|Bid||56.22 x 800|
|Ask||61.44 x 1100|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.00|
|Expense Ratio (net)||0.46%|
More than ever, investors need to get strategic as trade wars, inverted yield curves and fears of a global economic slowdown weighing on the minds of investors. There’s a plethora of options available ...
Stocks rallied Thursday, but it may take some more convincing before investors embrace small-cap equities and ETFs in earnest. Amid the latest market volatility, it’s been large-cap equities that have been outperforming small caps thus far, according to Direxion Investments’ latest Relative Weight Spotlight for the month of August. The trade wars have most certainly put investors on a rollercoaster ride, but for investors with a queasy stomach, they might want to look at large caps.
Trade wars and inverted yield curves are throwing curve balls at investors, but with more volatility expected, are they better off leaving capital with the major league large cap equities? Does it mean small cap equities are doomed? Of course, it depends on who you ask, but some will say small cap exposure is still a necessity moving forward.
The iShares Russell 2000 ETF (IWM) , which tracks the widely observed Russell 2000 Index of small-cap names, has been trailing large-cap benchmarks and ETFs, including the iShares Russell 1000 ETF (IWB) and that situation has been worsening in recent months. The diverging fortune between the small-cap and large-cap segment is a cause for concern for some investors. Small-cap stocks, which focus more of on the domestic economy, typically strengthen ahead of a wider market rally and fall more quickly ahead of a broader pullback.
Amid the latest market volatility, it’s been large cap equities that have been outperforming small caps thus far, according to Direxion Investments’ latest Relative Weight Spotlight for the month of August. The trade wars have most certainly put investors on a rollercoaster ride, but for investors with a queasy stomach, they might want to look at large caps. “Large Caps (+1.55%) outpaced Small Caps (+0.58%) for the fourth time this year, and it was the fourth time in the last five months for large cap leadership,” a Relative Weight Spotlight post from Direxion Investments noted.
While the more widely observed U.S. benchmarks have marked new record highs, small-cap stocks and related exchange traded funds have fallen behind and underperformed. The iShares Russell 2000 ETF (NYSEArca: ...
Prior to a volatile climate in May that saw a U.S.-China trade deal hit a pothole, large cap equities were already outperforming small cap equities until the month of June, according to the July edition of Direxion Investments' Relative Weight Spotlight. "While Small Cap outperformance speaks highly towards a more 'risk-on' sentiment in the markets, the relative outperformance was quite small.
Through Schwab ETF OneSource™, Investors Have Commission-Free Access to Direxion Strategies Designed for Capital-Efficient Execution of Cyclical Views NEW YORK , July 9, 2019 /PRNewswire/ -- Direxion is ...
Although it was once known for the hockey puck-sized streaming boxes that enabled streaming across thousands of apps, Roku has diversified into advertising, licensing and distribution. The Roku Channel, which launched in late 2017, is now generating Amazon- and Apple-style fees from dozens of subscription apps, and is among the top five destinations on the entire platform. Deals to integrate the Roku interface into TVs from several manufacturers have now made Roku the No. 1 smart-TV brand, ahead of Samsung, the company said.
Small cap equities, in particular, saw a dip as investors favored large cap equities as a safe haven during the heavy bouts of volatility, but June could tell a different story. Conversely, if investors believe that small cap equities will outperform large cap equities, the Direxion Russell Small Over Large Cap ETF (RWSL) provides a means to not only see small cap stocks perform well, but a way to capitalize on their outperformance versus their large cap brethren. Small Caps a Safe Haven?
"While Large Cap and Small Cap stocks show very similar returns through the close of business on April 30, leadership shifted from Small Caps to Large Caps in a noticeable way," noted the Direxion Investments post. "Through the month of January, Small Caps provided almost 3% in outperformance relative to Large Caps.
The Russell 2000–the index primarily associated with small cap equities–is up about 21 percent since December’s sell-off during a volatile fourth quarter in 2018. However, the index is in correction mode ...
For investors looking for ideal safe haven assets during the U.S.-China trade war are better off looking at large cap equities over small cap equities, according to Jill Carey Hall, the resident small cap stock expert at Bank of America. Hall said that small cap fundamentals are suspect and as such, should be avoided if a prolonged trade war continues. The Russell 2000--the index primarily associated with small cap equities--is up 21 percent since December's sell-off during a volatile fourth quarter in 2018.
It begged the question of who sustained the most damage: large cap equities or small cap equities? Small cap equities absorbing the brunt of the punishment comes as they were practically neck and neck with large cap equities during the month of April. Year-to-date performance for U.S. equities have been fueling both large cap and small cap stocks, as both jockeyed for position in April.
With large-cap stocks being more vulnerable to international trade disputes, small-cap ETFs may be worth considering in the current market environment. Going a step further, investors can harness small-cap ...
Year-to-date performance for U.S. equities have been fueling both large cap and small cap stocks, as both jockeyed for position in April. "Through the month of January, Small Caps provided almost 3% in outperformance relative to Large Caps.
Will small cap equities react more positively to the latest central bank move as the markets continue to digest the news of rates remaining static? The lack of a rate cut has brought volatility back to the markets, which could possibly see gains in large caps falter and investors downsizing to small cap opportunities. While the central bank elected to keep interest rates static this week, the markets dipped into the red with the Dow Jones Industrial Average falling close to 300 points combined in two straight sessions.
“While the (first quarter) boost from net trade and state and local government spending is unlikely to be repeated in [the second quarter], the main message is that private consumption and investment are slowing down only gradually,” said Brian Coulton, chief economist at Fitch Ratings, in a statement. Exports helped to drive growth in the first quarter as a a decline in imports and higher inventory investment offset weaker consumer spending and business investment, according to the Commerce Department on Friday. "The upside beat was helped by net trade (exports jumped while imports contracted sharply) and inventories which combined contributed almost 170 bps of the rise," wrote Peter Boockvar, chief investment officer at Bleakley Advisory Group.
First-quarter earnings have fueled record closings for the S&P 500 and Nasdaq Composite, but will this run put large cap equities into overbought territory versus small cap equities? The strength in large ...
The crux of first-quarter earnings will take place this week, which could sway sector-specific exchange-traded funds (ETFs) as industry movers and shakers release their reports. Direxion Investments published their latest Relative Weight Spotlight that could give ETF investors and traders some insight as to where the next best move might be to position themselves for the busiest week of earnings. Two notable areas that could see continued strength are in large cap equities and defensive equities.
With the transparency and liquidity of an ETF wrapper that incorporates multiple hedge fund strategies, it opens up the arena to all types of investors irrespective of net worth--the case for using alternative and thematic tools in the current market landscape. This has opened up the ETF marketplace for innovation, which Direxion Investments has taken with the introduction of its Relative Weight ETFs. Whether an investor thinks U.S. equities in general will outpace international equities or emerging markets will supplant developed markets in terms of performance, the Relative Weight ETFs give investors this unique capability without having to spread capital over a multitude of positions. "They're definitely for buy and hold investors so they aren't leveraged," said Jablonski, referring to Direxion's vast array of other products that are leveraged for short-term tactical traders.
Large cap equities could be entering overbought territory versus small cap equities, but how this plays out could depend on first-quarter earnings season, which could continue to sway in favor of the large caps. The strength in large caps is certainly something to take note off, particularly when it comes to the Relative Strength Index (RSI) technical indicator--a common tool for traders when assessing whether a stock or exchange-traded fund (ETF) is overbought (the index above 70) or oversold (the index below 30). With large caps currently at 70 and their small cap brethren at 60, does it mean the air is ready to come out of the large cap run higher?
As U.S. equities continue to seek retribution from a challenging fourth quarter in 2018, there have been some underlying trends that are starting to surface in terms of relative value: a penchant for large cap and growth equities. "Concerns about growth prospects, as portrayed by the longer-term interest rate market, impacted cyclical sectors, value stocks, and small caps over the month of March, but the market has also taken into the account the balancing act that comes with lower rates, especially the Federal Funds Rate," David Mazza, Managing Director, Head of Product at Direxion Investments, wrote in Direxion's latest Relative Weight Outlook commentary. Despite signs of a global economic slowdown, figureheads like Federal Reserve Vice Chairman Richard Clarida are throwing their support behind the U.S. economy, saying it has room to grow.
A Boeing downgrade and a General Electric price target cut were partly to blame for the Dow Jones Industrial Average sliding over 100 points to start the trading week on Monday. Bank of America Merrill ...
Markets were fickle during the early trading session on Wednesday as stocks were up on the optimism that a trade deal is close, but went negative after employment data released by ADP and Moody’s Analytics showed that job growth hit an 18-month low in the month of March. Private payrolls went up by 129,000 for the month, which fell below the 173,000 that economists surveyed by Dow Jones were expecting to see. “The job market is weakening, with employment gains slowing significantly across most industries and company sizes,” Mark Zandi, chief economist at Moody’s Analytics, said in a statement.