Greetings!
Below please find the ETF Spotlight newsletter for
the week of August 23, containing highlights of the research and
data on www.etfresearchcenter.com
as well as a recap of the past week's action in the ETF market. The focus of this week's edition is small vs. large cap sector funds. Feel free to share it with others who may be interested. |
In this week's issue
|
|
 Small vs. Large Cap Sectors
- Chart of the week: Small vs. Large Cap Sector P/Es
- Fund Focus: PowerShares S&P Small Cap Energy (XLES)
- Revisions, asset flows & short interest
- EPS estimates, growth rates and P/E multiples for major ETFs
- Market monitor - movers & categories
To download the full newsletter click here. |
| Chart of the week
|
|
Small versus Large Cap Sector P/E multiples
P/Es on Small & Large Cap Sectors  |
We compared valuations between each of the small cap sector ETFs (launched by PowerShares a few months ago) and their large-cap counterparts in the Select Sector SPDR family of funds. In every case, the small cap sector funds trade at a higher P/E multiple, in some cases significantly so.
The only small cap sector fund to currently enjoy a higher ALTAR Score than its large-cap counterpart is the Energy sector (XLES), the subject of this week's Fund Focus and topping our list of positive estimate revisions (see page 3 in full report).
To download the full newsletter, click here. |
|
Fund Focus |
|
PowerShares S&P Small Cap Energy (XLES)
With no integrated oil majors, the small cap index is comprised solely of oil services & equipment firms and hence its fortunes are even more volatile. But with rig utilization and day rates climbing and earnings estimates now on the rise it appears as if those fortunes are brightening. And, trading at just 1.0x book value and 4.3x estimated cash flow next year, XLES is currently the only small cap sector to enjoy a higher ALTAR Score than its large-cap equivalent Sector SPDR.
To download the full newsletter, click here.
|
