.
<h3>Utility</h3>
The utility sector, which tends to outperform when the economy is in a downturn, is making the most of the current volatility and uncertainty triggered by the timing of the Fed rate cuts, slowing economy and geopolitical tension. Being a low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus considered a defensive investment or safe haven amid economic or political turmoil. 
Additionally, rising demand for electricity driven by artificial intelligence chips and software has made the traditional defensive sector of the market most appealing.
<h3>Small-Caps</h3>
Small-cap stocks are also considered safer and better plays if political issues or economic turmoil creep into the picture, as the pint-sized stocks generate most of their revenues from the domestic market. The latest survey from the National Federation of Independent Business revealed that small business optimism rebounded 1.2 points from the lowest level since December 2012 to 89.7 in April. 
Small-cap stocks seem attractively valued. According to the recent analysis by the firm&#39;s senior US market strategist, Dave Sekera, &quot;small-cap stocks trade at an 18% discount to fair value, making them the cheapest US asset class across the Morningstar Style Box.&quot; 
Further, the artificial intelligence craze holds the promise of ushering in fresh opportunities for growth. While mega-cap companies are leading the AI world, many small-cap stocks having huge potential in this field remain untapped. According to a new report by Grand View Research, the global artificial intelligence market is expected to witness a CAGR (2024-2030) of 36.6% to reach $811.75 billion by 2030.
<h3>ETFs in Focus</h3>
Utilities Select Sector SPDR 
With an AUM of $14 billion, Utilities Select Sector SPDR seeks to provide exposure to companies from the electric utility, water utility, multi-utility, independent power and renewable electricity producers, and gas utility industries. It follows the Utilities Select Sector Index, holding 31 stocks in its basket. Electric utilities take the top spot among sectors at 65.9%, closely followed by multi utilities (25.9%). Utilities Select Sector SPDR charges 9 bps of annual fees and sees a heavy volume of 13.5 million shares, on average. It has a Zacks ETF Rank #3 (Hold). 
Vanguard Utilities ETF 
Vanguard Utilities ETF follows the MSCI US Investable Market Utilities 25/50 Index, holding 65 securities in its basket, with none accounting for more than 12.4% share. About 62.4% of the portfolio is allocated to electric utilities, closely followed by multi utilities (25.3%). Vanguard Utilities ETF charges 10 bps in annual fees and sees a good volume of around 171,000 shares on average. It has AUM of $5.7 billion and a Zacks ETF Rank #3. 
iShares Core S&amp;P Small-Cap ETF 
iShares Core S&amp;P Small-Cap ETF offers exposure to U.S. small-cap stocks and follows the S&amp;P SmallCap 600 Index. It holds 681 stocks in its basket, with none accounting for more than 2% of the assets. Financials, industrials, consumer discretionary, information technology and healthcare are the top five sectors with double-digit exposure each. iShares Core S&amp;P Small-Cap ETF has AUM of $78.5 billion and trades in an average daily volume of 3 million shares. The product charges investors 6 bps in annual fees. 
iShares Russell 2000 ETF 
iShares Russell 2000 ETF is the largest and most popular ETF in the small-cap space, with an AUM of $59 billion and an average daily volume of 27 million shares. iShares Russell 2000 ETF holds well-diversified 1,937 stocks in its basket and has key holdings in industrials, financials, information technology, healthcare and consumer discretionary. iShares Russell 2000 ETF charges 19 bps in annual fees and has a Zacks ETF Rank #2 (Buy). 
Vanguard Small-Cap ETF 
Vanguard Small-Cap ETF follows the CRSP US Small Cap Index and holds a basket of 1,417 stocks, with none holding more than 0.5% of assets. Vanguard Small-Cap ETF is widely spread across various sectors, with industrials, consumer discretionary, financials, information technology and healthcare being the top five. Vanguard Small-Cap ETF has AUM of $55.3 billion and trades in a solid average daily volume of about 562,000 shares. VB charges 5 bps in fees per year from investors.
<a href="https://www.zacks.com/stock/news/2283438/leverage-the-power-of-utilities-small-caps-with-these-etfs?cid=CS-BENZ-FT-etf_news_and_commentary-2283438">To read this article on Zacks.com click here.</a>

Leverage the Power of Utilities & Small-Caps With These ETFs

Firebrand Republican Congresswoman&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38348258/marjorie-taylor-greene-takes-step-back-in-effort-to-remove-speaker-mike-johnson-but-blasts-him-as-a" rel="noreferrer noopener">Marjorie Taylor Greene</a>&nbsp;(R-GA) made headlines Thursday&nbsp;with a disclosure of&nbsp;her latest financial transactions.
What Happened: Greene&#8217;s filing on Thursday marks her first periodic transaction report since June 2022, adhering to the &#8220;Stock Trading on Congressional Knowledge Act.&#8221; This act mandates U.S. lawmakers to publicly disclose financial transactions within 45 days of occurrence, typically within a value range.
All transactions occurred on either April 25 or 26.
The details of Greene&#8217;s transactions are as follows:
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Company</td>
<td>Value Range</td>
</tr>
<tr>
<td>Berkshire Hathaway, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>Goldman Sachs Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>The Home Depot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>Schwab US Large-Cap Growth Idx (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SWLGX#NASDAQ">SWLGX</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>The Hershey Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSY#NYSE">HSY</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>Tractor Supply Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSCO#NASDAQ">TSCO</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>US Treasury Bill</td>
<td>$250,001-$500,000</td>
</tr>
<tr>
<td>Vanguard FTSE Developed Markets Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>Vanguard Mid-Cap Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VO#NYSE">VO</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td>
<td>$15,001-$50,000</td>
</tr>
<tr>
<td>Vanguard Small-Cap Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>)</td>
<td>$1,001-$15,000</td>
</tr>
</tbody>
</table>
</figure>
Sale transactions:
<ul>
<li>iShares Core MSCI Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EMG#NYSE">EMG</a>): $1,001-$15,000 </li>
<li>iShares Core MSCI Total International Stock ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IXUS#NASDAQ">IXUS</a>): $1,001-$15,000 </li>
<li>iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>): $1,001-$15,000)</li>
<li>iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>): $1,001-$15,000)</li>
<li>iShares Core S&amp;P U.S. Growth ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IUSG#NASDAQ">IUSG</a>): $1,001-$15,000)</li>
</ul>
All the exchange-traded funds were part of mutual funds held in Greene&#8217;s managed IRA account.
See Also: <a href="https://www.benzinga.com/money/how-to-invest-in-startups">How To Invest In Startups</a>
No DJT Trades: Greene, an ardent backer of Republican Presidential candidate Donald Trump, incidentally did not do any new transaction in Trump Media &amp; Technology Group Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>), the former president&#8217;s media company that <a href="https://www.benzinga.com/markets/equities/24/03/37963370/trumps-djt-stock-is-worth-52x-more-than-nvidia-by-1-data-point">came public in late March following its merger with SPAC Digital World Acquisition.</a>
The stock is down about 16% since its public debut.
When Digital World Acquisition announced its decision with Trump Media &amp; Technology Group in 2021, Green was the first Congress member to invest in the SPAC. She then reported that she along with her then-husband Perry Greene bought $15,001-$50,000 worth of the SPAC&#8217;s shares
Greene hasn&#8217;t disclosed any sale of the stock since then.
The stock market has been on a tear this year despite the headwinds. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), an ETF that tracks the broader S&amp;P 500 Index, rose 0.34% to $506.74, in premarket trading, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data. </a>It has gained over 6.5% so far this year.
Read Next: <a href="https://www.benzinga.com/news/earnings/24/05/38609896/wall-street-looks-to-feed-off-apples-post-earnings-power-but-key-jobs-data-may-upset-the-cart-analy">Wall Street Looks To Feed Off Apple&#8217;s Post-Earnings Power But Key Jobs Data May Upset The Cart: Analyst Says &#8216;A Lot Of These Clouds Will Lift&#8217; If This Happens</a>

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Marjorie Taylor Greene Reveals New Stock Trades After 2-Year Gap: Berkshire Hathway, Goldman Sachs And Microsoft Make The List — But Trump's DJT Doesn't

Count <a href="https://apolloacademy.com/author/tslokapollo-com/">Torsten Sløk</a>, chief economist at Apollo Global Management (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APO#NYSE">APO</a>) as a skeptic of the artificial intelligence (AI) hype behind much of the recent stock market rally.
In a note published over the weekend titled "The Current AI Bubble is Bigger than the 1990s Tech Bubble," <a href="https://apolloacademy.com/author/tslokapollo-com/">Sløk</a> writes that the top 10 companies in the S&amp;P 500 today have a higher forward price-to-earnings (P/E) ratio than the top 10 companies had in the mid-1990s during the tech bubble.
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A forward price-to-earnings ratio is a valuation metric that divides the current share price by the estimated next year's earnings per share. A lower ratio means that a stock is cheaper, all else being equal.
The median forward P/E ratio of the top 10 companies in the S&amp;P today is around 40, while in 2000, at the peak of the tech bubble, the same metric was relatively much lower at only about 25.
It's not the first time Apollo Global's leading economist flagged valuation concerns among the market's largest companies.
Trending: Fortnite&#8217;s creator company<a href="https://www.benzinga.com/money/epic-games"> greenlights partial ownership for up to 100 accredited investors</a> in the upcoming series.
In a note published on Jan. 9, Apollo pointed out that the market cap of the Magnificent Seven equaled the size of the Japanese, Canadian and U.K. markets combined.
Just because a company has a high forward price-to-earnings ratio does not mean it will live up to its growth expectations. It's just that investors are leaving less margin of safety for any possible growth disappointments.&nbsp;
Extra risk market concentration brings more risk if one or more of these high flyers cannot live up to its growth targets.
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) tracks the S&amp;P 500 index, a market cap-weighted index of large- and mid-cap U.S. stocks.
The top 10 holdings of the SPDR ETF account for over 31% of its total assets, leaving passive index investors potentially more exposed to concentration risk than they might realize.
Whether or not the AI bubble bursts or lives up to its high expectations is a question investors will have to tackle in the years to come. However, for those skeptical of valuations or market concentration, it might pay to remember the lessons from economist John Maynard Keynes, who shared that markets can stay irrational for longer than an investor can stay solvent.
Investors who have ridden the AI wave up have been rewarded. The S&amp;P 500, led by its big tech components, is already up over 7% year to date. Meanwhile, small-cap exchange-traded funds (ETFs) without the major AI players, such as the Vanguard Small-Cap Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>), have lagged, gaining just over 2% year to date.
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Apollo's Chief Economist Sounds Alarm On AI Bubble, Warning It's 'Bigger Than The 1990s Tech Bubble'

Small-cap exchange-traded funds (ETFs) have witnessed their largest weekly inflows since Bank of America began tracking <a href="https://www.benzinga.com/topic/small-caps">the data in 2017.</a> 
According to a note shared Wednesday, this surge is predominantly fueled by retail investors, marking a significant shift in market dynamics. 
Over the past 23 weeks, 22 have seen positive inflows, culminating in a record-breaking week that attracted over $3.5 billion into small-cap ETFs.
Data derived from Tradingview shows that the Pacer US Small Cap Cash Cows ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CALF#NYSE">CALF</a>) has emerged as a frontrunner, drawing in over $3 billion in the last three months, closely followed by the Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) with $2.6 billion of inflows, of which $1.615 billion recorded in the last month alone. 
Despite this record influx of funds, Bank of America highlights that small caps remain undervalued relative to their historical performance.
Top 10 Small-Cap ETF By Inflows Over The Last Three Months
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Small-Cap ETF </td>
<td>1M Flows</td>
<td>3M Flows</td>
</tr>
<tr>
<td>Pacer US Small Cap Cash Cows </td>
<td>1.194B </td>
<td>3.096B</td>
</tr>
<tr>
<td>Vanguard Small-Cap ETF </td>
<td>1.615B </td>
<td>2.608B</td>
</tr>
<tr>
<td>iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>)</td>
<td>116.003M </td>
<td>1.651B</td>
</tr>
<tr>
<td>Avantis U.S. Small Cap Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVUV#NYSE">AVUV</a>)</td>
<td>695.473M </td>
<td>1.646B</td>
</tr>
<tr>
<td>Vanguard Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTWO#NYSE">VTWO</a>)</td>
<td>750.154M </td>
<td>1.411B</td>
</tr>
<tr>
<td>SPDR Portfolio S&amp;P 600 Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPSM#NYSE">SPSM</a>)</td>
<td>417.995M</td>
<td>915.308M</td>
</tr>
<tr>
<td>Vanguard Small-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VBK#NYSE">VBK</a>)</td>
<td>440.327M</td>
<td>741.54M</td>
</tr>
<tr>
<td>Schwab U.S. Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHA#NYSE">SCHA</a>)</td>
<td>520.145M </td>
<td>622.329M</td>
</tr>
<tr>
<td>Dimensional U.S. Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFAS#NYSE">DFAS</a>)</td>
<td>131.079M</td>
<td>507.818M</td>
</tr>
<tr>
<td>SSGA SPDR ETFS EUROPE II PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SSEUF#NYSE">SSEUF</a>)</td>
<td>184.185M</td>
<td>484.932M</td>
</tr>
</tbody>
</table>
</figure>
<h2 class="wp-block-heading">Small Caps: A Bullish Outlook For 2024</h2>
Bank of America&#8217;s analysis suggests a turning tide for small caps. Analyst Jill Carey Hall, CFA, maintains a bullish outlook, predicting that 2024 could mark the year when small caps outperform large caps for the first time in nearly a decade. 
This optimism stems from a resilient small-cap sector, which has priced in a recession that has yet to materialize, as evidenced by the Russell 2000&#8217;s performance.
With investor sentiment improving and valuations becoming more attractive, small caps present a compelling opportunity for long-term investors. The Russell 2000&#8217;s forward P/E ratio has dipped to 14.3x, positioning small caps as the only size segment that is historically inexpensive. 
According to Bank of America, the valuation gap between small and large caps is reminiscent of the disparity seen during the Tech Bubble, which preceded a decade of exceptional returns for small caps.
Bank of America&#8217;s analysis implies potential annualized returns of 10% over the next decade for the Russell 2000, compared to a modest 3% for the Russell 1000.
For 2024, Bank of America reinforces the strategy of focusing on value within the small and mid-cap spaces. This approach favors high-quality stocks over non-earners. Financials, Communication Services, and Industrials are identified as top sector overweights within small caps. 
Read Now: <a href="https://www.benzinga.com/money/best-small-cap-stocks">Best Small Cap Stocks Right Now</a>
Photo: Shutterstock

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