SMLF: A Small Cap ETF Beating The Benchmark, But Lagging A Few Peers

seekingalpha03-26

syahrir maulana SMLF strategy iShares U.S. Small-Cap Equity Factor ETF (NYSEARCA:SMLF) started investing operations on 4/28/2015 and tracks the STOXX U.S. Small-Cap Equity Factor Index. It has 863 ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2422499699?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1283342758/image_1283342758.jpg","is_english":true,"pubTime":"2024-03-26 20:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2422499699","market":"hk","top_or_hot":-1,"title":"SMLF: A Small Cap ETF Beating The Benchmark, But Lagging A Few Peers","media":"seekingalpha","content":"<div>\n<p>syahrir maulana SMLF strategy iShares U.S. Small-Cap Equity Factor ETF (NYSEARCA:SMLF) started investing operations on 4/28/2015 and tracks the STOXX U.S. Small-Cap Equity Factor Index. It has 863 ...</p>\n\n<a href=\"https://seekingalpha.com/article/4680337-smlf-a-small-cap-etf-beating-the-benchmark-but-lagging-a-few-peers\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SMLF: A Small Cap ETF Beating The Benchmark, But Lagging A Few Peers</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSMLF: A Small Cap ETF Beating The Benchmark, But Lagging A Few Peers\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-26 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4680337-smlf-a-small-cap-etf-beating-the-benchmark-but-lagging-a-few-peers><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>syahrir maulana SMLF strategy iShares U.S. Small-Cap Equity Factor ETF (NYSEARCA:SMLF) started investing operations on 4/28/2015 and tracks the STOXX U.S. Small-Cap Equity Factor Index. It has 863 ...</p>\n\n<a href=\"https://seekingalpha.com/article/4680337-smlf-a-small-cap-etf-beating-the-benchmark-but-lagging-a-few-peers\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SMLF","symbol_name":"iShares U.S. Small Cap Equity Factor ETF","start_time":0,"source_url":"https://seekingalpha.com/article/4680337-smlf-a-small-cap-etf-beating-the-benchmark-but-lagging-a-few-peers","article_id":"2422499699","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1283342758/image_1283342758.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2422499699","pubTimestamp":1711454400,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"syahrir maulana SMLF strategy iShares U.S. Small-Cap Equity Factor ETF (NYSEARCA:SMLF) started investing operations on 4/28/2015 and tracks the STOXX U.S. Small-Cap Equity Factor Index. It has 863 hol","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SMLF":"iShares U.S. Small Cap Equity Factor ETF","TZA":"罗素2000指数三倍做空ETF","BK4581":"高盛持仓","IWN":"罗素2000价值股指数ETF-iShares","IWO":"罗素2000成长股指数ETF","FNDA":"Schwab Fundamental U.S. Small Co","CALF":"Pacer US Small Cap Cash Cows 100 ETF","SRTY":"罗素2000指数三倍做空ETF-ProShares","TNA":"罗素2000指数三倍做多ETF-Direxion","FDN":"First Trust Dow Jones Internet I","BK4585":"ETF&股票定投概念","TWM":"罗素2000指数两倍做空ETF","BK4534":"瑞士信贷持仓","XSVM":"Invesco S&P SmallCap Value with Momentum ETF","VBR":"Vanguard Small-Cap Value ETF","BK4535":"淡马锡持仓","AVUV":"Avantis U.S. Small Cap Value ETF","UWM":"罗素2000指数ETF两倍做多","BK4588":"碎股","BK4550":"红杉资本持仓","IWM":"罗素2000指数ETF","RWM":"罗素2000指数反向ETF"},"translate_title":"SMLF：一只小型ETF跑赢基准，但落后于一些同行","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IWM":1,"XSVM":1,"VBR":1,"SMLF":1,"AVUV":1,"FNDA":1,"FDN":1,"CALF":1,"RWM":0.6,"UWM":0.6,"TZA":0.6,"TWM":0.6,"TNA":0.6,"SRTY":0.6,"IWO":0.6,"IWN":0.6,"MRTYmain":0.6,"MNQmain":0.6},"content_text":"syahrir maulana SMLF strategy iShares U.S. Small-Cap Equity Factor ETF (NYSEARCA:SMLF) started investing operations on 4/28/2015 and tracks the STOXX U.S. Small-Cap Equity Factor Index. It has 863 holdings, an expense ratio of 0.15% and a 30-day SEC yield of 1.54%. As described in the prospectus by iShares, constituents are \"selected and weighted using an optimization process designed to maximize exposure to four target factors: momentum, quality, value, and low volatility.\" The score is calculated for each of the 4 factors:  The momentum score is based on price momentum, earnings momentum and earnings announcement drift. The quality score is based on gross profitability, share dilution, accruals, changes in net operating assets, carbon emissions intensity and greenhouse gas reduction targets. The value score is based on book value-to-price ratio, dividend yield, earnings yield, cash flow yield. The volatility score is based on prior 12 month volatility.   Moreover, some constraints are enforced to avoid excessive concentration in the top holdings and sectors. The underlying index is rebalanced quarterly. The portfolio turnover rate in the most recent fiscal year was 108%. This article will use as a benchmark the Russell 2000 index, represented by iShares Russell 2000 ETF (IWM). SMLF portfolio The top 3 sectors are industrials (19.3% of asset value), financials (15.8%) and consumer discretionary (15.3%). They are followed by technology (13.7%) and healthcare (11.1%). Other sectors are below 7%. The sector breakdown is not much different from the Russell 2000. Compared to the small cap benchmark, SMLF significantly overweights consumer discretionary and underweights mostly healthcare. SMLF Sector breakdown (chart: author; data: iShares) The top 10 equity holdings, listed below with valuation ratios, represent only 6.2% of asset value, and the heaviest position weighs less than 1%. Therefore, the fund is well-diversified across holdings and risks related to individual companies are very low.   Ticker Name Weight (%) P/E TTM P/E fwd P/Sales TTM P/Book P/Net Free Cash Flow Yield%   EME EMCOR Group, Inc. 0.76 26.12 24.63 1.31 6.67 20.89 0.21   DECK Deckers Outdoor Corp. 0.72 33.17 34.11 5.77 11.32 23.29 0   WSM Williams-Sonoma, Inc. 0.67 21.45 20.50 2.63 9.57 16.17 1.45   FR First Industrial Realty Trust, Inc. 0.62 25.13 36.76 11.24 2.69 N/A 2.84   JBL Jabil, Inc. 0.62 11.25 15.68 0.52 6.26 20.08 0.24   EVR Evercore, Inc. 0.58 30.26 17.86 3.20 4.95 26.18 1.58   RS Reliance, Inc. 0.58 14.61 16.57 1.30 2.48 19.90 1.33   DKS Dick's Sporting Goods, Inc. 0.56 18.18 16.70 1.42 7.03 25.90 1.99   NTNX Nutanix, Inc. 0.56 N/A 60.22 9.53 N/A 48.93 0   BPOP Popular, Inc. 0.55 11.32 9.99 1.60 1.20 18.69 2.91   Click to enlarge Despite the valuation metrics embedded in the strategy, the usual valuation ratios are not much different from the benchmark. In fact, they are a bit more expensive, as reported in the next table. Nonetheless, earnings growth (which is a component of the momentum factor) is materially higher.     SMLF IWM   Price/Earnings TTM 15.53 15.2   Price/Book 2.2 1.95   Price/Sales 1.26 1.22   Price/Cash Flow 9.37 8.94   Earnings growth 25.64% 19.85%   Click to enlarge Source: Fidelity. Performance Since 5/5/2015, SMLF has outperformed the Russell 2000 by 2.6% in annualized return, and shows a slightly lower volatility (measured as standard deviation of monthly returns in the table below). Maximum drawdowns are similar, though.     Total Return Annual Return Drawdown Sharpe ratio Volatility   SMLF 137.54% 10.22% -41.89% 0.49 19.69%   IWM 91.46% 7.58% -41.13% 0.36 21.05%   Click to enlarge SMLF beats the benchmark by more than 7% over the last 12 months: SMLF vs IWM (Seeking Alpha) Competitors The next table compares characteristics of SMLF and 5 factor-based small-cap ETFs implementing various strategies:  Vanguard Small-Cap Value ETF (VBR) Avantis U.S. Small Cap Value ETF (AVUV) Pacer US Small Cap Cash Cows 100 ETF (CALF) Schwab Fundamental US Small Co. Index ETF (FNDA) Invesco S&P SmallCap Value with Momentum ETF (XSVM).      SMLF VBR AVUV CALF FNDA XSVM   Inception 4/28/2015 1/26/2004 9/24/2019 6/16/2017 8/15/2013 3/3/2005   Expense Ratio 0.15% 0.07% 0.25% 0.59% 0.25% 0.36%   AUM $979.96M $52.94B $10.51B $9.40B $8.12B $764.54M   Avg Daily Volume $3.70M $111.61M $65.69M $121.67M $19.29M $4.43M   Holdings 840 858 777 103 1013 119   Top 10 6.52% 5.81% 8.96% 20.45% 3.94% 14.37%   Turnover 108.00% 16.00% 7.00% 101.00% 24.00% 86.00%   Click to enlarge SMLF has the second lowest fee behind VBR, and it has the highest turnover. The next chart plots total returns, starting on 9/30/2019 to match all inception dates. CALF is ahead of the competition, whereas SMLF is among three lagging funds. SMLF vs. Competitors since 9/30/2019 ( Seeking Alpha) Over the last 12 months, SMLF does not much better relative to peers, staying in the middle of the pack. SMLF vs. Competitors, 12-month return (Seeking Alpha) Takeaway iShares U.S. Small-Cap Equity Factor ETF implements a sophisticated multi-factor strategy taking into account momentum, quality, value and volatility. SMLF is well-diversified across sectors and holdings. It has outperformed the small cap benchmark Russell 2000 since its inception. Nonetheless, it has lagged at least 3 factor-based small cap ETFs since 2019: CALF (focused on cash flow), XSVM (momentum-based) and AVUV (value and quality). SMLF was listed 9 years ago and its track record covers mostly a strong bull market: past performance might not be representative of its potential on the long term.  Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2422499699"}