The Most Popular ETF The Juice Never Talks About

That ends today in a not so “small” way [View in browser]( [The Juice Logo] BROUGHT TO YOU BY: [Logo]( Proprietary Data Insights Top ETF Searches This Month Rank Ticker Name Searches #1 [SPY]( SPDR S&P 500 ETF 287,437 #2 [QQQ]( Invesco QQQ 148,646 #3 [VOO]( Vanguard S&P 500 ETF 44,625 #4 [SOXL]( CoStar Group 39,013 #5 [IWM]( iShares Russell 2000 ETF 32,306 #ad [Navigating Market Volatility: The Alt Advantage]( Brought to you by [Stansberry Research]( [Google CEO: This Will Be Bigger Than Electricity]( [ Stansberry Research - Google CEO: This Will Be Bigger Than Electricity]( Google's CEO Sundar Pichai says AI will have a more profound effect on society, "than electricity or fire." PwC - one of the world's leading technology consultants - projects AI will generate over $15.7 trillion in new wealth before 2030. That would make AI worth 7.5x the American internet economy. But if you're buying Microsoft or NVIDIA to profit - you're missing the big picture. After 50 years on Wall Street, I'm going public with another way to profit on the coming $7 trillion A.I. boom. It's an under-the-radar stock reshaping a projected $109 billion industry - And, I believe, has far more potential than the AI stocks most investors are focused on in the days ahead. [To get its name and ticker symbol for free - just click here.]( The Most Popular ETF The Juice Never Talks About In recent weeks, we have covered two of the main crises facing the United States. The housing crisis. And the retirement crisis. Check out The Juice’s [archives]( to read some of those installments. Because we like to balance acknowledgement and assessment of these crises with optimism and solutions, we also spend a lot of time discussing investment approaches, strategies and options. For example, in yesterday’s Juice, [we defined and discussed smart beta ETFs](. Tomorrow, we’ll look inside the ETF we featured in that Juice, the Schwab US Dividend Equity ETF (SCHD). While SCHD ranks high in Trackstar — over the last month investors have conducted roughly 21,465 searches across the platforms of our 100+ financial media partners — it doesn’t rank as high as the names in today’s Trackstar top five. To that end, we’d like to apologize to the family and friends of the iShares Russell 2000 ETF (IWM), as well as IWM itself, for ignoring this popular ETF for so long. We have no excuse other than to say we have been focused elsewhere. Particularly on the leaders of the broad market. And, small caps stocks, which are what IWM invests in by passively tracking the Russell 2000 Index, haven’t performed all that well. Check out the five-year, one-year, six-month, YTD, and one-month returns for IWM as well as the SPDR S&P 500 ETF (SPY) and Invesco QQQ ETF (QQQ), as of the end of last week. Ticker Five-year One-year Six-month YTD One-month IWM +25.8% +18.5% +17.2% +1.2% -0.9% SPY +73.9% +26.2% +17.4% +8.2% -0.4% QQQ +127.8% +37.7% +17.9% +8.2% Flat Over shorter periods, IWM has become a little more competitive. So, as the leaders of the stock market (do we even need to repeat these mega and large cap tech names who also lead AI?) falter here and there, maybe the landscape is shifting. One way to illustrate this is by looking at the S&P 500 Equal Weight Index, which tracks the S&P 500 stocks equally, not by market cap. Therefore, the returns aren’t skewed wildly by the biggest names in the index. One of the leading S&P 500 [equal weight ETFs]( is the Invesco S&P 500 Equal Weight ETF (RSP). RSP is no longer getting trounced by SPY and QQQ. In fact, it recently hit an all-time high. Of course, this doesn’t say much about small caps. But it does say that the market might be spreading out a bit more. So it might make sense to broaden your exposure to a wider swath of stocks beyond the big tech leaders. This includes other large cap stocks, but also small cap stocks. Just as there’s some talk about returning to dividend stocks (especially if and when interest rates come down meaningfully) there’s talk that small caps might be on the verge of having their day. For example, here’s one take from Fidelity Investments: … as of mid-March the Russell 2000 Index of small companies was still about 18% below its all-time peak, which it set in November 2021 … Of course, the upside of sluggish performance is often more attractive valuations. “The valuation gap between small caps and large caps has been extreme,” says Denise Chisholm, Fidelity’s director of quantitative market strategy … Chisholm … indicates that small-cap stocks are priced in anticipation of a recession, and could have plenty of room for recovery in a soft-landing scenario. In the past, when valuation spreads have been this wide, the Russell 2000 has produced average returns of almost 40% over the following 12 months, according to Chisholm’s research. Chisholm thinks “risk-reward tradeoff is very skewed in favor of small caps.” And we agree. Her analysis goes on to say: Any eventual cut in interest rates—which the Fed has indicated is likely to be on the table at some point this year—might only stack the odds further in small caps’ favor. “Small caps have historically benefited more than large caps from the first rate cut of a cycle,” says Chisholm, based on her research into market history. “And their advantage has been even greater when earnings also improved.” Historically, she says, small caps have beaten large caps more than 75% of the time in periods with similar market dynamics. Interesting. That’s a lot to digest. So, next week, we’ll dig deep into IWM and discuss some of the stocks it owns. We’ll also broaden our small cap coverage by looking at ETFs that own dividend-paying small cap stocks. It might be the time to start working these ETFs — or others like them — into your portfolio. [Dive into Expert Picks - We Spill the Best Daily!]( Tired of stock search exhaustion? We've got you covered! We keep an eye on FinPros, distill their top picks, and serve you one daily. Make your inbox the go-to for expert insights. [Sign up today.]( The Bottom Line: We’re the first to admit that it’s easy to get caught up in [the tech leaders powering and leveraging artificial intelligence](. This approach makes perfect sense and we think it will continue to, over the long-term, with some bumps in the road. Markets, after all, don’t go straight up. Or, they go straight up until they don’t. At least for a little while. So, it often makes sense to diversify. We spend a lot of time talking about how to do that with [dividend stocks, via ETFs](. And now we will start doing likewise by focusing a bit on the small caps. And, as we’ll show next week, you can diversify quite nicely in the space via just a couple ETFs or so. [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D615343?utm_medium=ic-nl&utm_source=118367 ) News & Insights Freshly Squeezed - [2 Small-Cap Stocks With 40% to 60% Upside]( - [What Are Smart Beta ETFs?]( - [14 Best Financial Sector Dividend Stocks To Invest In]( - [Check Out The Juice’s Favorite ETF Screener]( [News & Insights-facebook-share]( [News & Insights-twitter-share]( [News & Insights-linkedin-share]( [News & Insights-email-share](mailto:?body= https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D615343?utm_medium=ic-nl&utm_source=118367 ) [We want to hear from you. Let us know your thoughts by clicking here]( [Pixel] [InvestingChannel Logo](#) Follow us on: [Facebook Logo]( [LinkedIn Logo]( [Twitter Logo]( [Instagram Logo]( To ensure delivery of all emails, [allow us on your list](. Manage your subscriptions with our [preference center](. [Unsubscribe here.]( View our privacy policy [here](. Copyright ©2024 InvestingChannel. All rights reserved. 1325 Avenue of the Americas, Floor 27 & 28 New York, New York 10019 Disclaimer: This is not investment advice. This InvestingChannel, Inc., newsletter is for information purposes only and is based on opinion. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or eliminate losses. InvestingChannel, Inc., makes no representation or implication that using any of the methodologies or systems in this newsletter will generate returns or insure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions. [Link](