Greetings!
Below please find the ETF Spotlight newsletter 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 domestic mid-cap ETFs.
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In this week's issue
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 Mid-Cap ETFs
- Chart of the week: Domestic Mid-Cap ETFs
- Fund Focus: Guggenheim Mid-Cap Core (CZA)
- Revisions, asset flows & short interest
- 2011 book value per share estimates, return on equity, and price-to-book value multiples for major ETFs
- Market monitor - movers & categories
To download the full newsletter click here.
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| Chart of the week |
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Domestic Mid-Cap ETFs
It seems that mid-cap stocks are rarely mentioned in the frequent debate about large-cap versus small-caps, despite the fact that over the past 10 years stocks in the SPDR S&P MidCap 400 (MDY) have handily beaten both those in the S&P500 SPDR (SPY) and iShares Russell 2000 (IWM).
This week's chart shows the price-to-book value multiples for the 10 domestic mid-cap ETFs we cover (excluding mid-cap style funds). Values range from 1.6x to 2.3x, with most around 1.8x, including the Guggenheim Mid-Cap Core (CZA), which stands out because of its high ALTAR ScoreTM. It is the subject of this week's Fund Focus.
Download the full newsletter here.
Chart: Domestic Mid-Cap ETFs
Price-to-book value multiples, 2010E
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| Fund Focus |
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Guggenheim Mid-Cap Core (CZA)
Unlike the well-known S&P MidCap 400 index, this fund of 100 mid-cap stocks can include MLPs and ADRs (about 14% and 6% of assets, respectively). The fund, formerly known as the "Claymore/Zacks Mid Cap Core" ETF, is also relatively overweight in Energy and underweight Tech stocks.
More importantly, these firms exhibit higher and more stable levels of profitability over the course of the business cycle--enabling them to post a better record of growth in sales, EPS, DPS and book value over the past five years--yet they trade at similar valuations. As a result CZA enjoys a high ALTAR ScoreTM among mid-cap ETFs.
To download the full newsletter, click here.
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