Small-cap Etfs: Search Beyond The 2000|seeking Alpha

visite site Investors should consider small-cap exchange traded funds beyond ones that reflect the Russell 2000 Index as the popular benchmark's shortcomings may cause it to underperform other indices. The Russell 2000 Index has trailed the S&P SmallCap 600, MSCI USA Small Cap and CRSP U.S. Small Cap indices by over an annualized 1.4% from the end of June 2011 through January 2015, according to Morningstar analyst Alex Bryan. Bryan argues that the Russell 2000 incurs implicit transactions that could undermine performance. Specifically, as the index rebalances its holdings all at once, the concentrated trades could impact the price of the underlying holdings, which cause a drag on overall performance. "The Russell 2000 Index is one of the most widely followed U.S. small-cap indexes and reconstitutes itself on a single day each year," Bryan said.

The index provider would rebalance both its Russell 1000 and Russell 2000 in response to new market-capitalization weights. Consequently, investors can anticipate the actions of the Russell 2000 indexer to bid up prices on new additions and bid down deletions between the end of May and the effective changes in hyperlink June. A study conducted by Yen-Cheng Chang found a 5% increase in price among stocks in the Russell 1000 to be added to the Russell 2000 in June from 1996 to 2012. The study also revealed a 5.4% decrease in price among stocks to be moved from the Russell 2000 to the Russell 1000. Index arbitragers have capitalized on the index changes by front-running trades. However, Petajisto argues that the arbitragers help smooth out transaction costs since index managers' trades would cause sudden spikes without smaller players to build a market.

Heard Of Brandywine Realty? This Analyst Thinks The REIT Is Worth Buying - Yahoo Finance

Brandywine Realty Trust (NYSE: BDN ) is a $2.8 billion cap office REIT which owns and manages a portfolio of 286 properties totaling 24.1 million SF. View gallery . Source: Company Presentation The company portfolio is weighted toward Mid-Atlantic markets, with assets located in Philadelphia, Washington, D.C., New Jersey, Austin, Texas and California. Tale Of The Tape During the past 12 months, Brandywine has only posted modest gains compared to the broader market, or SPDR S&P 500 (NYSE: SPY ), and the overall REIT sector, represented by the Vanguard REIT Index EFT (NYSE: VNQ ). View gallery . Brandywine shares have traded in a range of $13.77-$17.13 over the past 52 weeks and closed at $15.85 on Friday, February 27. Argus Research - Buy Rating, $18 PT Argus Research published a report on February 27, reiterating its Buy rating and $18 price target, noting "that Brandywine shares are attractively valued at current prices near $16." Based on the stock's recent closing price, the Argus target represents a ~14 percent upside, plus a 3.8 percent dividend, for a ~17.8 percent total return in 2015. Related Link: 3 High-Yield mREITs Wall Street Is Watching Brandywine Q4 Results - Key Takeaways On February 4, Brandywine posted Q4 2014 "FFO of $0.30 per diluted share, up from $0.29 in 4Q13 and above the consensus of $0.28," according to the company. "Revenue rose 6.6% from the prior-year period and same-store cash NOI visit rose 2.0%." At the end of 4Q14, occupancy was 91.4%, up 190 basis points from the end of 4Q13 and 250 basis points sequentially.

Are All S&P 500 ETFs the Same? -

As the first widely used ETF, the Spiders represent the biggest exchange-traded fund in the ETF universe, with 918 million outstanding shares representing $194 billion in assets. It's also the most actively traded S&P 500 ETF, with average daily volume of about 132 million shares. The fund has a gross expense ratio of about 0.11%, but the fund's manager has agreed to waive part of its management fee, leading to net expenses of just 0.0945%. That means you'll pay just $9.45 for every $10,000 you invest in the Spiders, which is a far cry from the $100 or more that some actively managed funds charge. As big as the Spiders are, though, they're not your only choice for an S&P 500 ETF. Its price is relatively close to the Spiders, as it also was set up to reflect about 10% of the index's value. It isn't as actively traded as the Spiders, though, with just 5 million shares in average daily volume.