VB: Small Caps Breaking Out Is A Trade Not An Investment

The Vanguard US Small Cap ETF is breaking out to the upside led by the recovery in growth stocks, which have shown signs of life following weakness in 2022.While the near-term technical picture for the VB suggests some further near-term upside, the ETF is unlikely to generate strong long-term returns. Future returns are likely to be lower than seen in the past even if profit margins remain at all-time highs as real sales growth slows in line with real GDP.

Invesco S&P 500 Momentum ETF: Large Cap Momentum At Its Best (NYSEARCA:SPMO)

Momentum is the simple idea that stocks which performed relatively strong over the recent past (winners) tend to outperform those that performed poorly (losers). The Invesco S&P 500 Momentum ETF invests in the 100 stocks with the highest “momentum score” (12-month return) from the S&P 500 Index. Since inception in 2015, SPMO delivered momentum exposure with respect to the academic benchmark of Kenneth French. Since 2017, it also outperformed most momentum-peers

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RPV: Why I’m Downgrading The S&P 500 Pure Value ETF (NYSEARCA:RPV)

RPV tracks the S&P 500 Pure Value Index, selecting 120 large-cap companies with the lowest price-book, price-earnings, and price-sales ratios. RPV is soundly beating ETFs that track the more broad S&P 500 Value Index this year, but its concentration risks are too high with a possible recession on the horizon. Besides poor diversification, there are other concerns involving low profitability, questionable earnings growth, and negative earnings trends.

SVXY: A ‘Sneaky Good’ Way To Be Bullish On The S&P 500

SVXY is a small group of quirky but often effective ways to profit when the S&P 500 rises in price. This ETF aims to profit from falling volatility. That is, when the VIX volatility index drops. That is typically associated with periods in which the S&P 500 is rising.T hat makes SVXY a not-so-obvious way to be bullish.

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