iShares Russell 2000 Value ETF (ARCA: IWN)

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Allianz chief economic adviser and well-known economist Mohamed El-Erian pays close attention to the bond market, as it can often be an indicator for future stock market performance and broader economic conditions.

El-Erian Says Bond Market Is Now More Consistent With Economy Evading &#39;Deep Recession&#39;

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ABBV

iShares Trust Barclays 20+ Year Treasury Bond Fund

On Monday&#39;s edition of CNBC’s “Halftime Report Final Trades,” Liz Young of BNY Mellon Investment Management cited iShares Russell 2000 Value ETF (NYSE: IWN) as her pick, even amid “great

CNBC&#39;s Final Trades: Russell 2000 Value, CVS, iTreasury Bond And This Biopharma

Small Cap

CLNE

JMIA

VUZI

On CNBC&#39;s &#34;Fast Money Halftime Report,&#34; Jenny Harrington advised a viewer to buy Medical Properties Trust, Inc. (NYSE: MPW) for a long term.

&#39;Halftime Report&#39; Traders Share Their Thoughts On Medical Properties Trust, Clean Energy Fuels Corp And More

Allianz chief economic adviser and well-known economist&nbsp;Mohamed El-Erian&nbsp;pays close attention to&nbsp;the bond market, as it can often be an&nbsp;indicator for&nbsp;future stock market performance and broader economic conditions. His latest social post suggests the bond market has correctly priced in the current <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36484173/top-economist-david-rosenberg-predicts-2024-economic-downturn-with-echoes-of-2007-a">economic outlook</a>.
What To Know: In a new <a href="https://twitter.com/elerianm/status/1742972096152777136">post</a> on X on Thursday, El-Erian flagged that the&nbsp;U.S. 10 Year Treasury was&nbsp;currently trading around&nbsp;4%.&nbsp;
&quot;A&nbsp;level that, compared to the recent lows, is more consistent with the economic outlook unless you believe in a rather deep recession for the US,&quot; El-Erian said.&nbsp;
Check This Out:&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36446499/el-erian-warns-merely-adding-fuel-to-chinas-tired-growth-engine-wont-bring-durable-">El-Erian Warns Merely Adding Fuel To China&#39;s &#39;Tired Growth Engine&#39; Won&#39;t Bring Durable Prosperity: &#39;Needs Deeper Reform&#39;</a>
In an <a href="https://www.cnbc.com/video/2023/12/04/my-hope-is-the-fed-targets-a-3-percent-inflation-instead-of-2-percent-says-mohamed-el-erian.html">interview</a> on CNBC&#39;s &quot;Squawk Box&quot; last month, El-Erian suggested that the Federal Reserve should target 3% inflation instead of 2% inflation, which would allow for a very soft landing.
At the time, the 10 Year Treasury yield was hovering around 4.25%. It continued&nbsp;to fall all the way down to around 3.8% as stocks rallied following the Fed&#39;s <a href="https://www.benzinga.com/top-stories/24/01/36478543/feds-december-minutes-spark-debate-on-future-rate-cuts-did-powell-let-the-cat-out-of-the-bag">dovish commentary on rates,</a>&nbsp;before bouncing back over the last week or so.
El-Erian told CNBC at the time that he&nbsp;wasn&#39;t anticipating a recession but expected the soft landing to be a bit bumpier than most were anticipating. It seems he still does not anticipate a &quot;deep recession&quot; and believes the bond market is&nbsp;aligned with the outlook for the economy.
At the beginning of 2023, El-Erian flagged the bond market, particularly the 2 Year Treasury Yield, as the <a href="https://www.benzinga.com/news/23/02/30883032/is-this-economist-back-from-the-future-top-market-pundit-reveals-how-to-predict-where-the-stock-mark">best predictor of future stock market performance</a>.&nbsp;
&quot;If it continues going up, I would be worried. If it comes back down toward 4% where we were not so long ago, I would be certainly more bullish,&quot; he said at the time.&nbsp;
The bond market is currently projecting a 62% chance of a rate cut in&nbsp;March,&nbsp;according to CME Group&nbsp;<a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html" target="_blank">data</a>.
Market Check: The&nbsp;SPDR S&amp;P 500 (ARCA:SPY) and&nbsp;Vanguard S&amp;P 500 ETF (ARCA:VOO) were both slightly negative for Thursday&#39;s session at last check, while the iShares Russell 2000 ETF (ARCA:IWM) was up about 0.15%, according to&nbsp;<a href="https://benzinga.grsm.io/gxjhpowx7zks">Benzinga Pro</a>.
Read Next:&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36485117/vanguard-predicts-bonds-to-make-strong-comeback-short-term-pain-can-lead-to-long-te">Vanguard Predicts Bonds To Make Strong Comeback: &#39;Short-Term Pain Can Lead To Long-Term Gain&#39;</a>
Photo:&nbsp;<a href="https://www.flickr.com/photos/imfphoto/" target="_blank">International Monetary Fund</a>&nbsp;on Flickr

El-Erian Says Bond Market Is Now More Consistent With Economy Evading 'Deep Recession'

On Monday&#39;s edition of CNBC&rsquo;s &ldquo;<a href="https://www.cnbc.com/video/2021/12/06/final-trades-abbvie-cvs-small-caps-more.html">Halftime Report Final Trades</a>,&rdquo; Liz Young of BNY Mellon Investment Management cited iShares Russell 2000 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwn#NYSE">IWN</a>) as her pick, even amid &ldquo;great volatility.&rdquo;
&ldquo;It has outperformed large cap value and performed in-line with large cap growth&rdquo; in 2021, Young said. &ldquo;I think it does better than both next year,&rdquo; she commented.
Sarat Sethi said&nbsp;booster shots were giving CVS Health Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvs#NYSE">CVS</a>) &ldquo;a shot in the arm for earnings.&rdquo; The company&rsquo;s earnings print, coming up in the next couple of weeks, should be &ldquo;a good catalyst&rdquo; for the stock, he added.
Stephen Weiss of Short Hills Capital Partners said he was short iShares 20 Plus Year Treasury Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tlt#NASDAQ">TLT</a>).
Joseph Terranova of Virtus Investment Partners named AbbVie Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/abbv#NYSE">ABBV</a>) has his pick, saying that the stock has mid-teens valuation and is &ldquo;about to break out above its January 2018 high.&rdquo;

CNBC's Final Trades: Russell 2000 Value, CVS, iTreasury Bond And This Biopharma

On Thursday, shares of iShares Russell 2000 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWN#NYSE">IWN</a>) saw unusual options activity. After the option alert, the stock price moved up to $159.3. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-08-20</li>
<li>Strike Price: $165.00</li>
<li>Volume: 1741</li>
<li>Open Interest: 1485</li>
</ul>
<h2>Three Indications Of Unusual Options Activity</h2>
Exceptionally large volume (compared to historical averages) is one reason for which options market activity can be considered unusual. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
Another sign of unusual activity is the trading of a contract with an expiration date in the distant future. Usually, additional time until a contract expires allows more opportunity for it to reach its strike price and grow its time value. Time value is important to consider because it represents the difference between the strike price and the value of the underlying asset. 
Contracts that are "out of the money" are also indicative of unusual options activity. "Out of the money" contracts occur when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made with the expectation that the value of the underlying asset is going to change dramatically in the future, and buyers and sellers will benefit from a greater profit margin. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.
<h2>Using These Options Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Movers

Unusual Options Activity Insight: iShares Russell 2000 Value ETF

iShares Russell 2000 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWN#NYSE">IWN</a>) shares experienced unusual options activity on Friday. The stock price moved down to $160.66 following the option alert. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-08-20</li>
<li>Strike Price: $160.00</li>
<li>Volume: 1004</li>
<li>Open Interest: 3889</li>
</ul>
<h2>Three Signs Of Unusual Options Activity</h2>
Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer).
The trading of a contract with an expiration date in the distant future is another sign of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset. 
Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Trading Options With These Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Analyzing iShares Russell 2000 Value ETF's Unusual Options Activity

iShares Russell 2000 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWN#NYSE">IWN</a>) shares experienced unusual options activity on Thursday. The stock price moved up to $162.06 following the option alert. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-08-20</li>
<li>Strike Price: $160.00</li>
<li>Volume: 1005</li>
<li>Open Interest: 4118</li>
</ul>
<h2>Three Signs Of Unusual Options Activity</h2>
Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset. 
"Out of the money" contracts are unusual because they are purchased with a strike price far from the underlying asset price. "Out of the money" occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.
<h2>Trading Options With These Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Options

On <a href="https://www.cnbc.com/video/2021/07/16/buy-hold-or-sell-medical-properties-askhalftime.html">CNBC&#39;s &quot;Fast Money Halftime Report,&quot;</a> Jenny Harrington advised a viewer to buy Medical Properties Trust, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mpw#NYSE">MPW</a>) for a long term. She bought it because it has consistently grown earnings in the 8% range. It has also grown the dividend by 3.5%.
Stephen Weiss said Vuzix Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vuzi#NASDAQ">VUZI</a>) and Jumia Technologies AG&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jmia#NYSE">JMIA</a>) are highly speculative. He still has positive returns in these names, but he has cut back. Weiss sees a very, very bright long-term future for Vuzix And Jumia, but they&#39;re not the right stocks for this market.
Jon Najarian would hold Clean Energy Fuels Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/clne#NASDAQ">CLNE</a>). He likes it after the big sell-off.
Rob Sechan said the underperformance in iShares Russell 2000 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwn#NYSE">IWN</a>) is going to persist for a little bit. He would wait a bit before buying and he prefers the large-cap stocks.

'Halftime Report' Traders Share Their Thoughts On Medical Properties Trust, Clean Energy Fuels Corp And More

On <a href="https://www.cnbc.com/video/2021/06/04/final-trades-las-vegas-sands-raytheon-technologies-microvision-more.html">CNBC&#39;s &quot;Fast Money Halftime Report,&quot;</a> Shannon Saccocia recommended Las Vegas Sands Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lvs#NYSE">LVS</a>) as a buy.
Liz Young wants to buy iShares Russell 2000 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwn#NYSE">IWN</a>). She said that small caps got hit the hardest and they will come out the strongest on the other side.
Jim Lebenthal is a buyer of Raytheon Technologies Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rtx#NYSE">RTX</a>).
Pete Najarian saw some call buying in Microvision, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mvis#NASDAQ">MVIS</a>). He said that everything in the automobile sector is doing very well.

MVIS

'Fast Money Halftime Report' Picks From June 4

The massive rally in the stocks of AMC Entertainment Holdings Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/amc#NYSE">AMC</a>) and GameStop Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gme#NYSE">GME</a>) as of Wednesday has resulted in a 30% year-to-date gain for the Russell 2000 value index, the Wall Street Journal <a href="https://www.wsj.com/articles/amc-rally-accelerates-as-stock-price-more-than-doubles-11622656821">reported</a>, citing Dow Jones Market Data.
What Happened: The surge in the two companies&rsquo; stocks has enabled the Russell 2000 value index to outperform its growth counterpart - the Russell 2000 growth index &mdash; which recorded a gain of just 3.8% through Wednesday, the report noted.
The Russell 2000 index is a widely used index of small-cap stocks &mdash; stocks of companies with relatively small market capitalizations.
See also: <a href="https://www.benzinga.com/money/buy-amc-stock/">How to Buy AMC Stock</a>
Video game retailer GameStop was the biggest holding in the $17 billion iShares Russell 2000 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwn#NYSE">IWN</a>) as of Tuesday, while movie theatre chain AMC Entertainment was the second-biggest holding, according to the WSJ report that&nbsp;cited figures from iShares. At the start of this year, both the stocks were not even ranked in the ETF&rsquo;s top 300 holdings.
Kevin Silverman, chief investment officer of Sterling Partners Equity Advisors, was quoted by WSJ as saying he expects the two Reddit-favorite stocks to be kicked off the iShares Russell 2000 Value ETF at the next annual rebalancing as they are no longer&nbsp;small-cap value stocks.
Russell is expected to inform investors of changes to the index this Friday, as per the report.
See Also: <a href="https://www.benzinga.com/markets/options/21/06/21394592/amc-shorts-get-smoked-and-options-traders-jump-in">AMC Shorts Get Smoked And Options Traders Jump In</a>
Why It Matters: The stocks that were the focus of retail investors on Reddit&rsquo;s forum r/WallStreetBets forum earlier this year are riding another wave higher as these investors attempt a new short squeeze.
The buying frenzy in AMC Entertainment and GameStop continued on Wednesday amid continued interest from retail investors, with AMC Entertainment&rsquo;s stock soaring 95% in the regular trading session and touching a new 52-week high of $72.62.
In the process, AMC&rsquo;s market capitalization surged to $28.17 billion <a href="https://www.benzinga.com/news/21/06/21402359/amc-dizzying-rally-on-wednesday-took-companys-valuation-rocketing-past-rival-stonk-gamestop">and overtook GameStop&rsquo;s market capitalization</a> of $19.98 billion.
Price Action: AMC Entertainment shares gained 95.2% in Wednesday&rsquo;s regular trading session to $62.55 and further rose 8.7% in the after-hours session to $68.00.
GameStop shares rose 13.3% in the regular trading session to $282.24.
Read Next: <a href="https://www.benzinga.com/general/biotech/21/06/21402531/what-is-going-on-with-clover-health-stock">What Is Going On With Clover Health Stock?</a>

Broad U.S. Equity ETFs

ETFs

AMC, GameStop Skyrocketing-Stocks Lead Russell 2000 Value Index To Outperform Growth Counterpart

Josh Brown On CNBC: Small-Cap Value Is Expected To Perform Well In A Biden Victory Scenario

On <a href="https://www.cnbc.com/video/2020/06/09/options-trader-bets-on-big-losses-for-small-caps.html">CNBC&#39;s &quot;Options Action,&quot;</a> Mike Khouw said&nbsp;he saw more than double the average daily options volume in iShares Russell 2000 Value Index (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwn#NYSE">IWN</a>) on Tuesday. The volume was a result of a single trade.
Somebody sold 2,500 contracts of the June $110 calls and bought 2,500 contracts of the June $100 puts for a total cost of 30 cents. The trade is going to lose money if the stock stays above $100 at the June expiration and the loss could be bigger than the premium paid if it trades above $110.
It can make money if IWN drops below $99.70 at the June expiration. Khouw explained that the trader is probably hedging from a potential decline of more than 6% by a week from Friday.

Mike Khouw Sees Unusual Options Activity In IWN

The latest round of 13F filings from institutional investors is out, revealing to the world the stocks that some of the richest and most successful investors have been buying and selling.
<h3>Takeaways From 13F Season</h3>
Investors who follow particular fund managers can easily look up what each was buying and selling in the quarter, but other investors may be more interested in overall themes from 13F filings. Each quarter, <a href="https://whalewisdom.com/report/heat_map">WhaleWisdom</a> tracks the stocks that were most bought and sold during the quarter, so here are some of the most popular stocks in the fourth quarter.
<ul>
<li>Walt Disney Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dis#NYSE">DIS</a>) was the hottest stock in the quarter, with 12 funds increasing their stakes and six funds selling.</li>
<li>Paypal Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pypl#NASDAQ">PYPL</a>) was another top stock pick among fund managers, with the number of buyers outnumbering the number of sellers four-to-one.</li>
<li>Alphabet, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>) (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) was the most popular FANG stock in the quarter, but David Tepper was among the Alphabet sellers.</li>
<li>Several fund managers made major adjustments to their ETF positions, including Tepper selling the XOP ETF. Smith and Buffett bought the SPY, while Soros sold it.</li>
<li>Tech stocks remained popular among fund managers, but they were mostly selling Facebook, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fb#NASDAQ">FB</a>) in the fourth quarter.</li>
</ul>
Here&rsquo;s a rundown of how the smart money was playing some of the most popular stocks last quarter.
<h3>David Einhorn&rsquo;s Greenlight Capital</h3>
Notable Q4 Buys/Increases:
<ul>
<li>DXC Technology Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dxc#NYSE">DXC</a>)</li>
<li>Chemours Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cc#NYSE">CC</a>)</li>
</ul>
Notable Q4 Sells/Reductions:
<ul>
<li>Altice USA Inc (NYSE: ATUS)</li>
<li>The Medicines Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mdco#NASDAQ">MDCO</a>)</li>
<li>Dillard&#39;s, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dds#NYSE">DDS</a>)</li>
<li>Voya Financial Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voya#NYSE">VOYA</a>)</li>
<li>Tempur Sealy International Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tpx#NYSE">TPX</a>)</li>
<li>AerCap Holdings N.V. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aer#NYSE">AER</a>)</li>
</ul>
<h3>David Tepper&rsquo;s Appaloosa Management</h3>
Notable Q4 Buys/Increases:
<ul>
<li>Alibaba Group Holding Ltd - ADR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>)</li>
<li>Micron Technology, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mu#NASDAQ">MU</a>)</li>
<li>Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>)</li>
<li>Intelsat SA (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/i#NYSE">I</a>)</li>
</ul>
Notable Q4 Sells/Reductions:
<ul>
<li>SPDR S&amp;P Oil &amp; Gas Explore &amp; Prod. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xop#NYSE">XOP</a>)</li>
<li>Boeing Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>)</li>
<li>PG&amp;E Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pcg#NYSE">PCG</a>)</li>
<li>Alphabet Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>) (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>)</li>
</ul>
<h3>Leon Cooperman&rsquo;s Omega Advisors</h3>
Notable Q4 Buys/Increases:
<ul>
<li>DuPont de Nemours, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dd#NYSE">DD</a>)</li>
<li>Energy Transfer LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/et#NYSE">ET</a>)</li>
<li>Ferro Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/foe#NYSE">FOE</a>)</li>
<li>Workday Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wday#NASDAQ">WDAY</a>)</li>
<li>Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>)</li>
</ul>
Notable Q4 Sells/Decreases:
<ul>
<li>Twin River Worldwide Holdings Inc (NYSE: TRWH)</li>
<li>CHIMERA INVT CO (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cim#NYSE">CIM</a>)</li>
<li>Marathon Petroleum Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mpc#NYSE">MPC</a>)</li>
</ul>
<h3>Barry Rosenstein&rsquo;s Jana Partners</h3>
Notable Q4 Buys/Increases:
<ul>
<li>Wright Medical Group NV (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wmgi#NASDAQ">WMGI</a>)</li>
</ul>
Notable Q4 Sells/Reductions:
<ul>
<li>Callaway Golf Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ely#NYSE">ELY</a>)</li>
<li>Bloomin&#39; Brands Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/blmn#NASDAQ">BLMN</a>)</li>
<li>Axalta Coating Systems Ltd (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axta#NYSE">AXTA</a>)</li>
<li>Zimmer Biomet Holdings Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/zbh#NYSE">ZBH</a>)</li>
<li>
<h3>Jeff Smith&rsquo;s Starboard Value</h3>
</li>
</ul>
Notable Q4 Buys/Increases:
<ul>
<li>SPDR S&amp;P 500 ETF Trust (NYSE: SPY)</li>
<li>NortonLifeLock Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nlok#NASDAQ">NLOK</a>)</li>
<li>Medtronic PLC (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mdt#NYSE">MDT</a>)</li>
<li>eBay Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ebay#NASDAQ">EBAY</a>)</li>
<li>Aecom (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/acm#NYSE">ACM</a>)</li>
<li>Cerner Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cern#NASDAQ">CERN</a>)</li>
</ul>
Notable Q4 Sells/Reductions:
<ul>
<li>Perrigo Company PLC (NYSE: PRGO)</li>
<li>RPM International Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rpm#NYSE">RPM</a>)</li>
<li>iShares Russell 2000 Value Index (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwn#NYSE">IWN</a>)</li>
<li>MGM Resorts International (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mgm#NYSE">MGM</a>)</li>
<li>iShares Russell Midcap Index Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwr#NYSE">IWR</a>)</li>
</ul>
<h3>Warren Buffett&rsquo;s Berkshire Hathaway</h3>
Notable Q4 Buys/Increases:
<ul>
<li>Kroger Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kr#NYSE">KR</a>)</li>
<li>Biogen Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/biib#NASDAQ">BIIB</a>)</li>
<li>SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>)</li>
<li>VANGUARD IX FUN/S&amp;P 500 ETF SHS NEW (NYSEARCA: VOO)</li>
<li>General Motors Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gm#NYSE">GM</a>)</li>
</ul>
Notable Q4 Sells/Reductions:
<ul>
<li>Wells Fargo &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>)</li>
<li>Goldman Sachs Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gs#NYSE">GS</a>)</li>
<li>Apple Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>)</li>
</ul>
<h3>George Soros&rsquo; Soros Fund Management</h3>
Notable Q4 Buys/Increases:
<ul>
<li>Activision Blizzard, Inc. (NASDAQ: ATVI)</li>
<li>Tiffany &amp; Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tif#NYSE">TIF</a>)</li>
<li>Campbell Soup Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cpb#NYSE">CPB</a>)</li>
<li>Boeing Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>)</li>
</ul>
Notable Q4 Sells/Reductions:
<ul>
<li>eBay Inc (NASDAQ: EBAY)</li>
<li>Peloton Interactive Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pton#NASDAQ">PTON</a>)</li>
<li>Financial Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlf#NYSE">XLF</a>)</li>
<li>SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>)</li>
</ul>
<h3>Carl Icahn&rsquo;s Icahn Capital</h3>
Notable Q4 Buys/Increases:
<ul>
<li>Icahn Enterprises LP Common Stock (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/iep#NASDAQ">IEP</a>)</li>
<li>Hertz Global Holdings Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/htz#NYSE">HTZ</a>)</li>
</ul>
Notable Q4 Sells/Reductions:
<ul>
<li>Occidental Petroleum Corporation (NYSE: OXY)</li>
<li>Freeport-McMoRan Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fcx#NYSE">FCX</a>)</li>
<li>
<h3>Bill Ackman&rsquo;s Pershing Square Capital</h3>
</li>
</ul>
Notable Q4 Buys/Increases:
<ul>
<li>Howard Hughes Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hhc#NYSE">HHC</a>)</li>
<li>Agilent Technologies Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/a#NYSE">A</a>)</li>
</ul>
Notable Q4 Sells/Reductions:
<ul>
<li>Starbucks Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbux#NASDAQ">SBUX</a>)</li>
</ul>
<h3>John Paulson&rsquo;s Paulson &amp; Co.</h3>
Notable Q4 Buys/Increases:
<ul>
<li>ViacomCBS Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/viac#NASDAQ">VIAC</a>)</li>
<li>Pretium Resources Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pvg#NYSE">PVG</a>)</li>
<li>Tech Data Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tecd#NASDAQ">TECD</a>)</li>
<li>Tiffany &amp; Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tif#NYSE">TIF</a>)</li>
<li>Sprint Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/s#NYSE">S</a>)</li>
</ul>
Notable Q4 Sells/Decreases:
<ul>
<li>United Technologies Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/utx#NYSE">UTX</a>)</li>
<li>LYFT Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lyft#NASDAQ">LYFT</a>)</li>
<li>PG&amp;E Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pcg#NYSE">PCG</a>)</li>
</ul>
Related Links:
<a href="https://www.benzinga.com/news/19/11/14821909/q3-13f-roundup-how-buffett-einhorn-ackman-and-others-adjusted-their-portfolios">Q3 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios </a>
<a href="https://www.benzinga.com/general/education/18/08/12204520/what-is-the-buffett-indicator">What Is The Buffett Indicator?</a>

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EBAY

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Q4 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios

Flows into and out of exchange traded funds <a href="https://finance.yahoo.com/video/why-shouldnt-concerned-etf-flow-201257534.html">can be instructive</a>, but not always predictive. There are frequently instances of ETFs experiencing significant departures while those funds climb.
The iShares Russell 2000 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwm#NYSE">IWM</a>) is a prime example of an ETF that&#39;s surging while enduring hefty departures.
<h3>What Happened</h3>
IWM, the largest <a href="https://www.benzinga.com/money/best-small-cap-etfs/">ETF dedicated to small-cap stocks</a>, is up 15.58 percent year-to-date, but investors have pulled $3.89 billion from the fund. Only two U.S.-listed ETFs have seen larger year-to-date outflows.
Some investors may view outflows from IWM as a worrisome sign, and they&#39;re not entirely off-base in that thinking. Last year, small-cap stocks and ETFs entered bear markets before large-cap rivals, providing what proved to be an accurate warning about what was to be an ugly fourth quarter for stocks across all market capitalization segments.
<h3>Why It&#39;s Important</h3>
IWM&#39;s growth and value counterparts, the iShares Russell 2000 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwo#NYSE">IWO</a>) and the iShares Russell 2000 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwn#NYSE">IWN</a>), have also been beset by outflows this year. Year-to-date, outflows from IWO and IWN are $626.41 million and <a href="https://www.etf.com/etfanalytics/etf-fund-flows-tool">$538.62 million, respectively</a>. IWN and IWO are up an average of 15.87 percent this year.
To the point of investors often having knee-jerk reactions to ETF outflows:&nbsp;U.S. ETFs hauled in a combined $37 billion last week, an epic week by industry standards. IWM added $1.15 billion in assets for the week ended March 15, good for the tenth-best total among U.S. listed ETFs.
Data pertaining to leveraged small-cap ETFs do not indicate sizable bearish positioning. Sure, the Direxion Daily Small Cap Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tza#NYSE">TZA</a>), which tries to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-small-cap-bull-3x-etf">triple the daily inverse performance </a>of the Russell 2000 Index, saw inflows of $12.58 million for the 10 days ended March 15.
For the five days ended March 15, traders poured $9 million into TZA&#39;s bullish cousin, the Direxion Daily Small Cap Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tna#NYSE">TNA</a>).
<h3>What&#39;s Next</h3>
Some market observers believe there are valid reasons why small caps are surging this year while outpacing large caps.
&ldquo;Although YTD gains have extended to both large caps and small caps, it&rsquo;s no surprise the more economically sensitive Russell 2000 Index has outperformed as economic optimism has reasserted itself,&rdquo; FTSE Russell Managing Director Alec Young said&nbsp;<a href="https://www.ftserussell.com/blog/index-idea-pendulum-swing">in a recent note</a>.
&ldquo;Positive cyclical catalysts have included a dovish Fed policy pivot, a resilient U.S. consumer, hopes for easing U.S.-China trade tensions and a soft Brexit. Another factor favoring the Russell 2000 has been its lower 20-percent international sales footprint at a time of increased foreign economic uncertainty and dollar strength.&rdquo;
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/03/13374294/click-here-for-a-soaring-retail-etf">This Retail ETF Is On Fire</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/03/13374292/this-korea-etf-is-luring-traders">Traders Like This Exotic ETF</a>

Small Cap Analysis

What To Make Of Small-Cap ETF Flows

There&rsquo;s no question the upcoming U.S. midterm election is one of the most significant near-term catalysts in the market. Here&rsquo;s a look at what investors can expect from the Nov. 6 elections and which markets may be on the move.
<h3>Height&rsquo;s Take</h3>
Control of both chambers of Congress is at stake. The most likely outcome is that&nbsp;Democrats will gain control of the House (a 70-percent chance) and Republicans will remain in control of the Senate (85-percent chance), according to Height Capital Markets.
In a divided Congress scenario, Height said&nbsp;a number of stocks are positioned to benefit from potential policy changes, including the following:
<ul>
<li>NRG Energy Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nrg#NYSE">NRG</a>)</li>
<li>Southern Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/so#NYSE">SO</a>)</li>
<li>Federal National Mortgage Association (OTC: <a class="ticker" href="https://www.benzinga.com/stock/fnma#OTC">FNMA</a>)</li>
<li>Centene Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cnc#NYSE">CNC</a>)</li>
<li>Vulcan Materials Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vmc#NYSE">VMC</a>)</li>
<li>Netflix, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nflx#NASDAQ">NFLX</a>)</li>
<li>Altria Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mo#NYSE">MO</a>)</li>
<li>Canopy Growth Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cgc#NYSE">CGC</a>)</li>
</ul>
At the same time, Height&nbsp;said a split Congress would also create the possibility of negative policy changes for the following stocks:
<ul>
<li>Bunge Ltd (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bg#NYSE">BG</a>)</li>
<li>Energy Transfer Equity LP Unit (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ete#NYSE">ETE</a>)</li>
<li>JPMorgan Chase &amp; Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>)</li>
<li>Enova International Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/enva#NYSE">ENVA</a>)</li>
<li>Pfizer Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>)</li>
<li>Casey&rsquo;s General Stores Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/casy#NASDAQ">CASY</a>)</li>
<li>Facebook, Inc.&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fb#NASDAQ">FB</a>)</li>
</ul>
<h3>Currency Implications</h3>
The U.S. dollar has been red-hot in 2018, and <a href="https://www.benzinga.com/government/18/10/12476847/what-the-us-midterm-elections-mean-for-currencies-everything-you-need-to-k">experts say</a> it will likely resume its rally if Republicans maintain control of both houses of Congress. Republicans are looking to issue another round of tax cuts, which could provide another stimulus for the U.S. economy and trigger another round of interest rate hikes. A Democratic win, on the other hand, would likely threaten Trump&rsquo;s trade agenda, potentially weakening the dollar.
Democrats have traditionally been more trade friendly &mdash; good news for the currencies of our trade partners.
<h3>Small-Cap Stock Risk</h3>
Small-cap stocks have underperformed large-cap peers during times of a divided government in Washington, according to <a href="https://www.marketwatch.com/story/what-democrats-retaking-congress-could-mean-for-stocks-2018-07-30">Goldman Sachs</a>.
Small-caps have historically generated average annual gains of about 9.5 percent during periods of divided U.S. governments compared to 21.8-percent annualized gains during periods in which the same party controls the White House and both houses of Congress. Since Republicans gained control in 2016, the iShares Russell 2000 Index (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwn#NYSE">IWN</a>) is up 30.6 percent.
<h3>Election Cycle Trends</h3>
Regardless of which party comes out on top in November, the general cyclical stock market trends surrounding midterm elections have historically been good news for investors. According to Deutsche Bank, over the past 80 years, from one month prior to midterm elections to two months following the elections, the S&amp;P 500 has averaged an 8-percent gain. That stretch includes just one net loss of 4 percent in 1978.
Unfortunately, analyst <a href="https://www.marketwatch.com/story/midterm-elections-usually-give-stocks-pause-in-september-but-pave-way-for-later-gains-2018-09-01">Binky Chadra</a> said in the same report that the sample size of 21 midterm elections is extremely small, and there are seasonal trends and other conflating data that may have contributed to the gains.
Related Links:
<a href="https://www.benzinga.com/news/18/10/12472290/brazilian-stocks-soar-on-election-results">Brazilian Stocks Soar On Election Results</a> 
<a href="https://www.benzinga.com/general/education/18/08/12204520/what-is-the-buffett-indicator">What Is The Buffett Indicator?</a>

Analyst Color

Futures

Previews

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Analyst Ratings

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Midterms And The Stock Market: Potential Winners, Losers From The Coming Election

For a good portion of this year, investors have been regaled with tales of alleged small-cap strength by way of the rising dollar, which implies small-cap stocks and the exchange-traded funds that hold them should be beneficiaries of rising interest rates.
That has not been the case, however, as the iShares Russell 2000 Index (ETF) (NYSE: <a class="ticker" href="/stock/iwm#NYSE">IWM</a>), the largest small-cap ETF, has fallen half a percent year-to-date, while the S&amp;P 500 is higher by nearly 1 percent.
 The iShares S&amp;P SmallCap 600 Index (ETF) (NYSE: <a class="ticker" href="/stock/ijr#NYSE">IJR</a>) has been better with a 1.5 percent year-to-date gain, but that is far from awe-inspiring.
<h3>What Would An Interest Rate Hike Mean?</h3>
With the Federal Reserve seemingly on course to raise interest rates in December, investors should be pondering what the near term holds for ETFs such as IJR and IWM.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/news/15/10/5948105/stocks-pare-gain-dollar-firms-after-fed-entertains-december-rate-hike">Stocks Pare Gain, Dollar Firms After Fed Entertains December Rate Hike</a></bzrelatedlink>
Unfortunately, coming up with a firm answer is not easy. On the upside, one rate hike from the Fed, regardless of timing, likely will not be the only factor in determining small-cap performance.
&ldquo;Whether or not the Fed decides to raise rates in December, January, or April is unlikely to be the primary determinant of how the broader U.S. market performs. However, there are certain segments of the market that are more sensitive to changes in monetary policy and may benefit from any delay by the Fed,&rdquo; said BlackRock Global Chief Investment Strategist Russ Koesterich <a href="https://www.blackrockblog.com/2015/11/08/market-segments-poised-benefit-fed-waits/">in a recent note</a>.
<h3>Investor Actions And Reactions</h3>
What is interesting is that investors have embraced small-cap ETFs in the current quarter and have been rewarded for that faith. Since the start of the <a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/10/5941515/somethings-afoot-with-small-cap-etfs">fourth quarter</a>, IWM has climbed 6.5 percent while raking in over $1.1 billion in new assets. IJR has hauled in $20.1 million in new assets on its way to a fourth-quarter gain of 6.8 percent.
Even with significant exposure to financial services stocks and the probably benefit smaller financials will see from higher interest rates, rising real rates are seen as a drag on small-cap stocks and ETFs.
&ldquo;The culprit: rising real rates, which tend to negatively impact small cap valuations more than those of large cap firms, as Bloomberg data show. Historically, small cap relative performance has been strongest when short-term rates&ndash;those controlled by the Fed&ndash;are falling,&rdquo; added Koesterich.
Refining the small-cap universe into value and growth in the fourth quarter, investors have preferred value. The iShares Russell 2000 Value Index (ETF) (NYSE: <a class="ticker" href="/stock/iwn#NYSE">IWN</a>) has added over $161 million in new assets this quarter, while its growth counterpart has lost assets.
IWN allocates nearly 44 percent of its weight to financial services stocks compared to a 25.6 percent weight to the same sector found in IWM.
Image Credit: <a href="https://pixabay.com/en/stock-market-us-banking-finance-649902/">Public Domain</a>

Intraday Update

Of Rate Hikes And Small-Cap ETFs

The operative word in that headline is &ldquo;some&rdquo; because it must be noted some small-cap exchange traded funds have delivered impressive returns this year, but broadly speaking, smaller stocks have been disappointed.

	Enter the phrase &ldquo;small-cap ETFs strong dollar&rdquo; into a search engine and you&#39;ll likely find plenty of articles from credible sources espousing the virtues of small-caps in a strong dollar environment. The theory is that smaller companies should thrive when the dollar rises because these companies generate the bulk of their revenue within the confines of U.S. borders.

	Well, that has been a theory for sure this year, but far from a law. The iShares Russell 2000 ETF (NYSE: <a class="ticker" href="/stock/iwm#NYSE">IWM</a>) and the iShares Core S&amp;P Small-Cap ETF (NYSE: <a class="ticker" href="/stock/ijr#NYSE">IJR</a>) are up an average of 1.6 percent, barely more than half the 2.5 percent returned by the S&amp;P 500. This is a glaring gap because on small caps are notoriously more volatile than their larger peers, meaning investors are not being adequately compensated for the risks associated with small-cap ETFs this year.

	Add to that, IWM and IJR are lagging while the PowerShares DB US Dollar Index Bullish Fund (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>), the Dollar Index tracking ETF, is up 6 percent year-to-date, dealing a blow to the aforementioned theory about small caps and the greenback. BlackRock Chief Investment Strategist Russ Koesterich <a href="http://www.blackrockblog.com/2015/08/11/challenge-of-small-cap-stocks/">notes </a>part of the problem is that small caps are proving vulnerable to rising interest rates.

	&ldquo;During earnings season, investors worried about the impact of a flattening yield curve on small cap banks, which make up roughly 25 percent&nbsp;of the Russell 2000, according to Bloomberg data. In addition, consistent with history small cap earnings multiples are proving more vulnerable to a tightening in monetary conditions. According to the Bloomberg data, in July, the trailing&nbsp;price-to-earnings ratio&nbsp;for the Russell 2000 contracted by roughly 2 percent, while S&amp;P 500 gains were supported by multiple expansion of roughly 2 percent,&rdquo; said Koesterich in a recent note.

	To be fair, there are pockets of strength among small caps, mainly the funds that emphasize growth. For example, the iShares Russell 2000 Growth ETF (NYSE: <a class="ticker" href="/stock/iwo#NYSE">IWO</a>) is up 6 percent this year, mirroring UUP&#39;s performance.

	That is not an engraved invitation to buy IWO right now though. IWO allocates 28.2 percent of its weight to healthcare stocks, the ETF&#39;s largest sector weight by 470 basis points over technology. In other words, it is fare to say the bulk of IWO&#39;s gains this year are attributable to the run-up in biotechnology stocks, a trade that <a href="http://www.benzinga.com/general/biotech/15/08/5748050/a-bad-week-for-biotech-was-great-for-this-etf">suddenly looks flimsy</a>.

	As for small-cap value, it has not been much of value this year as the iShares Russell 2000 Value ETF (NYSE: <a class="ticker" href="/stock/iwn#NYSE">IWN</a>) has tumbled 3.4 percent. Remember what Koesterich said about the yield curves impact on small-cap banks and then note IWN&#39;s 42.6 percent weight to the financial services sector.

PowerShares DB US Dollar Index Bullish Fund

Some Small-Cap ETFs Have Been Duds This Year

&ldquo;Price is what you pay. Value is what you get.&rdquo; &ndash; Warren Buffett

	Noted investors such as Warren Buffett have consistently attributed strong balance sheet characteristics and top financial ratios as a combination for long-term success.&nbsp;

	In contrast to the inherent magnetism of growth-oriented companies, many value-focused stocks fly under the radar and their share price may not be reflective of the company&rsquo;s strongest attributes.&nbsp; &nbsp;&nbsp;

	With that in mind, there are several exchange-traded funds designed to recognize value stocks across a number of different market capitalization categories.

	The iShares Russell 1000 Value ETF (NYSE: <a class="ticker" href="/stock/iwd#NYSE">IWD</a>) is the largest ETF designed to capitalize on undervalued companies.&nbsp; IWD has over $26 billion dedicated to a diverse array of 700 large and mid-cap stocks.&nbsp;

	This ETF charges a modest expense ratio of just 0.20 percent and top holdings include well-known names such as Exxon Mobil Corp (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>) and General Electric (NYSE: <a class="ticker" href="/stock/ge#NYSE">GE</a>).&nbsp; &nbsp;

	<a href="https://www.benzinga.com/imce?app=nomatter%7Cimceload%40imceInline.load#" title=""><img alt="iwd_0.png" height="284" src="https://www.benzinga.com/files/u79448/iwd_0.png" width="460" /></a>

	If your focus is on larger companies with attractive yields, the Vanguard Value ETF (NYSE: <a class="ticker" href="/stock/vtv#NYSE">VTV</a>) is a strong candidate.&nbsp;

	This ETF invests in 323 stocks according to the CRSP US Large Cap Value Index and has over $18.1 billion in total assets.&nbsp;

	VTV charges a rock bottom 0.10 percent expense ratio and its 30-day SEC yield is currently listed at 2.47 percent.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/etfs/sector-etfs/15/04/5438029/dig-into-ipo-etfs">Dig Into IPO ETFs</a></bzrelatedlink>

	Moving to smaller companies, the iShares Russell 2000 Value ETF (NYSE: <a class="ticker" href="/stock/iwn#NYSE">IWN</a>) has over $6.3 billion dedicated to 1,375 stocks within the well-known Russell 2000 index.&nbsp;

	An ETF of this nature hones in on companies with less than $2 billion in market capitalization showing relative value to their peers.&nbsp; The end result is a high sector weighting in financial stocks, which make up over 40 percent of the total assets in IWN.&nbsp;

	Lastly, the most prominent value-centric foreign stock ETF is the iShares MSCI EAFE Value ETF (NYSE: <a class="ticker" href="/stock/efv#NYSE">EFV</a>).&nbsp;

	This index is comprised of nearly 500 stocks from Europe, Australia, Asia, and the Far East that are thought to be undervalued by the market.&nbsp; EFV has over $2.9 billion in total assets and charges an expense ratio of 0.40 percent.

	While many of these value ETFs have underperformed their growth equivalent peers over the last year, they still represent a group of stocks with compelling fundamental characteristics.&nbsp; &nbsp;&nbsp;

4 Top Value ETFs For Your Portfolio

&nbsp;

	 
	Check out this week&rsquo;s&nbsp;<a href="http://www.moneylifeshow.com/SaveFiles1/Upload_Files/130805%20-%20Danger%20Zone.mp3" style="color: rgb(0, 123, 184);">Danger Zone Interview</a>&nbsp;with Chuck Jaffe of&nbsp;<a href="http://www.moneylifeshow.com/" style="color: rgb(0, 123, 184);">Money Life</a>&nbsp;and MarketWatch.com.


	 
	American Century Capital Portfolios, Inc: Small Cap Value Fund (MUTF:ACSCX) is in the Danger Zone this week. ACSCX is bad news for investors from almost any angle. ACSCX has extremely high fees, low quality holdings, and a significant portion of its holdings are not consistent with its stated style exposure.


	 
	ACSCX is the worst-rated fund in the&nbsp;<a href="http://blog.newconstructs.com/2013/07/23/best-worst-etfs-mutual-funds-small-cap-value-style/" style="color: rgb(0, 123, 184);">Small-Cap Value style</a>, which itself is the worst ranked fund style in my&nbsp;<a href="http://blog.newconstructs.com/2013/07/15/investment-style-rankings-for-etfs-mutual-funds-4/" style="color: rgb(0, 123, 184);">3Q13 style rankings report</a>. ACSCX gets my Dangerous&nbsp;<a href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/" style="color: rgb(0, 123, 184);">portfolio management rating</a>because itallocates 48% of its assets to Dangerous-or-worse stocks compared to just 8% in Attractive-or-better stocks. ACSCX&rsquo;s failure to allocate more to Attractive-or-better stocks is troubling as there are plenty (14% of the market cap) of stocks in the Small-Cap Value style that earn an Attractive or Very Attractive rating.


	 
	ACSCX&rsquo;s&nbsp;<a href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/" style="color: rgb(0, 123, 184);">overall rating</a>&nbsp;moves from Dangerous to Very Dangerous due to its abnormally high&nbsp;<a href="http://blog.newconstructs.com/2011/10/28/total-annual-costs-methodology/" style="color: rgb(0, 123, 184);">total annual costs</a>&nbsp;of 5.3%. ACSCX is the 48th most expensive mutual fund out of the 6,617 I cover. Normally such high costs lead to lower assets under management. No other fund ranked in the top 50 according to costs has more than $150 million under management. However, ACSCX has over $2 billion in assets. ACSCX&rsquo;s costs, in the form of a high front-end load and significant transaction fees, are less apparent than those for a fund with just a high expense ratio.


	 
	For such high costs, one would expect a huge amount of value added in the stock picking of ACSCX. It should be significantly different from the iShares Russell 2000 Value ETF (NYSE: <a class="ticker" href="/stock/iwn#NYSE">IWN</a>), its benchmark. Instead, ACSCX&rsquo;s top holding is, wait for it&hellip; IWN. Investors are paying high fees only to have the fund invest 2% of assets in IWN and another 1% in a money market fund. Only four out of ACSCX&rsquo;s 300 other holdings constitute more than 1% of its portfolio.


	 
	Among its other holdings, ACSCX has many that do not fall under the realm of &ldquo;value&rdquo; stocks by almost any measure. For instance, Compass Minerals (NYSE: <a class="ticker" href="/stock/cmp#NYSE">CMP</a>) has a price to earnings ratio of 26 and a price to book ratio of over 5. My DCF model shows that CMP would need to grow after tax profit (<a href="http://blog.newconstructs.com/2012/11/08/nopat-definition-and-formulae-for-net-operating-profit-after-tax-and-nopat-margin/" style="color: rgb(0, 123, 184);">NOPAT</a>) by 8% compounded annually for 12 years to justify its current valuation. CMP cannot realistically be described as a &ldquo;value&rdquo; stock at its current price, which is already down 17% over the past week.


	 
	With a PE of 30 and a price/book ratio of 85, Entravision Communications Corp (NYSE: <a class="ticker" href="/stock/evc#NYSE">EVC</a>) is another questionable &ldquo;value&rdquo; stock. It is also one of my least favorite stocks held by ACSCX and earns my Dangerous rating. EVC&rsquo;s financials are a mess. Its revenues are down over the past 10 years. Its debt and deferred tax liabilities are almost equal to its market cap. The company has $810 million in&nbsp;<a href="http://blog.newconstructs.com/2013/07/22/asset-write-downs/" style="color: rgb(0, 123, 184);">accumulated asset write-downs</a>&nbsp;(230% of net assets). Despite these poor fundamentals, EVC is priced for significant growth. To justify its valuation of ~$5.50/share, EVC would need to grow&nbsp;<a href="http://blog.newconstructs.com/2012/11/08/nopat-definition-and-formulae-for-net-operating-profit-after-tax-and-nopat-margin/" style="color: rgb(0, 123, 184);">NOPAT</a>&nbsp;by 17% compounded annually for 10 years.


	 
	ACSCX&rsquo;s impressive track record of performance has probably helped it attract investors. The fund is up 35% over the past year, slightly outperforming IWN. As I wrote in&nbsp;<a href="http://blog.newconstructs.com/2013/07/31/dont-bet-on-luck-active-management-underperforms/" style="color: rgb(0, 123, 184);">a recent article</a>, past performance is not useful for predicting future performance as high achieving fund managers rarely sustain good performance. My analysis of ACSCX&rsquo;s costs and holdings suggests that it will likely underperform going forward.


	 
	There are other classes of the American Century Small Cap Value Fund with lower costs, but even the cheapest one still earns a Dangerous rating. Investors should not have to pay high fees for a fund that holds poor stocks, an index ETF, and companies that fall outside of its stated purpose. Don&rsquo;t be fooled by past performance. If making money in the stock market was as easy as looking at last year&rsquo;s returns, we would all be rich. Due diligence reveals that ACSCX is a bad choice for investors.


	 
	Sam McBride contributed to this report


	 
	Disclosure: David Trainer and Sam McBride receive no compensation to write about any specific stock, sector, or theme.

Danger Zone 8/7/13: American Century Capital Small Cap Value Fund (ACSCX)

BRK.B

HSIC

YHOO

Tweet from Doug Kass: "Sticking with balance of my FDX short. This week I added to these shorts: NSM HSIC BRK.B, IWM, SPY. Initiated short in AXP trad sht in YHOO"

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		Check out my latest&nbsp;<a href="http://blog.newconstructs.com/wp-content/uploads/2012/12/121231-Danger-Zone.mp3" style="color: rgb(0, 123, 184);" target="_blank">Danger Zone interview</a>&nbsp;with Chuck Jaffe of MarketWatch.com.

		iShares S&amp;P MidCap 400 Growth Index Fund (NYSE:IJK)&nbsp;is in the Danger Zone this week because its holdings are much worse than the other mid-cap growth &ldquo;index&rdquo; ETFs.

		Do Not Trust ETF Labels &ndash; Even &ldquo;Index&rdquo; Labels

		Many ETFs are labeled &ldquo;index&rdquo; ETFs. Naturally, many investors assume that having &ldquo;index&rdquo; in the ETF&rsquo;s name means all the holdings are the same or the provider cannot influence the nature of the holdings, but that is not true.

		For example, of the three &ldquo;index&rdquo; ETFs in the mid-cap growth style, two get a Neutral rating while one gets a Dangerous rating. How is that possible if they are supposed to hold the same stocks? The answer is that they do not hold the same stocks.

		There is no overlap in the top 5 holdings among these three ETFs. Their portfolios are not close to being the same. And there is a meaningful difference in the quality of holdings.

		iShares S&amp;P MidCap 400 Growth Index Fund (NYSE:IJK) gets 2-stars or a Dangerous rating because it has dangerous-rated holdings. iShares Morningstar Mid Growth Index Fund&nbsp; (NYSE:JKH) and iShares Russell Midcap Growth Index (NYSE:IWP) get 3-stars and have neutral-rated holdings.

		The &ldquo;index&rdquo; label, for mid-cap growth ETFs, is misleading as it does not mean that these ETFs have the same portfolio of holdings.

		The point is that investors cannot trust the &ldquo;index&rdquo; label to mean that all the ETFs or mutual funds with that label hold a standard portfolio of stocks.

		The Danger Within

		Buying an ETF without analyzing its holdings is like buying a stock without analyzing its business and finances. As Barron&rsquo;s says, investors should know the&nbsp;<a href="http://www.newconstructs.com/nc/news/display.htm?task=view&amp;newsItemId=402880a82dd6e460012dd754baf60001" style="color: rgb(0, 123, 184);">Danger Within</a>. Put another way, research on ETF holdings is necessary due diligence because an ETF&rsquo;s performance is only as good as its holdings&rsquo; performance.

		PERFORMANCE OF ETF&rsquo;s HOLDINGs = PERFORMANCE OF ETF

		Note that no ETFs with a dangerous&nbsp;<a href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/" style="color: rgb(0, 123, 184);">portfolio management rating</a>&nbsp;earn an overall rating better than two stars. These scores are consistent with my belief that the quality of an ETF is more about its holdings than its costs. If the ETF&rsquo;s holdings are dangerous, then the overall rating cannot be better than dangerous because one cannot expect the performance of the ETF to be any better than the performance of its holdings.

		Find the ETFs with the worst overall ratings on my&nbsp;<a href="http://bit.ly/12y5qTj" style="color: rgb(0, 123, 184);">ETF screener</a>. More analysis of the&nbsp;<a href="http://blog.newconstructs.com/2012/10/22/4q-best-worst-etfs-mutual-funds-by-style-recap/" style="color: rgb(0, 123, 184);">Best Sector ETFs is here</a>.

		How To Avoid ETFs with the Worst Holdings

		Assessing an ETF&rsquo;s holdings is important because an ETF&rsquo;s performance is determined more by its holdings than its costs. Figure 1 shows the ETFs within each style with the worst holdings or&nbsp;<a href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/" style="color: rgb(0, 123, 184);">portfolio management ratings</a>. The styles are listed in descending order by overall rating as detailed in my&nbsp;<a href="http://blog.newconstructs.com/2012/10/11/investment-style-rankings-for-etfs-mutual-funds/" style="color: rgb(0, 123, 184);">4Q Style Rankings report</a>.
<div>

			Figure 1: Style ETFs With Worst Holdings
</div>

		<a href="http://blog.newconstructs.com/wp-content/uploads/2012/12/DangerZone20121231.jpg" style="text-decoration: underline; color: rgb(95, 146, 172);"><img alt="" class="aligncenter size-full wp-image-5171" height="181" src="http://blog.newconstructs.com/wp-content/uploads/2012/12/DangerZone20121231.jpg" style="border-style: none; display: block; margin: 1em auto;" title="DangerZone20121231" width="471" /></a>

		Sources: New Constructs, LLC and company filings

		My&nbsp;<a href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/" style="color: rgb(0, 123, 184);">overall ratings on ETFs</a>&nbsp;are based primarily on my&nbsp;<a href="http://blog.newconstructs.com/2011/11/22/stock-rating-system-new-constructs-methodology-for-rating-equities/" style="color: rgb(0, 123, 184);">stock ratings</a>&nbsp;of their holdings. My firm covers over 3000 stocks and is known for the due diligence done on each stock we cover.

		iShares&rsquo; ETFs appear more often than any other provider in Figure 2, which means they offer the most ETFs with the worst holdings. iShares Core S&amp;P Mid-Cap ETF (NYSE:IJH) has the worst holdings of all mid cap blend ETFs. iShares Russell 1000 Growth (NYSE:IWF), iShares S&amp;P 500 Value Index Fund &nbsp;(NYSE:IVE), iShares Russell 3000 Growth Index Fund &nbsp;(NYSE:IWZ), iShares S&amp;P MidCap 400 Growth Index Fund (NYSE:IJK), iShares Russell 2000 Growth (NYSE:IWO), iShares Russell Midcap Value Index (NYSE:IWS), iShares Russell 2000 Index Fund (NYSE:IWM), iShares Russell 2000 Value Index Fund (NYSE: <a class="ticker" href="/stock/iwn#NYSE">IWN</a>) have the worst holdings of all ETFs in their styles.

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Danger Zone 12/31/2012: iShares S&P MidCap 400 Growth Index Fund (IJK)

<a href="http://www.cnbc.com/id/45752007">CNBC Fast Money's</a> Brian Kelly said on the show that he would buy iShares Russell 2000 Value Index (<a class="ticker" href="/stock/etf#">ETF</a>) (NYSEARCA: IWN) on Thursday morning, but only if he sees a good jobless claims report. iShares Russell 2000 Value Index (<a class="ticker" href="/stock/etf#">ETF</a>) (<a class="ticker" href="/stock/iwn#">IWN</a>) gained 0.78% today, and it closed at $66.11.

Brian Stutland is a buyer of Ford Motor Company (NYSE: <a class="ticker" href="/stock/f#NYSE">F</a>). He thinks that it is going to $12. Ford Motor Company (<a class="ticker" href="/stock/f#">F</a>) jumped 3.19% today, and it closed at $10.66.

Steve Grasso likes Dominion Resources, Inc. (NYSE: <a class="ticker" href="/stock/d#NYSE">D</a>), and he wants to buy it tomorrow. Dominion Resources, Inc. (<a class="ticker" href="/stock/d#">D</a>) added 1.29%, and it closed at $52.79.

Guy Adami thinks that Church &amp; Dwight Co., Inc. (NYSE: <a class="ticker" href="/stock/chd#NYSE">CHD</a>) is a buy. Church &amp; Dwight Co., Inc. (<a class="ticker" href="/stock/chd#">CHD</a>) jumped 1.28% today, and it closed at $45.82. 

Stephen Weiss is bearish on euro and Australian dollar. He explained that with China falling apart, Australian dollar is going to become a very weak currency.

CNBC

Fast Money

Aberdeen Emerging Markets Telecommunications & Infrastructure Fund