Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. Small Business Confidence Up In July: ETFs In Focus

By Zacks Investment ResearchStock MarketsAug 10, 2017 04:51AM ET
www.investing.com/analysis/us-small-business-confidence-up-in-july-etfs-in-focus-200206617
U.S. Small Business Confidence Up In July: ETFs In Focus
By Zacks Investment Research   |  Aug 10, 2017 04:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Per a National Federation of Independent Business report released August 9, 2017, small business activity improved in July. The index increased to 105.2 in July compared with 103.6 in June and was above market forecast of 103.5.

The optimism is primarily being attributed to strong economic sentiment, supported by higher consumer confidence.

A resilient labor market also contributed to the optimism. Data released by the Bureau of Labor Statistics showed non-farm payrolls addition of 209,000 in July, surpassing market estimates of 180,000 (read: ETFs to Buy or Dump Post Upbeat July Jobs Data).

Moreover, the unemployment rate declined to 4.3% compared with 4.4% in the previous month. Also, a measure of labor demand, as calculated by U.S. job openings, jumped to a record 17-year high in June, as it increased by 461,000 to a seasonally adjusted figure of 6.2 million.

The economy also seems to be in good shape. GDP in Q2 grew 2.6% owing to a boost from trade. Strong consumer confidence is also representative of optimism in the economy, as it hit a 16-year high of 121.1 in July compared with 118.9 in June.

However, the U.S. economy faces high geopolitical risks owing to rising tensions with North Korea. Moreover Trump’s failure to pass the Healthcare bill has sparked concerns amongst investors about his ability to pass the tax reform.

Let us now discuss a few ETFs focused on providing exposure to U.S. small-cap equities (read: Bet on Momentum with These ETFs & Stocks).

iShares Russell 2000 ETF IWM

This fund seeks to provide exposure to small-cap U.S. companies and tracks the Russell 2000 index.

It has AUM of $35.75 billion and charges a fee of 20 basis points a year. From a sector look, the fund has high exposures to Financials, Information Technology and Health Care with 18.16%, 16.97% and 14.91% allocation, respectively (as of August 8, 2017). The fund’s top three holdings are Kite Pharma Inc (NASDAQ:KITE) , Grubhub Inc (NYSE:GRUB) and Idacorp Inc (NYSE:IDA) with 0.30%, 0.25% and 0.23% allocation, respectively (as of August 8, 2017).

The fund has returned 13.69% in the last one year and 2.41% year to date (as of August 9, 2017). It currently has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

iShares Core S&P Small-Cap ETF IJR

This fund is one of the most popular ETFs traded in the U.S. markets. It seeks to provide exposure to small cap companies.

It has AUM of $30.84 billion and charges a fee of 7 basis points a year. From a sector look, the fund has high exposures to Industrials, Financials and Consumer Discretionary with 18.77%, 16.18% and 15.84% allocation, respectively (as of August 8, 2017).

The fund’s top three holdings are MKS Instruments Inc (NASDAQ:MKSI) , Allete Inc (NYSE:ALE) and Healthcare Services Inc (NASDAQ:HCSG) with 3.84%, 2.64% and 1.89% allocation, respectively (as of August 8, 2017). The fund has returned 13.21% in the last one year and 0.21% year to date (as of August 9, 2017). It currently has a Zacks ETF Rank #3 with a Medium risk outlook.

Vanguard Small-Cap ETF (TO:VB)

This fund seeks to provide exposure to small cap U.S. companies and tracks the CRSP US Small Cap Index.

It has AUM of $19.07 billion and charges a fee of 6 basis points a year. From a sector look, the fund has high exposures to Financials, Industrials and Consumer Services with 26.3%, 19.9% and 11.9% allocation, respectively (as of June 30, 2017).

The fund’s top three holdings are Packaging Corp. of America (NYSE:PKG) , CBOE Holdings Inc. (NASDAQ:CBOE) and CDW Corp (NASDAQ:CDW) with 0.3% allocation each (as of June 30, 2017). The fund has returned 10.89% in the last one year and 4.09% year to date (as of August 9, 2017). It currently has a Zacks ETF Rank #3 with a Medium risk outlook.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>



IDACORP, Inc. (IDA): Free Stock Analysis Report

Allete, Inc. (ALE): Free Stock Analysis Report

Healthcare Services Group, Inc. (HCSG): Free Stock Analysis Report

MKS Instruments, Inc. (MKSI): Free Stock Analysis Report

CDW Corporation (CDW): Free Stock Analysis Report

GrubHub Inc. (GRUB): Free Stock Analysis Report

Packaging Corporation of America (PKG): Free Stock Analysis Report

ISHARS-R 2000 (IWM): ETF Research Reports

ISHARS-SP SC600 (IJR): ETF Research Reports

VIPERS-SM CAP (VB): ETF Research Reports

Kite Pharma, Inc. (KITE): Free Stock Analysis Report

CBOE Holdings, Inc. (CBOE): Free Stock Analysis Report

Original post

Zacks Investment Research

U.S. Small Business Confidence Up In July: ETFs In Focus
 

Related Articles

U.S. Small Business Confidence Up In July: ETFs In Focus

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email