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The Zacks Analyst Blog Highlights: SPHB, RFV, RZV, ENTR and VFVA

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For Immediate Release

 

Chicago, IL –November 12, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Invesco S&P 500 High Beta ETF SPHB, Invesco S&P MidCap 400 Pure Value ETF RFV, Invesco S&P SmallCap 600 Pure Value ETF RZV, ERShares Entrepreneur 30 ETF ENTR and Vanguard U.S. Value Factor ETF VFVA.

Here are highlights from Monday’s Analyst Blog:

5 High-Beta ETFs for a Record Market

Wall Street has been roaring higher with all the three major indices hitting record highs last week. The momentum was driven by trade deal optimism and better-than-expected earnings.

In the latest trade development, the United States agreed to remove tariffs in phases and Beijing is also considering removing restrictions on poultry imports. Per Bloomberg News, the first agreement between the superpowers will be signed in the next few weeks. Meanwhile, of the 403 S&P members that reported Q3 results, 73% of the companies beat EPS estimates and 58.1% beat on revenues. The proportion of these companies beating EPS and revenue estimates is in the historical range.

Additionally, monetary easing policy is also driving the stocks higher. The Fed slashed interest rates three times this year by 25 basis points (bps) each. Lower interest rates would make borrowings cheaper, providing a boost to both investment in new projects and repayment of higher-rate debt. As such, it would lead to strong economic growth, and is thus a boon to the stock market (read: 4 Sectors Set to Surge in November: ETFs & Stocks to Buy).

While every corner of the market is enjoying this ascent, high-beta ETFs and stocks seem a perfect bet at present.

Why Beta?

Beta measures the price volatility of stocks or funds relative to the overall market. It has a direct relationship to market movements. A beta of more than 1 indicates that the price tends to move higher than the broader market and is extremely volatile, while a beta of less than 1 indicates the stock price or fund is less volatile than the market.

That said, high-beta stocks seek to capitalize on consistent growth with market-beating returns. This is because when markets soar, high-beta stocks experience larger gains than the broader market counterparts and thus, outpace the rivals. However, these exhibit a higher level of volatility (read: 9 High-Flying ETFs of 2019).

Given this bullishness, investors could find the following ETFs and stocks as intriguing options:

ETF Picks

We have chosen ETFs that are not confined to a specific sector or industry but offer exposure to the broad stock market. Additionally, these have AUM of at least $50 million to ensure better tradability and liquidity.

Invesco S&P 500 High Beta ETF

This fund offers exposure to stocks with the highest sensitivity to market movements, or beta over the past 12 months. It follows the S&P 500 High Beta Index.

Zacks Rank: N/A

Beta: 1.45

AUM: $127.4 million

Expense Ratio: 0.25%

Invesco S&P MidCap 400 Pure Value ETF

This product offers exposure to the mid-cap value segment of the U.S. equity market by tracking the S&P Midcap 400 Pure Value Index.

Zacks Rank: #3 (Hold)
Beta: 1.42
AUM: $160.2 million
Expense Ratio: 0.35%

Invesco S&P SmallCap 600 Pure Value ETF

This fund provides pure exposure to the small-cap value segment of the U.S. equity market by tracking the S&P SmallCap 600 Pure Value Index (read: Small Caps Win in September: 5 Best ETFs & Stocks).

Zacks Rank: #3
Beta: 1.38
AUM: $200.7 million
Expense Ratio: 0.35%

ERShares Entrepreneur 30 ETF

This fund offers exposure to U.S. large-cap entrepreneurial companies with the highest market capitalization and composite scores based on six criteria. This can be easily done by tracking the Entrepreneur 30 Index.

Zacks Rank: N/A
Beta: 1.38
AUM: $75.8 million
Expense Ratio: 0.49%

Vanguard U.S. Value Factor ETF

This is an actively managed ETF and invests in stocks with relatively lower market valuations relative to fundamentals. The portfolio includes a diverse mix of stocks representing many different market capitalizations, market sectors and industry groups (read: Value ETFs Trumping Momentum ETFs: Here's Why).

Zacks Rank: #3
Beta: 1.36
AUM: $72.4 million
Expense Ratio: 0.13%

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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ERShares Entrepreneur 30 ETF (ENTR): ETF Research Reports
 
Invesco S&P 500 High Beta ETF (SPHB): ETF Research Reports
 
Invesco S&P MidCap 400 Pure Value ETF (RFV): ETF Research Reports
 
Invesco S&P SmallCap 600 Pure Value ETF (RZV): ETF Research Reports
 
Vanguard U.S. Value Factor ETF (VFVA): ETF Research Reports
 
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