iShares Russell 2000 Growth ETFの空売り状況は、投資家がiShares Russell 2000 Growth ETFの株価下落に賭けている度合いを知ることができます。空売りデータは2週間ごとに更新されます。

iShares Russell 2000 Growth ETF (ARCA:IWO), 空売り情報

iShares Russell 2000 Growth ETF

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The Fund seeks to track the investment results of the Russell 2000 Growth Index (the Underlying Index), which measures the performance of the small-capitalization growth sector of the U.S. equity market, as defined by FTSE Russell (the Index Provider or Russell). The Underlying Index is a subset of the Russell 2000 Index, which measures the performance of the small-capitalization sector of the U.S. equity market, as defined by Russell. As of March 31, 2024, the Underlying Index represented approximately 50 percent of the total market value of the Russell 2000 Index. The Underlying Index measures the performance of equity securities of Russell 2000 Index issuers with higher price-to-book ratios, higher sales-per-share historical growth and higher forecasted growth relative to all issuers included in the Russell 2000 Index. As of March 31, 2024, a significant portion of the Underlying Index is represented by securities of companies in the healthcare, industrials and technology industries or sectors.

Insmed Inc

Ftai Aviation Ltd

Sprouts Farmers Markets Inc.

Vaxcyte Inc

Applied Industrial Technologies In

Fabrinet

Sps Commerce

Ensign Group Inc/the

Fluor Corp

Abercrombie & Fitch Co. Class A

Rocket Lab Usa Inc

Credo Technology Group Holding Ltd

Healthequity

Carpenter Technology Corp

Chart Inds Inc

Hims & Hers Health Inc

Mueller Industries Inc

Corcept Therapeutics Inc

Blackrock Cash Funds: Treasury, Sl Agency Shares

Halozyme Therapeutics Inc (united States)

Fabrinet (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FN#NYSE">FN</a>) shares are trading lower premarket on Tuesday after it reported second-<a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/g43448895/fabrinet-announces-second-quarter-fiscal-year-2025-financial-results" rel="noreferrer noopener">quarter results on Monday</a>.
Revenue was $833.6 million, beating the consensus of $814.3 million. Adjusted EPS of $2.61 exceeded<a href="https://www.benzinga.com/earnings" target="_blank" rel="noreferrer noopener"> the consensus of $2.50</a>.
Seamus Grady, Chief Executive Officer of Fabrinet, said, &#8220;Our telecom performance was very strong and benefited from both increasing demand for datacenter interconnect products as well as early progress from recent systems wins.&#8221;
&#8221;While datacom demand has slightly moderated near-term we continue to anticipate more rapid growth as next-generation products ramp production. With several positive trends, we are very optimistic as we look to the third quarter and beyond.&#8221;
As of December 27, 2024, cash and cash equivalents stood at $934.6 million.
Buyback: The Board of Directors approved an expansion of its share repurchase program, authorizing the buyback of up to an additional $100 million in ordinary shares.
This increase raises the total authorization under the existing repurchase program to $534.3 million.
Outlook: Fabrinet expects third-quarter FY25 revenue of $850 million &#8211; $870 million, surpassing <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">street view of $825.72 million</a>.
The company also projects adjusted EPS of $2.55 &#8211; $2.63 vs. street view of $2.55.
Investors can gain exposure to the stock via&nbsp;Vanguard Russell 2000 Growth ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VTWG#NASDAQ">VTWG</a>) and iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>).
Price Action: FN shares are down 9.77% at $203.55 premarket at the last check Tuesday.
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<li><a href="https://www.benzinga.com/general/market-summary/25/02/43429067/us-stocks-likely-to-open-lower-as-trump-imposes-tariffs-on-china-canada-and-mexico-expert-notes-feb-worst-month-in-post-election-years" target="_blank" rel="noreferrer noopener">US Stocks Likely To Open Lower As Trump Imposes Tariffs On China, Canada, And Mexico: Expert Notes Feb Worst Month In Post-Election Years</a></li>
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VTWG

Fabrinet Q2: Earnings Beat, Moderated Datacom Demand, Expanded Stock Buyback & More

The Federal Reserve&#8217;s recent 50 basis point rate cut marks a notable shift in monetary policy, with significant implications for both the U.S. economy <a href="https://www.benzinga.com/markets/emerging-markets">and global markets</a>. 
Fund managers and strategists are weighing in on what this means for investors and what to expect next.
<h2 class="wp-block-heading">KraneShares: Fed's Rate Cut Signals A Cycle</h2>
Brendan Ahern, CIO of KraneShares, believes the Fed's 50 bps rate cut is the beginning of a larger easing cycle.
According to Ahern, &#8220;Another 50 basis point reduction is expected later this year, with an additional 100 basis points projected for 2025.&#8221; 
While some fear the possibility of a mild recession, Ahern points out that the U.S. economy is still displaying resilience. "Unemployment remains low, inflation is easing, consumer spending is holding strong, and corporate profits are generally stable," he notes, suggesting the potential for a "soft landing" instead of a hard downturn.
<h2 class="wp-block-heading">Russell Investments: Softer Stance Could Boost Markets</h2>
Paul Eitelman, chief investment strategist at Russell Investments, shares a more tempered yet optimistic view, noting that the Fed&#8217;s focus is shifting from aggressive inflation control to stabilizing economic growth.
&#8220;This marked the start of a long-awaited easing cycle,&#8221; he said, adding that the Fed is aiming to prevent major damage to the labor market.
Eitelman expects the Fed to maintain a steady pace of cuts—25 bps at each meeting through 2025—to balance risks. Should this strategy succeed, sectors like real estate and small caps could benefit from lower rates and a stabilizing economy.
The Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) and the SPDR Real Estate Select Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) are two of the most popular real estate equity tracking ETFs in the U.S. 
On the small-cap front, the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and the iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>) are two popular ETFs tracking the Russell 2000 Index &#8211; a popular benchmark for small-cap equity in the U.S. The iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>) and the Vanguard Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) are two other popular small-cap equity-tracking ETFs.
Don't miss out on this unparalleled opportunity:
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<h2 class="wp-block-heading">WisdomTree&#8217;s Senior Economist: &#8220;I Am Surprised"</h2>
WisdomTree senior economist Professor Jeremy Siegel offered a candid take, expressing surprise at the Fed's bold move. &#8220;I&#8217;ll have to say, I am surprised. I was saying of course I wanted 50, you know I even wanted more, but I didn&#8217;t think he was going to do it.&#8221;
Siegel&#8217;s analysis also highlights the Fed's response to catching up with inflation control. "They realize that they were a bit behind the curve and now they are catching up," he said.
Siegel believes the rate cuts lower the probability of a recession, helping sustain economic strength.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/09/40995794/key-stock-market-dates-predicting-major-swings-revealed-ahead-of-2024-election-according-to-bank">Key Stock Market Dates Predicting Major Swings Revealed Ahead Of 2024 Election, According To Bank Of America</a>
<h2 class="wp-block-heading">Emerging Markets: A Beneficiary Of Lower Rates?</h2>
KraneShares' Ahern also highlights the potential boost for emerging markets. A weaker U.S. dollar resulting from lower rates could &#8220;strengthen emerging market currencies,&#8221; and increased capital inflows may follow. Investors in the iShares Core MSCI Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEMG#NYSE">IEMG</a>) and the Vanguard FTSE Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VWO#NYSE">VWO</a>) are well-positioned to benefit from the strengthening of emerging market equities.
Chinese assets, in particular, are attracting global investors as they trade at low valuations. Investors in the iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>) and the KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) are positioned to benefit from any increase in fund flows towards Chinese equities.
Ahern advises closely watching both U.S. policy shifts and China's economic recovery for potential opportunities in this space.
While the Fed's aggressive 50 bps cut has caught many by surprise, fund managers and strategists agree it may provide much-needed relief to financial markets, with growth sectors and emerging markets standing to benefit from the shift.
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Asia

Sector ETFs

Broad U.S. Equity ETFs

Emerging Markets

Small Cap Analysis

Emerging Market ETFs

Federal Reserve

Markets

Trading Ideas

ETFs

IEMG

KWEB

MCHI

XLRE

Fed 'Catching Up' With 50-Point Rate Cut: Fund Managers Expect Gains In Emerging Markets, Small Caps

Launched on 04/19/2011, the First Trust Small Cap Growth AlphaDEX ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fyc#NASDAQ">FYC</a>) is a smart beta exchange traded fund offering broad exposure to the Style Box - Small Cap Growth category of the market.
<h2>What Are Smart Beta ETFs?</h2>
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it&#39;s possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
<h2>Fund Sponsor &amp; Index</h2>
The fund is sponsored by First Trust Advisors. It has amassed assets over $328.59 million, making it one of the average sized ETFs in the Style Box - Small Cap Growth. Before fees and expenses, this particular fund seeks to match the performance of the Nasdaq AlphaDEX Small Cap Growth Index.
The NASDAQ AlphaDEX Small Cap Growth Index is an enhanced which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Growth Index.
<h2>Cost &amp; Other Expenses</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.70% for FYC, making it one of the most expensive products in the space.
It&#39;s 12-month trailing dividend yield comes in at 0.41%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For FYC, it has heaviest allocation in the Healthcare sector --about 22.90% of the portfolio --while Industrials and Information Technology round out the top three.
When you look at individual holdings, Adma Biologics, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adma#NASDAQ">ADMA</a>) accounts for about 0.92% of the fund&#39;s total assets, followed by Mirum Pharmaceuticals, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mirm#NASDAQ">MIRM</a>) and Zeta Global Holdings Corp. (class A) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/zeta#NYSE">ZETA</a>).
Its top 10 holdings account for approximately 7.9% of FYC&#39;s total assets under management.
<h2>Performance and Risk</h2>
So far this year, FYC has added roughly 16.21%, and was up about 25.24% in the last one year (as of 09/17/2024). During this past 52-week period, the fund has traded between $51.50 and $73.05.
The fund has a beta of 1.18 and standard deviation of 24.03% for the trailing three-year period, which makes FYC a high risk choice in this particular space. With about 265 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
First Trust Small Cap Growth AlphaDEX ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 2000 Growth ETF (ARCA:IWO) tracks Russell 2000 Growth Index and the Vanguard Small-Cap Growth ETF (ARCA:VBK) tracks CRSP U.S. Small Cap Growth Index. IShares Russell 2000 Growth ETF has $11.60 billion in assets, Vanguard Small-Cap Growth ETF has $17.61 billion. IWO has an expense ratio of 0.24% and VBK charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Growth.
<a href="https://www.zacks.com/stock/news/2336915/is-first-trust-small-cap-growth-alphadex-etf-fyc-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2336915">To read this article on Zacks.com click here.</a>

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Is First Trust Small Cap Growth AlphaDEX ETF a Strong ETF Right Now?

Launched on 04/19/2011, the First Trust Small Cap Growth AlphaDEX ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fyc#NASDAQ">FYC</a>) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Growth segment of the US equity market.
The fund is sponsored by First Trust Advisors. It has amassed assets over $314.36 million, making it one of the average sized ETFs attempting to match the Small Cap Growth segment of the US equity market.
<h2>Why Small Cap Growth</h2>
With more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Additionally, growth stocks have a greater level of risk associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.70%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 0.43%.
<h2>Sector Exposure and Top Holdings</h2>
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund&#39;s holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector--about 22.30% of the portfolio. Industrials and Information Technology round out the top three.
Looking at individual holdings, Adma Biologics, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adma#NASDAQ">ADMA</a>) accounts for about 0.92% of total assets, followed by Mirum Pharmaceuticals, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mirm#NASDAQ">MIRM</a>) and Zeta Global Holdings Corp. (class A) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/zeta#NYSE">ZETA</a>).
The top 10 holdings account for about 7.9% of total assets under management.
<h2>Performance and Risk</h2>
FYC seeks to match the performance of the Nasdaq AlphaDEX Small Cap Growth Index before fees and expenses. The NASDAQ AlphaDEX Small Cap Growth Index is an enhanced which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Growth Index.
The ETF has added roughly 11.05% so far this year and it&#39;s up approximately 18.52% in the last one year (as of 09/12/2024). In the past 52-week period, it has traded between $51.50 and $72.61.
The ETF has a beta of 1.18 and standard deviation of 23.97% for the trailing three-year period, making it a high risk choice in the space. With about 265 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
First Trust Small Cap Growth AlphaDEX ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FYC is a good option for those seeking exposure to the Style Box - Small Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 2000 Growth ETF (ARCA:IWO) and the Vanguard Small-Cap Growth ETF (ARCA:VBK) track a similar index. While iShares Russell 2000 Growth ETF has $11.17 billion in assets, Vanguard Small-Cap Growth ETF has $17.01 billion. IWO has an expense ratio of 0.24% and VBK charges 0.07%.
<h2>Bottom-Line</h2>
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
<a href="https://www.zacks.com/stock/news/2335016/should-first-trust-small-cap-growth-alphadex-etf-fyc-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2335016">To read this article on Zacks.com click here.</a>

Analyst Ratings

Should First Trust Small Cap Growth AlphaDEX ETF Be on Your Investing Radar?

Designed to provide broad exposure to the Small Cap Growth segment of the US equity market, the iShares Morningstar Small-Cap Growth ETF (ARCA:ISCG) is a passively managed exchange traded fund launched on 06/28/2004.
The fund is sponsored by Blackrock (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/blk#NYSE">BLK</a>). It has amassed assets over $583.77 million, making it one of the average sized ETFs attempting to match the Small Cap Growth segment of the US equity market.
<h2>Why Small Cap Growth</h2>
With more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
<h2>Costs</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.06%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.63%.
<h2>Sector Exposure and Top Holdings</h2>
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund&#39;s holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 23.10% of the portfolio. Healthcare and Information Technology round out the top three.
Looking at individual holdings, Microstrategy Inc Class A&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mstr#NASDAQ">MSTR</a>) accounts for about 1.09% of total assets, followed by Natera Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ntra#NASDAQ">NTRA</a>) and Texas Roadhouse Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/txrh#NASDAQ">TXRH</a>).
The top 10 holdings account for about 5.93% of total assets under management.
<h2>Performance and Risk</h2>
ISCG seeks to match the performance of the MORNINGSTAR US SML CP BRD GRWTH EXTD ID before fees and expenses. The Morningstar US Small Cap Broad Growth Extended Index comprises of small-capitalization U.S. equities that exhibit growth characteristics.
The ETF has gained about 9.02% so far this year and is up about 12.33% in the last one year (as of 07/31/2024). In the past 52-week period, it has traded between $35.43 and $48.99.
The ETF has a beta of 1.08 and standard deviation of 23.73% for the trailing three-year period. With about 1000 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
IShares Morningstar Small-Cap Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, ISCG is a great option for investors seeking exposure to the Style Box - Small Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 2000 Growth ETF (ARCA:IWO) and the Vanguard Small-Cap Growth ETF (ARCA:VBK) track a similar index. While iShares Russell 2000 Growth ETF has $11.99 billion in assets, Vanguard Small-Cap Growth ETF has $17.61 billion. IWO has an expense ratio of 0.24% and VBK charges 0.07%.
<h2>Bottom-Line</h2>
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2312602/should-ishares-morningstar-small-cap-growth-etf-iscg-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2312602">To read this article on Zacks.com click here.</a>

ISCG

MSTR

NTRA

TXRH

Should iShares Morningstar Small-Cap Growth ETF Be on Your Investing Radar?

AST SpaceMobile, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTS#NASDAQ">ASTS</a>) stock is trading higher Monday after Chairman and CEO Abel Avellan published a letter to partners, shareholders, and future space-based cellular broadband network users.&nbsp;
Avellan said <a target="_blank" href="https://www.benzinga.com/news/24/05/39062478/whats-going-on-with-ast-spacemobile-stock-on-wednesday" rel="noreferrer noopener">the strategic partnership</a> with Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), building on its existing agreement with AT&amp;T Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>), aims to eliminate connectivity gaps across the United States by deploying a space-based cellular broadband network. AST SpaceMobile stock gained after the update.
The partnership with Verizon secures additional capital via prepayments and convertible notes, accelerating AST SpaceMobile&#8217;s mission to achieve 100% geographical coverage in the continental U.S., the letter&nbsp;highlighted.
AT&amp;T and Verizon will share portions of their 850 MHz low-band spectrum with AST SpaceMobile, as per Avellan. This spectrum offers superior signal penetration, ensuring coverage even in remote areas.
AST SpaceMobile plans to deploy the most significant commercial communications satellite in low Earth orbit, he said. The satellite array will act as a giant cell tower, providing strong signals directly reaching standard smartphones.
The Next Generation BlueBird satellites feature the AST5000 ASIC architecture, which offers a tenfold improvement in processing bandwidth.
In June, AST SpaceMobile tapped Andrew Johnson&nbsp;to <a target="_blank" href="https://www.benzinga.com/news/24/06/39506158/whats-going-on-with-satellite-company-ast-spacemobile-stock-wednesday" rel="noreferrer noopener">the additional role</a> of Chief Financial Officer while continuing as Chief Legal Officer. The company promoted Shanti Gupta, Chief Accounting Officer, to the position of Chief Operating Officer.
AST SpaceMobile stock gained over 155% in the last 12 months. Investors can gain exposure to the stock via iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>).
ASTS Price Action: AST SpaceMobile&nbsp;shares were up 2.15% at $11.87 at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Management

ASTS

What's Going On With Satellite Stock AST SpaceMobile Monday?

AST SpaceMobile, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTS#NASDAQ">ASTS</a>), the company developing the first space-based cellular broadband network accessible directly by smartphones, has announced the appointment of Chris Sambar to its Board of Directors, <a href="https://www.benzinga.com/pressreleases/24/06/b39454662/ast-spacemobile-welcomes-chris-sambar-head-of-network-at-t-to-board-of-directors" target="_blank" rel="noreferrer noopener">effective June 20</a>. 
Sambar, who is the Head of Network at AT&amp;T Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>), succeeds Alex Coleman, Chairman at New Providence Acquisition Corp. The stock saw some redemption Monday after a selloff Friday.
The addition of Sambar to the Board comes at a crucial time for AST SpaceMobile as the company prepares to launch its first commercial satellites into low Earth orbit from Cape Canaveral this summer. 
Sambar has over two decades of experience at AT&amp;T (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>).
In his new role, Sambar will also serve on AST SpaceMobile's Network Planning and Spectrum Committee, overseeing network planning, features, and capacity for the AST constellation.
<a target="_blank" href="https://www.benzinga.com/news/24/06/39277372/why-is-satellite-company-ast-spacemobile-stock-soaring-on-tuesday" rel="noreferrer noopener">Earlier in June</a> the company&#8217;s selling shareholders offloaded 10.45 million shares.
AST SpaceMobile holds over 3,300 patent and patent-pending claims for its technology and operates advanced manufacturing and testing facilities in Midland, Texas, covering 185,000 square feet. 
The company has secured strategic investments from major players such as AT&amp;T, Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google, and Vodafone Group Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VOD#NASDAQ">VOD</a>), and has a contract award with the U.S. Government through a prime contractor.
AST SpaceMobile stock gained 56% in the last 12 months. Investors can gain exposure to the stock via iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>).
Price Action: AST SpaceMobile shares were down 0.10% at $10.07 at the last check on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Company

Media

GOOG

GOOGL

AST SpaceMobile Adds Chris Sambar to Board as It Prepares for Satellite Launch

Xponential Fitness, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPOF#NYSE">XPOF</a>) shares are trading higher after the company announced the appointment of Mark King as <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/b39355295/xponential-fitness-announces-appointment-of-mark-king-as-chief-executive-officer" rel="noreferrer noopener">Chief Executive Officer, effective June 17, 2024</a>.
King will also serve on the company&#8217;s Board of Directors. King succeeds Brenda Morris, who has been serving as Interim CEO. Morris will continue her role as a board member following the transition.
King brings a wealth of experience in leading global consumer brands and franchise operations. Under his leadership at Taco Bell, he drove significant growth and expansion, overseeing the addition of over 1,400 franchise locations and achieving consistent sales increases.
His previous roles include President of Adidas AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ADDYY#OTC">ADDYY</a>) North America and CEO of TaylorMade, where he substantially increased market share and sales.
Xponential Fitness stock has lost over 46% in the last 12 months. Investors can gain exposure to the stock via IShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>) and Vanguard U.S. Value Factor ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VFVA#BATS">VFVA</a>).
Price Action: XPOF shares are trading higher by 26.5% at $14.26 at last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

ADDYY

VFVA

XPOF

Why Xponential Fitness Shares Are Surging On Monday

AST SpaceMobile, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTS#NASDAQ">ASTS</a>) disclosed in filing for the resale of up to 10.45 million shares by selling <a target="_blank" href="https://app.quotemedia.com/data/downloadFiling?webmasterId=102691&amp;ref=318387183&amp;type=HTML&amp;symbol=ASTS&amp;cdn=a0cdc584b4d6438e23946f7c5aa7d844&amp;companyName=AST+SpaceMobile+Inc.&amp;formType=S-3&amp;formDescription=Registration+statement+under+Securities+Act+of+1933&amp;dateFiled=2024-06-11" rel="noreferrer noopener">stockholders</a>.
The satellite designer and manufacturer&nbsp;is also trading higher in sympathy with Apple Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) launch of iOS 18 <a target="_blank" href="https://www.benzinga.com/news/24/06/39256556/apple-unveils-ios-18-with-satellite-messaging-home-screen-customization-privacy-improvements-and-mor" rel="noreferrer noopener">with satellite messaging</a> during its annual developer event.
iPhone 14 and later users can now send messages via satellite, even when cellular connections are unavailable.
They can also send emojis with tapback and enjoy text effects like jitter, shake, and bounce.
In 2024, Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) and AT&amp;T Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) <a target="_blank" href="https://www.benzinga.com/news/24/05/39062478/whats-going-on-with-ast-spacemobile-stock-on-wednesday" rel="noreferrer noopener">collaborated with</a> AST SpaceMobile, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTS#NASDAQ">ASTS</a>) to provide a broadband network directly to cell phones.
Globalstar (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSAT#NYSE">GSAT</a>) stock also traded higher on Tuesday. In 2022, Apple tapped Globalstar <a target="_blank" href="https://www.benzinga.com/news/24/05/39062478/whats-going-on-with-ast-spacemobile-stock-on-wednesday" rel="noreferrer noopener">to enable its</a> iPhone 14 and iPhone 14 Pro models to send messages via a satellite outside cellular and Wi-Fi coverage.
AST SpaceMobile stock gained over 53% in the last 12 months. Investors can gain exposure to the stock via iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>).
ASTS Price Action: AST SpaceMobile shares were up 1% at $9.41 at the last check on Tuesday.
Photo via Company

Tech

AAPL

GSAT

Why Is Satellite Company AST SpaceMobile Stock Soaring On Tuesday?

Super Micro Computer, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) introduces a ready-to-deploy <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39175959/supermicro-introduces-rack-scale-plug-and-play-liquid-cooled-ai-superclusters-for-nvidia-blackwell" rel="noreferrer noopener">liquid-cooled AI data center</a>. This center, optimized for the Nvidia Corp AI Enterprise software platform, aims to accelerate generative AI adoption across industries with SuperClusters.
The new 4U liquid-cooled system featuring Nvidia&#8217;s Blackwell GPUs delivers 20 PetaFLOPS of AI performance and significantly improves AI training and inference efficiency.
The AI server vendor also announced a comprehensive range of products based on the Nvidia Blackwell architecture, including systems for the new Nvidia HGX B100, B200, and GB200 Grace Blackwell Superchip.
These systems promise up to 40% reduction in data center power usage through advanced liquid-cooling solutions.
Supermicro stock is trading up Wednesday after Taiwan Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) plans to hike the prices of its chip production services, which sent the broader sector down Tuesday.
At COMPUTEX 2024, Supermicro showcased upcoming systems optimized for Nvidia Blackwell GPUs. It <a target="_blank" href="https://www.benzinga.com/news/24/06/39169883/whats-going-on-with-super-micro-computer-stock-on-tuesday" rel="noreferrer noopener">also launched its</a> X14 server portfolio, which supports&nbsp;Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) Xeon 6700-series and Xeon 6900-series processors.
Recently, Supermicro partnered with Foxconn, a supplier of Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Japanese electronics firm KDDI, and telecom partner Sharp to&nbsp;construct an AI data center&nbsp;in Japan that will leverage&nbsp;Nvidia&#8217;s advanced chips.
Supermicro stock gained 245% in the last 12 months. Investors can gain exposure to the stock via&nbsp;iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>) and Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>).
Price Action: SMCI shares were up 2.71% at $792.50 premarket at the last check on Wednesday.
Image via Shutterstock

INTC

SMCI

What's Going On With AI Vendor Stock Super Micro Computer On Wednesday?

Beyond Meat Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BYND#NASDAQ">BYND</a>) is reportedly facing significant challenges as two of its early adopters,&nbsp;Carl&#8217;s Jr.&nbsp;and&nbsp;Jack In The Box Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JACK#NASDAQ">JACK</a>) owned&nbsp;Del Taco Restaurants Inc., have removed its plant-based beef from many locations.
The shift reflects a decline in consumer interest in meat substitutes.
Most Carl&#8217;s Jr. outlets, which exceed 1,000 in number, stopped offering the Beyond Burger as of April 24, according to a report by&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-05-20/carl-s-jr-and-del-taco-are-scaling-back-beyond-meat-products?srnd=industries-v2&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>.&nbsp;
The chain&nbsp;initially&nbsp;launched the Beyond Burger in January 2019, marking one of Beyond Meat&#8217;s first major fast-food collaborations.&nbsp;
The CEO of Carl&#8217;s Jr.&#8217;s parent company, CKE Restaurants, had lauded the patty as an &#8220;industry game changer&#8221;&nbsp;at the time.
Although the Beyond Burger is&nbsp;largely&nbsp;off the menu now, a fried zucchini sandwich remains available at select locations,&nbsp;as&nbsp;per the report.
Similarly, Del Taco has discontinued Beyond Meat offerings across nearly 600 locations since last spring due to &#8220;low sales,&#8221;&nbsp;according to a Bloomberg source.&nbsp;
Nevertheless, Del Taco remains open to exploring innovative plant-based menu options with Beyond Meat. Del Taco began its partnership with Beyond Meat in 2019, proclaiming it&nbsp;as&nbsp;&#8220;the future of tacos.&#8221;
Once a favored choice on Wall Street, the company has seen its stock price plummet as it struggles to gain&nbsp;traction with consumers.&nbsp;
However, last week, the stock received fresh interest amid a rally in meme stocks after retail investor&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/05/38827325/why-beyond-meats-stock-is-roaring-higher" rel="noreferrer noopener">Roaring Kitty made a return to social media.</a>
CEO Ethan Brown,&nbsp;in a recent earnings call, touted the fourth iteration of their burger as a &#8220;home run,&#8221;&nbsp;signaling the company&#8217;s hope to boost its fortunes by increasing prices.
The&nbsp;plant-based meat&nbsp;company&#8217;s first-quarter revenue decreased&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38731541/whats-going-on-with-beyond-meat-shares-thursday" rel="noreferrer noopener">18% year-over-year to $75.603 million</a>.&nbsp;
Beyond Meat is banking on new product developments and pricing strategies to reverse its declining market performance.
Beyond Meat stock has lost more than 30% in the last 12 months. Investors can gain exposure to the stock via Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) and&nbsp;IShares Russell 2000 Growth ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>).
Price Action: BYND shares closed higher by 1.18% at $7.275 on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

BYND

JACK

Beyond Meat Faces Setback As Carl's Jr. And Del Taco Drop Products: Report

Small-cap stocks <a href="https://www.benzinga.com/news/small-cap/23/12/36316131/russell-2000-rallies-to-16-month-highs-best-performing-small-cap-stocks-popping-over-80-in-decembe">came back strongly </a>as the broader market rebounded in November following a late summer slump. An analyst sees small-cap stocks&#8217; strong performances as a harbinger of good times for <a href="https://www.benzinga.com/markets">the market</a>.
What Happened: Tapping into history, Carson Group&#8217;s Ryan Detrick said that moves of more than 10% in the Russell 2000 Index, an index of small-cap stocks, are not historically bearish. The R2K Index added 12.05% during December, taking the gain for the year to 15.1%.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/01114145/newplot-4.jpeg" alt="" class="wp-image-171816" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/01114145/newplot-4.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/01114145/newplot-4-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/01114145/newplot-4-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
The index has made more than 10% gains in December 19 other times, Detrick said. Following such strength in December, the S&amp;P 500 Index&#8217;s performance six months later was positive 90% of the time, he said.
A year later, the index was higher 14 out of the 19 times and the average gain was 15.8%, he added.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The Russell 2000 just gained 12.1% in December, the 9th best month ever. I found 19 other times &gt;10% for the month. Higher 6 mo later 90% of the time. Higher a yr later 14 times and up 15.8% on avg. In other words, big moves like this usually aren&#39;t a bearish event. <a href="https://t.co/TYPTi15FXq">pic.twitter.com/TYPTi15FXq</a>
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1741200976495718747?ref_src=twsrc%5Etfw">December 30, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/money/best-small-cap-stocks">Best Small Cap Stocks</a>
Why It&#8217;s Important: The S&amp;P 500, a measure of broader market outperformance, ended 2023 with a gain of 24.23%. Looking ahead, analysts are wary about rich valuations tempering market optimism. Most are of the view the mega-cap tech rally that fueled much of the market upside in 2023 could temper, leaving the burden of supporting the market on the smid-caps.
In his tech predictions for 2024, Deepwater Asset Management&#8217;s Gene Munster said the iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>) will outperform the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), with <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36399329/apple-to-release-ai-siri-no-tesla-robotaxi-reddit-acquisition-deep-fakes-mar-us-ele">sub-$20 billion tech companies likely outperforming large-cap companies.</a>
The upward market momentum hinges on the Federal Reserve beginning to reverse its rate hikes and the economy averting a hard landing.
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), an exchange-traded fund that tracks the S&amp;P 500 Index, ended Friday&#8217;s session down 0.29% at $475.31, according to Benzinga Pro data.
Read Next:<a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36438782/larry-summers-says-declaring-proverbial-soft-landing-is-premature-asserts-inflation"> Larry Summers Says Declaring &#8216;Proverbial Soft Landing&#8217; Is &#8216;Premature,&#8217; Asserts Inflation Still A &#8216;Source of Concern&#8217;</a>
Photo via Shutterstock.

Long Ideas

S&P 500 Could Build On 2023's 24% Gain: Analyst Shares Key Data Supporting Continued Broader Market Performance

With just one trading session left in the year, the U.S. market has rebounded impressively from its lackluster performance in 2022. The S&amp;P 500 is poised to&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/23/12/36409413/s-p-500-nears-record-territory-even-as-momentum-slows-why-this-analyst-says-investors-may-need-t" rel="noreferrer noopener">break out to a new high</a>, boasting a gain of 24.6% for the year. Meanwhile, the S&amp;P Equal Weight Index, which equally weights its constituents, has seen a more modest 12% advance, highlighting the influence of mega-caps in the market rally.
<h3 class="wp-block-heading">Top Winners:</h3>
Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&nbsp;
YTD Gain: +239%
AI-leveraged Nvidia takes the lead with a 239% gain. The company&#8217;s AI accelerator chipsets, powering large-language models, have positioned it at the forefront of the tech arena.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064027/NVDA-2023.jpeg" alt="NVDA 2023" class="wp-image-171171" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064027/NVDA-2023.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064027/NVDA-2023-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064027/NVDA-2023-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>)
YTD Gain: +198%
Meta benefited from a rebound in ad spending and&nbsp;<a href="https://www.benzinga.com/markets/equities/23/12/36339633/zuckerbergs-year-of-efficiency-drives-meta-stock-to-best-year-ever-with-eye-popping-190-surge-wh" target="_blank" rel="noreferrer noopener">efficiency measures</a>, including significant job cuts. The success of its TikTok clone, Reels, contributed to its impressive performance.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064135/META-2023.jpeg" alt="META 2023" class="wp-image-171172" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064135/META-2023.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064135/META-2023-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064135/META-2023-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Royal Caribbean Cruises Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>)
YTD Gain: +163%
Cruise-line operators rebounded from COVID-19 disruptions, capitalizing on the resurgence in travel and leisure. Economic uncertainties have made people cautious, but the outlook may improve in the new year.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064435/RCL-2023.jpeg" alt="RCL 2023" class="wp-image-171173" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064435/RCL-2023.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064435/RCL-2023-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064435/RCL-2023-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Builders FirstSource, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLDR#NYSE">BLDR</a>)
YTD Gain: +160%
Despite a lackluster housing market recovery, this Dallas-based supplier of building materials secured the fourth spot among the S&amp;P 500 gainers.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064550/BLDR-2023.jpeg" alt="BLDR 2023" class="wp-image-171174" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064550/BLDR-2023.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064550/BLDR-2023-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064550/BLDR-2023-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>)
YTD Gain: +155%
Uber&#8217;s gains were spread throughout the year, with a steeper ascent in the latter part, driven by news of its S&amp;P 500 inclusion.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064850/UBER-2023.jpeg" alt="UBER 2023" class="wp-image-171179" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064850/UBER-2023.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064850/UBER-2023-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064850/UBER-2023-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Palo Alto Networks, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>)
YTD Gain: +112%
Palo Alto, a security software company, secured the ninth spot among the best-performing S&amp;P 500 stocks, driven by strong fundamental performance.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064927/PANW-2023.jpeg" alt="PANW 2023" class="wp-image-171180" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064927/PANW-2023.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064927/PANW-2023-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29064927/PANW-2023-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)
YTD Gain: +106%
Tesla&#8217;s performance was a tale of two halves. Despite concerns over aggressive price cuts impacting margins, the stock is set to end the year as the tenth best-performing S&amp;P 500 stock.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29065040/TSLA-2023.jpeg" alt="TSLA 2023" class="wp-image-171182" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29065040/TSLA-2023.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29065040/TSLA-2023-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/29065040/TSLA-2023-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
See Also:<a target="_blank" href="https://www.benzinga.com/money/best-growth-stocks" rel="noreferrer noopener">&nbsp;Best Growth Stocks Right Now</a>
<h3 class="wp-block-heading">What Lies Ahead for the &#8216;Magnificent Seven&#8217;?</h3>
The &#8220;Magnificent Seven&#8221; is the moniker given to the biggest seven mega-cap tech names: Nvidia, Meta, Tesla, Amazon, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) (up 83% YTD), Alphabet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (+59% YTD), Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) (+58% YTD) and Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) (+50% YTD). The rally in these stocks could cool off next year, given the overbought levels at which they are trading.
Some analysts, such as Gene Munster, anticipate <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36399329/apple-to-release-ai-siri-no-tesla-robotaxi-reddit-acquisition-deep-fakes-mar-us-ele" target="_blank" rel="noreferrer noopener">sub-$20 billion tech companies outperforming large-cap</a> ones in 2024. The iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>) will likely outperform the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), an exchange-traded fund that tracks the broader S&amp;P 500 Index, he said. The AI revolution&#8217;s continued momentum is a factor in this prediction, with AI potentially beating the Federal Reserve&#8217;s GDP projection for 2024.
<figure class="wp-block-image"><img decoding="async" src="https://datawrapper.dwcdn.net/gEJF9/full.png" alt="Magnificent Seven Outlook 2024" /></figure>
Tesla, despite facing pessimistic expectations, could defy projections with increased volume and margin improvements. Munster believes Tesla will maintain its U.S. market share in 2024, contrary to forecasts of significant erosion.
With the Federal Reserve funds rate expected to be cut in 2024, there&#8217;s potential for increased risk appetite, drawing investors back into the stock market. The relative attractiveness of stocks compared to safe havens like bonds, gold, and the U.S. dollar is likely to rise.
The SPY ended Thursday&#8217;s session up 0.09% at $476.69, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data. </a>
Read Next: <a href="https://www.benzinga.com/news/23/12/36406952/oils-rollercoaster-2023-crudes-volatile-year-in-review-and-what-awaits-in-2024">Oil&#8217;s Rollercoaster 2023: Crude&#8217;s Volatile Year In Review And What Awaits In 2024</a>

AMZN

BLDR

MSFT

NVDA

PANW

TSLA

UBER

2023's Top Dogs: Nvidia, Meta Lead S&P 500 Charge In Tumultuous Year — But Which 'Magnificent Seven' Stock Will Be 2024's Runaway Winner?

Gene Munster&#8217;s Deepwater Asset Management tasted success with its 2023 predictions. Now, it&#8217;s out with tech predictions for 2024.
A Record To Cherish: Out of the eight predictions that Deepwater made for 2023, seven came to pass. This gives the venture capital firm a success core of 87.5%.
The Munster co-founded firm was wrong about the timeline for Tesla, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) Model 2, which is now referred to as robotaxi. As opposed to its previous estimate of 2024, the firm now sees a delay until 2025. 
Among those that fructified was the outperformance of the FAANG — the moniker for a group of mega-cap tech stocks.
Deepwater also called for:
<ul>
<li>Apple, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) headset launch in late 2023</li>
<li>private-equity companies taking tech companies private</li>
<li>Unicorns going bankrupt</li>
<li>And Ford Motor Co.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) Lightning EV pickup truck outselling Tesla&#8217;s Cybertruck. </li>
</ul>
The firm also expected the year-end fed funds rate at 5.50% and the market rebounding in 2023.
See Also: <a href="https://www.benzinga.com/money/best-artificial-intelligence-stocks">Best Artificial Intelligence Stocks</a>
Here&#8217;s what Deepwater predicts for 2024 based on its crystal ball gazing and scientific predictions:
<ul>
<li>Growth Stocks Vs. Broader Market: The Winner Is&#8230; The iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>) will outperform the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>). Sub-$20 billion tech companies are poised to outperform large-cap companies.</li>
<li>Time Ripe For Pursuing Acquisitions: Large technology platform companies such as CrowdStrike Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>), Palo Alto Networks, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>) and Datadog, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DDOG#NASDAQ">DDOG</a>) will likely be in acquisitive mode in the coming year as they continue to add point solutions to their platforms.</li>
<li>Apple To Dip Heels Into AI Pool: Deepwater expects Apple to bring generative AI to Siri, with an announcement regarding this likely to be made at the WWDC 2024. Also, the tech giant is unlikely to announce any additional devices in the Vision product line and will merely sell 400,000-500,000 units of Vision Pro in 2024.</li>
<li>EV Market Growth To Slow Further: Deepwater expects EV delivery growth to slow down from 40% in 2023 to 25% in 2024, while it sees growth reaccelerating in 2025. Tesla will likely maintain market share in the U.S. in 2024 due to traditional automakers slowing EV investments.</li>
<li>M&amp;A: The firm expects Apple to make a play for Peloton Interactive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PTON#NASDAQ">PTON</a>). Peloton&#8217;s &#8220;loyal subscriber base of about 3 million users&#8221; will add about $1.7 billion to Apple's subscription revenue, and fits well into the company&#8217;s health and wellness segment.</li>
<li>Also, a company with a large-language model will likely acquire Reddit, Deepwater predicts.</li>
<li>IPO Market Rebound In The Cards: The number of IPOs will increase from 153 in 2023 to 200 in 2024, bring it on par with the 2019 levels.</li>
<li>Gaming Crown: Take-Two Interactive Software, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTWO#NASDAQ">TTWO</a>) will likely be the best-performing U.S. gaming stock in 2024 due to the anticipation of GTA VI.</li>
<li>AI To Muddle Election: Munster expects AI to negatively impact the <a href="https://www.benzinga.com/topic/2024-presidential-election">2024 presidential election,</a> as &#8220;intentionally misleading content will be released to interfere with the election (e.g., deepfakes).&#8221;</li>
</ul>
The Technology Select Sector SPDR&nbsp;Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) edged up 0.04% to $192,93, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data.</a>
Read Next: <a href="https://www.benzinga.com/markets/equities/23/12/36387459/semiconductor-stocks-soar-to-all-time-highs-on-track-for-strongest-year-since-2008-but-are-they-">Semiconductor Stocks Soar To All-Time Highs: On Track For Strongest Year Since 2008, But Are They Too Expensive Now?</a>
Image by nvodicka from Pixabay

CRWD

DDOG

PTON

TTWO

Apple To Release AI Siri, No Tesla Robotaxi, Reddit Acquisition, Deep Fakes Mar US Elections And More: Deepwater Unveils 2024 Crystal Ball

On <a href="https://www.cnbc.com/video/2021/08/31/final-trades-capital-one-paypal-gap-more.html">CNBC&#39;s &quot;Fast Money Halftime Report,&quot;</a> Pete Najarian picked Capital One Financial Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cof#NYSE">COF</a>) as his final trade. He sees an opportunity to buy the stock.
Liz Young is bullish on iShares Russell 2000 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwo#NYSE">IWO</a>). She particularly likes it for the health care exposure.
Josh Brown is a buyer of Paypal Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pypl#NASDAQ">PYPL</a>).
Stephanie Link likes the restructuring story in Gap Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gps#NYSE">GPS</a>).

PYPL

'Fast Money Halftime Report' Picks For August 31

Shares of iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>) saw some unusual options activity on Wednesday. Following the unusual option alert, the stock price moved down to $297.93. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: PUT</li>
<li>Expiration Date: 2021-09-17</li>
<li>Strike Price: $310.00</li>
<li>Volume: 414</li>
<li>Open Interest: 976</li>
</ul>
<h2>Three Ways Options Activity Is ‘Unusual'</h2>
One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset. 
"Out of the money" contracts are unusual because they are purchased with a strike price far from the underlying asset price. "Out of the money" occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.
<h2>Using These Strategies To Trade Options</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Analyzing iShares Russell 2000 Growth ETF's Unusual Options Activity

Shares of iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>) saw some unusual options activity on Thursday. Following the unusual option alert, the stock price moved up to $302.4. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: TRADE</li>
<li>Trade Type: PUT</li>
<li>Expiration Date: 2021-08-20</li>
<li>Strike Price: $290.00</li>
<li>Volume: 450</li>
<li>Open Interest: 1454</li>
</ul>
<h2>Three Ways Options Activity Is ‘Unusual'</h2>
One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer).
Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset. 
Contracts that are "out of the money" are also indicative of unusual options activity. "Out of the money" contracts occur when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made with the expectation that the value of the underlying asset is going to change dramatically in the future, and buyers and sellers will benefit from a greater profit margin. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Trading Options With These Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Unusual Options Activity Insight: iShares Russell 2000 Growth ETF

Shares of iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>) saw some unusual options activity on Friday. Following the unusual option alert, the stock price moved down to $292.93. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: PUT</li>
<li>Expiration Date: 2021-09-17</li>
<li>Strike Price: $275.00</li>
<li>Volume: 388</li>
<li>Open Interest: 0</li>
</ul>
<h2>Three Indications Of Unusual Options Activity</h2>
One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset. 
"Out of the money" contracts are unusual because they are purchased with a strike price far from the underlying asset price. "Out of the money" occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.
<h2>Trading Options With These Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Options

Flows into and out of exchange traded funds <a href="https://finance.yahoo.com/video/why-shouldnt-concerned-etf-flow-201257534.html">can be instructive</a>, but not always predictive. There are frequently instances of ETFs experiencing significant departures while those funds climb.
The iShares Russell 2000 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwm#NYSE">IWM</a>) is a prime example of an ETF that&#39;s surging while enduring hefty departures.
<h3>What Happened</h3>
IWM, the largest <a href="https://www.benzinga.com/money/best-small-cap-etfs/">ETF dedicated to small-cap stocks</a>, is up 15.58 percent year-to-date, but investors have pulled $3.89 billion from the fund. Only two U.S.-listed ETFs have seen larger year-to-date outflows.
Some investors may view outflows from IWM as a worrisome sign, and they&#39;re not entirely off-base in that thinking. Last year, small-cap stocks and ETFs entered bear markets before large-cap rivals, providing what proved to be an accurate warning about what was to be an ugly fourth quarter for stocks across all market capitalization segments.
<h3>Why It&#39;s Important</h3>
IWM&#39;s growth and value counterparts, the iShares Russell 2000 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwo#NYSE">IWO</a>) and the iShares Russell 2000 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwn#NYSE">IWN</a>), have also been beset by outflows this year. Year-to-date, outflows from IWO and IWN are $626.41 million and <a href="https://www.etf.com/etfanalytics/etf-fund-flows-tool">$538.62 million, respectively</a>. IWN and IWO are up an average of 15.87 percent this year.
To the point of investors often having knee-jerk reactions to ETF outflows:&nbsp;U.S. ETFs hauled in a combined $37 billion last week, an epic week by industry standards. IWM added $1.15 billion in assets for the week ended March 15, good for the tenth-best total among U.S. listed ETFs.
Data pertaining to leveraged small-cap ETFs do not indicate sizable bearish positioning. Sure, the Direxion Daily Small Cap Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tza#NYSE">TZA</a>), which tries to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-small-cap-bull-3x-etf">triple the daily inverse performance </a>of the Russell 2000 Index, saw inflows of $12.58 million for the 10 days ended March 15.
For the five days ended March 15, traders poured $9 million into TZA&#39;s bullish cousin, the Direxion Daily Small Cap Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tna#NYSE">TNA</a>).
<h3>What&#39;s Next</h3>
Some market observers believe there are valid reasons why small caps are surging this year while outpacing large caps.
&ldquo;Although YTD gains have extended to both large caps and small caps, it&rsquo;s no surprise the more economically sensitive Russell 2000 Index has outperformed as economic optimism has reasserted itself,&rdquo; FTSE Russell Managing Director Alec Young said&nbsp;<a href="https://www.ftserussell.com/blog/index-idea-pendulum-swing">in a recent note</a>.
&ldquo;Positive cyclical catalysts have included a dovish Fed policy pivot, a resilient U.S. consumer, hopes for easing U.S.-China trade tensions and a soft Brexit. Another factor favoring the Russell 2000 has been its lower 20-percent international sales footprint at a time of increased foreign economic uncertainty and dollar strength.&rdquo;
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/03/13374294/click-here-for-a-soaring-retail-etf">This Retail ETF Is On Fire</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/03/13374292/this-korea-etf-is-luring-traders">Traders Like This Exotic ETF</a>

What To Make Of Small-Cap ETF Flows

One of the main reasons why so many advisors and investors have ditched actively managed mutual funds in favor of passive exchange traded funds is cost.
Data confirm the average expense ratio on passive ETFs is significantly lower than that of the average actively managed mutual fund and that holds true across a variety of market capitalization segments, including small caps.
<h3>What Happened</h3>
Small-cap funds, be they active mutual funds or passive ETFs, that emphasize the growth factor are popular with advisors and investors. Thing is some actively managed small-cap growth funds carry high fees. Just look at the Alger Small Cap Growth Fund (ALSAX), which charges <a href="https://www.alger.com/Pages/Products.aspx?productCode=2061">1.38 percent per</a> year, or $138 on a $10,000 investment.
By <a href="https://www.morningstar.com/funds/XNAS/ALSAX/quote.html">some estimates</a>, that fee level is above average. ALSAX&#39;s category is small-cap growth and its investment style is mid growth, <a href="https://www.morningstar.com/funds/XNAS/ALSAX/quote.html">according to Morningstar</a>. That means the field of low-cost ETFs that are highly correlated to ALSAX is expansive.
<h3>Why It&#39;s Important</h3>
Data from <a href="https://www.raltin.com/t/ALSAX/">Raltin</a> indicate a slew of cost-effective ETFs sport intimate correlations to ALSAX. For example, the Invesco Russell MidCap Pure Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pxmg#NYSE">PXMG</a>) has a correlation of 0.94 to the active ALSAX, <a href="https://www.raltin.com/t/ALSAX/">according to Ralitn data</a>. PXMG has an expense ratio of 0.39 percent, or $39 on a $10,000 investment, and a four-star Morningstar rating compard to three stars on the Alger fund.
The active ALSAX tries to beat the Russell 2000 Growth Index. Rather than attempting to beat that index, investors can track it via the iShares Russell 2000 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwo#NYSE">IWO</a>). That ETF charges just 0.24 percent per year and has a correlation of <a href="https://www.raltin.com/t/ALSAX/">0.94 to ALSAX</a>.
Fees are a major consideration with a variety of equity funds, but those costs take on increased importance in the small-cap space because data suggest small-cap managers have a hard time beating their benchmarks. For the five yeas ended June 30, 2018, 92.9 percent of active small-cap managers lagged their benchmarks, <a href="https://us.spindices.com/documents/spiva/spiva-us-mid-year-2018.pdf">according to S&amp;P Dow Jones Indices</a>.
<h3>What&#39;s Next</h3>
Over the past year, 33 ETFs have correlations of 0.90 or more to ALSAX, <a href="https://www.raltin.com/t/ALSAX/p/etf/1yrsort/">according to Raltin data.</a> All of those funds have lower fees and many have annual expenses ratio below 0.50 percent.
Related Links
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/03/13322508/goldman-sachs-enters-thematic-etf-fray-with-5-new-funds">Goldman Launches 5 Thematic ETFs</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/03/13314705/another-esg-etf-enters-the-fold">A New ESG ETF Arrives</a>

PXMG

How To Save Big On Small-Cap Growth Funds

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