Finance Pros Are Getting Hot on This Sector Again

How to play it [View in browser]( BROUGHT TO YOU BY: Editor’s Note It’s Friday. Time to give you a stock pick from our sister newsletter, The Spill, so you can think about it over the weekend and maybe make a move Monday morning. While The Juice helps you be better with money across the board, The Spill focuses on stocks financial pros are researching and judges how good of buys they are. If you’re already sold, you can[sign up for The Spill – for free – here](. mailto:?body=Article URL: https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D577485?utm_medium=ic-nl&utm_source=105216 Proprietary Data Insights Financial Pros’ Top Small-Cap Growth ETF Searches in the Last Month Rank Name Searches #1 Vanguard Small-Cap Growth ETF 9 #2 iShares S&P Small-Cap 600 Growth ETF 2 #3 iShares Russell 2000 Growth ETF 1 #4 iShares S&P Mid-Cap 400 Growth ETF 1 #ad [You Need to Know About Alternative Investments]( Brought to you by [InvestorPlace Media]( [America's Next Super-Boom Is Here]( Eric Fry believes he just discovered America's next "Wealth Supercluster" and it's forming in the place you'd least expect. Investors are already flocking there for a chance at 1,000%+ returns. Here's how you could join them before it's too late... [Get the Rest of the Details Here]( Finance Pros Are Getting Hot on This Sector Again Historically, investors looked to small-cap stocks for growth. Big tech changed that over the last decade. But with heavyweights including Meta and Google cutting back on staff and expenses, financial pros have shifted their focus back to small businesses. As we researched small-cap ETFs, we found an unusual trend. While financial pros don’t typically search for small-cap growth tickers, our proprietary Trackstar database showed a slow but steady increase over the last month. That’s why we picked their top search in this category – the Vanguard Small-Cap Growth ETF (VBK) – for today’s newsletter. And don’t let the low search numbers fool you. Many financial pros search tickers outside the office, counting toward our retail segment, which searched for VBK 484 times. Key Facts About VBK - Net assets: $12.5 billion - 12-month trailing yield: 0.55% - Inception: January 26, 2004 - Expense ratio: 0.07% - Holdings: 691 VBK tracks the CRSP U.S. Small Cap Growth Index, which uses multiple factors to select and weigh stocks that rank between the 85th and 98th percentiles by market cap. The ETF’s top 10 holdings highlight its fairly even investment distribution: [Top holdings] Source: ETF.com Performance VBK has delivered solid returns over its lifetime, even beating the benchmark index a bit. The table below shows VBK’s average annual returns, including dividends, over multiple periods. [Market price] Source: Vanguard In five years, the ETF has returned 34.4%, while it’s done even better over the last three years, up 44.6%. Competition With different methodologies for small-cap growth selection, each of the following competitors offers a slightly different portfolio using a similar approach. - iShares S&P Small-Cap 600 Growth ETF (IJT): The small-cap growth index the IJT follows uses three growth factors: three-year change in earnings per share over price per share, three-year sales per share growth rate, and momentum (12-month share price percentage change). It weighs its holdings according to market capitalization. - iShares Russell 2000 Growth ETF (IWO): IWO divides the Russell 2000 small-cap index into growth and value subsets using two-year growth forecasts and five-year historical sales-per-share growth. - iShares S&P Mid-Cap 400 Growth ETF (IJK): Slightly more different from the rest, IJK follows the S&P 400 Mid Cap Index, then selects smaller companies with higher-growth characteristics. [Net assets] VBK is known for its low expense ratio, the lowest in the group. Plus, it’s the largest fund of the bunch. While its dividend yield isn’t great, it’s the top performer over a five-year period, save for the one mid-cap fund. [Banking Nightmare]( During and after the Great Financial Crisis of 2008, 485 U.S. banks went under. Here at Weiss Ratings, we warned about 484 — an accuracy rate of 99.8%. Now, we have a new warning. But this time, it's not just about a few hundred banks … it's about nearly every single bank in America … [Get all the details here]([Ad] Our Opinion 8/10 VBK is the best small-cap growth index of the group. But small-caps haven’t held up as well as other asset classes, which is why we dropped our rating to an 8/10. 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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.