We've mentioned several times that small-cap stocks are a compelling investment immediately following a recession. History has proven this fact several times and the worse the recession, the better the subsequent performance of small-caps during the ensuing recovery. Right now, the economy is in the nascent stages of a recovery following the most vicious recession in at least three decades and that means it's a good time to take a look at small-caps.
ETF Issuer PowerShares To Launch 10 New Small-Cap ETFs
ETF issuer PowerShares is hoping to capitalize on this trend with plans to launch 10 new sector-specific small-cap ETFs. The new offerings will track S&P small-cap indexes for the following sectors: Consumer discretionary, consumer staples, energy, financials, healthcare, industrials, information technology, materials, telecoms and utilities.
The stocks that the ETF will hold will have market values ranging from $250 million to $1.2 billion, according to press reports. We're big believers in the small-cap theme for 2010 as evidenced by several of our holdings in the ETF Profit Report portfolio. Since the small-cap universe can be tough to navigate for retail investors, we think ETFs are the way to go to capture the rapid growth opportunities offered by small, inexpensive stocks.
Disclosure: No positions
- More on choosing the right ETF
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