Are small caps the place to be right now? They look like better value than the S&P 500 itself, which, in an environment that seems to vacillate wildly between soft-landing optimism and hard-landing, Fed-induced recession pessimism, is certainly worth taking a look at. That small cap opportunity may prompt investors to take a look at a duo of ETFs from American Century Investment’s brand Avantis Investors, the Avantis U.S Small Cap Equity ETF ( AVSC ) and the Avantis U.S. Small Cap Value ETF ( AVUV ). What is driving small caps’ value moment relative to the big S&P 500? Based on trailing operating earnings, small caps are seeing at a 25% discount to large caps, one of the biggest discounts since the mid-1980s – they’re also trading at 16 times earnings on aggregate based on forecast earnings according to the Leuthold Group . Compare that to 19 times for large caps, for example, too. Advisors themselves are already showing their hunger for small caps . On a year-to-date basis, meanwhile, small cap value as an equity factor was the second strongest based on returns, while small cap core and small cap growth rounded out the top five . […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
