SLYG: Growth Comes With Quality

seekingalpha05-03

syahrir maulana SLYG strategy SPDR S&P 600 Small Cap Growth ETF (NYSEARCA:SLYG) started investing operations on 09/25/2000 and tracks the S&P Mid-Cap 600 Growth Index. It has 345 holdings, a ...

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It has 345 holdings, a ...</p>\n\n<a href=\"https://seekingalpha.com/article/4688995-slyg-growth-comes-with-quality\">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>SLYG: Growth Comes With Quality</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\">\nSLYG: Growth Comes With Quality\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-03 19:52 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4688995-slyg-growth-comes-with-quality><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>syahrir maulana SLYG strategy SPDR S&P 600 Small Cap Growth ETF (NYSEARCA:SLYG) started investing operations on 09/25/2000 and tracks the S&P Mid-Cap 600 Growth Index. It has 345 holdings, a ...</p>\n\n<a href=\"https://seekingalpha.com/article/4688995-slyg-growth-comes-with-quality\">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":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://seekingalpha.com/article/4688995-slyg-growth-comes-with-quality","article_id":"2432975145","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=2432975145","pubTimestamp":1714737174,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"syahrir maulana SLYG strategy SPDR S&P 600 Small Cap Growth ETF (NYSEARCA:SLYG) started investing operations on 09/25/2000 and tracks the S&P Mid-Cap 600 Growth Index. It has 345 holdings, a distribut","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","JSML":"Janus Henderson Small Cap Growth Alpha ETF","FYC":"First Trust Small Cap Growth AlphaDEX Fund","SLYG":"SPDR S&P 600 Small Cap Growth ETF","FDN":"First Trust Dow Jones Internet I","BK4585":"ETF&股票定投概念","IWO":"罗素2000成长股指数ETF","BK4581":"高盛持仓","IJR":"标普小型股600指数ETF-iShares","VIOG":"Vanguard S&P Small-Cap 600 Growth ETF","ISCG":"iShares Morningstar Small-Cap Growth ETF","BK4550":"红杉资本持仓","VBK":"美国小盘成长股ETF-Vanguard","IJR.AU":"ISHARES S&P SMALL CAP ETF/AU","IJT":"标普小盘成长股600ETF-iShares"},"translate_title":"斯莱格：成长伴随着质量","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FYC":1,"IJR":1,"IJR.AU":1,"IJT":1,"ISCG":1,"IWO":1,"JSML":1,"SLYG":1,"VBK":1,"VIOG":1,"FDN":0.9},"content_text":"syahrir maulana SLYG strategy SPDR S&P 600 Small Cap Growth ETF (NYSEARCA:SLYG) started investing operations on 09/25/2000 and tracks the S&P Mid-Cap 600 Growth Index. It has 345 holdings, a distribution yield of 1.16% and an expense ratio of 0.15%. It is a direct competitor to iShares S&P Small-Cap 600 Growth ETF (IJT) and Vanguard S&P Small-Cap 600 Growth Index Fund ETF (VIOG), which track the same index. VIOG has the same expense ratio and IJT fee is marginally more expensive (0.18%). As described by S&P Dow Jones Indices, S&P 600 constituents are ranked in Value and Growth styles using three valuation ratios and three growth metrics. The valuation ratios are book value to price, earnings to price and sales to price. The growth metrics are sales growth, earnings growth, and momentum. By construction, 33% of the parent index constituents exclusively belongs to each style, and 34% belongs to both styles. The growth style subset serves as S&P Small Cap 600 Growth Index and is rebalanced annually. It is capital-weighted, with an adjustment for constituents belonging to both styles. For example, a company with a Value rank better than its Growth rank is given a larger weight in the Value Index than in the Growth Index. The fund's turnover rate in the most recent fiscal year was 48%. This article will use as a benchmark the parent index S&P Small Cap 600, represented by iShares Core S&P Small-Cap ETF (IJR). SLYG portfolio The heaviest sector in the portfolio is industrials (20% of asset value), followed by consumer discretionary (16.4%) and technology (14.4%). Compared to the parent index, SLYG underweights mostly financials, real estate and to a lesser extent consumer staples and utilities. It moderately overweights all other sectors. SLYG sector breakdown (Chart: author; data: SSGA, iShares) The top 10 holdings, listed in the next table with growth metrics, represent 10.9% of asset value. The top name weighs 1.3%, so the portfolio is well-diversified and risks related to individual companies are low.   Ticker Name Weight % EPS growth % TTM EPS growth % 5Y Sales Growth % TTM Sales Growth % 5Y   ATI ATI, Inc. 1.30 120.69 11.74 3.43 0.62   ENSG The Ensign Group, Inc. 1.16 -8.27 16.56 21.84 15.87   SPSC SPS Commerce, Inc. 1.14 16.62 20.97 18.89 16.68   AAON AAON, Inc. 1.10 72.79 31.82 31.47 21.91   MLI Mueller Industries, Inc. 1.10 -16.46 42.21 -16.35 6.40   FN Fabrinet 1.09 9.49 24.38 9.81 14.03   MTH Meritage Homes Corp. 1.05 -12.46 28.99 0.67 11.71   ANF Abercrombie & Fitch Co. 1.05 9999.00 41.99 15.76 3.58   IBP Installed Building Products, Inc. 0.98 10.87 37.48 4.07 15.76   SPXC SPX Technologies, Inc. 0.96 646.88 12.13 19.19 2.50   Click to enlarge Fundamentals SLYG has better growth metrics than the benchmark, in line with the underlying index description. As reported in the next table, it is more expensive regarding valuation ratios, although price-to-earnings is only marginally higher.     SLYG IJR   P/E TTM 15.93 15.22   Price/Book 2.48 1.67   Price/Sales 1.57 0.97   Price/Cash Flow 10.67 8.48   Earnings growth 24.66% 18.27%   Sales growth % 9.39% 5.57%   Cash flow growth % 20.90% 9.25%   Click to enlarge Data source: Fidelity In my ETF reviews, risky stocks are companies with at least 2 red flags among: bad Piotroski score, negative ROA, unsustainable payout ratio, bad or dubious Altman Z-score, excluding financials and real estate where these metrics are unreliable. With this assumption, risky stocks weigh 14% of asset value. According to my calculation of aggregate quality metrics (reported in the next table), portfolio quality is significantly superior to the small cap benchmark.     SLYG IJR   Altman Z-score 5.17 2.79   Piotroski F-score 5.80 5.39   ROA % TTM 7.18 3.52   Click to enlarge Performance Since 10/1/2000 SLYG has lagged the S&P 600 by almost 3% in annualized return, as reported in the next table. It also shows slightly higher risk metrics (maximum drawdown and volatility).     Total Return Annual Return Drawdown Sharpe ratio Volatility   SLYG 309.57% 6.16% -62.15% 0.33 21.37%   IJR 680.48% 9.10% -58.15% 0.46 19.61%   Click to enlarge However, the growth fund has moderately outperformed over the last 10 years: SLYG vs IJR, 10-year returns (Seeking Alpha) SLYG vs. competitors The next table compares characteristics of SLYG and five small-cap growth ETFs following various methodologies:  Vanguard Small Cap Growth ETF (VBK) iShares Russell 2000 Growth ETF (IWO) iShares Morningstar Small-Cap Growth ETF (ISCG) First Trust Small Cap Growth AlphaDEX Fund (FYC) Janus Henderson Small Cap Growth Alpha ETF (JSML)      SLYG VBK IWO ISCG FYC JSML   Inception 9/25/2000 1/26/2004 7/24/2000 6/28/2004 4/19/2011 2/23/2016   Expense Ratio 0.15% 0.07% 0.24% 0.06% 0.70% 0.30%   AUM $3.13B $35.58B $10.62B $538.35M $263.70M $209.56M   Avg Daily Volume $16.76M $82.18M $140.13M $2.06M $958.38K $688.08K   Holdings 345 622 1069 1004 266 201   Top 10 10.94% 8.08% 10.21% 5.52% 8.11% 26.43%   Turnover 48.00% 19.00% 35.00% 52.00% 140.00% 105.00%   Click to enlarge The next chart compares total returns, starting on 2/29/2016 to match all inception dates. SLYG is the second-best performer, less than 2% in total return, behind JSML. Except for IWO, which is lagging the pack, the difference in annualized return between these ETFs is hardly significant. SLYG vs competitors, since 2/29/2016 (Seeking Alpha) Over the last 12 months, SLYG also comes in second position: SLYG vs competitors, trailing 12 months (Seeking Alpha) Takeaway  SPDR S&P 600 Small Cap Growth ETF (SLYG) holds over 300 stocks of the S&P Small-Cap 600 Index with relative high growth and valuation. IJT and VIOG track the same index. The portfolio is well diversified across sectors and holdings, and quality metrics are superior to the benchmark. The fund has lagged the parent index since inception in September 2000, but outperformed it over the last 10 years. There is no significant difference between SLYG and 4 other small-cap growth funds regarding performance since 2016.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"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":"4.28.1","shortVersion":"4.28.1","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/2432975145"}