Core Viewpoint - The Vanguard Small-Cap ETF (NYSEARCA: VB) is recommended for a buy rating, with expectations that small-cap stocks are poised for a new cycle of outperformance against large-cap stocks due to their low valuation levels and strong fundamentals [1]. Group 1 - Small-cap stocks are anticipated to outperform large-cap stocks in the near future [1]. - The low valuation levels of small-cap stocks are highlighted as a key factor for their potential outperformance [1]. - Strong fundamentals of small-cap companies are also noted as a contributing factor to this expected performance [1].

KATIE: WELCOME TO "BLOOMBERG ETF IQ." I'M KATIE GREIFELD. SCARLET FU IS OFF TODAY. MORE THAN $17 TRILLION ETF INDUSTRY, WE START WITH THE STOCK RALLY JUMPSTARTED BY FED CHAIR JEROME POWELL IN JACKSON HOLE.LOSING A BIT OF STEAM THIS MONDAY AS WE CLOSE OUT THE LAST WEEK OF SUMMER. MEANWHILE, RAPID GROWTH IN ACTIVE ETF'S, EVEN AS -- WE WILL SPEAK ABOUT IT WITH CAP COMING -- AND LIKE MATT CAMUSO OF BNY INVESTMENTS. WE WILL ALSO SPEAK WITH GREG KING, THE CEO OF REX FINANCIAL, ABOUT HIS NEWLY LAUNCHED ETF.ALL THA ...

The deal with Intel gives the Department of Commerce up to 433.3 million shares in the company and makes the U.S. its third-largest shareholder, behind Blackrock and Vanguard, which both own 13% stakes. https://t.co/EuhOjcZ4vL (Photo: Chip Somodevilla via Getty Images) https://t.co/TZUcrsrr48 ...

Core Viewpoint - The First Trust Mid Cap Value AlphaDEX ETF (FNK) is designed to provide broad exposure to the Mid Cap Value segment of the US equity market, with a focus on balancing growth potential and stability [1][2]. Group 1: Fund Overview - Launched on April 19, 2011, FNK has accumulated assets over $204.79 million, categorizing it as one of the smaller ETFs in its segment [1]. - The ETF is passively managed and sponsored by First Trust Advisors [1]. Group 2: Investment Characteristics - Mid cap companies, with market capitalizations between $2 billion and $10 billion, are generally seen as having higher growth prospects compared to large cap companies while being less risky than small cap companies [2]. - Value stocks, which FNK focuses on, typically have lower price-to-earnings and price-to-book ratios, and have historically outperformed growth stocks in long-term performance [3]. Group 3: Costs and Performance - FNK has annual operating expenses of 0.7%, making it one of the more expensive ETFs in its category, with a 12-month trailing dividend yield of 1.62% [4]. - The ETF aims to match the performance of the Nasdaq AlphaDEX Mid Cap Value Index, with a year-to-date return of approximately 5.62% and a one-year return of about 7.56% as of August 25, 2025 [7]. Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Consumer Discretionary sector, comprising about 22.1% of the portfolio, followed by Financials and Industrials [5]. - Riot Platforms, Inc. (RIOT) is the largest individual holding at approximately 1.18% of total assets, with the top 10 holdings accounting for about 9.23% of total assets under management [6]. Group 5: Risk and Alternatives - FNK has a beta of 1.08 and a standard deviation of 21.97% over the trailing three-year period, indicating a medium risk profile [8]. - Alternatives to FNK include the iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE), which have significantly larger asset bases and lower expense ratios [10].

Core Insights - The First Trust Financials AlphaDEX ETF (FXO) is a smart beta ETF launched on 05/08/2007, providing broad exposure to the Financials sector [1] - FXO aims to outperform traditional passive indices by utilizing the AlphaDEX screening methodology to select stocks from the Russell 1000 Index [6] Fund Overview - Managed by First Trust Advisors, FXO has accumulated over $2.25 billion in assets, positioning it among the larger ETFs in the Financials category [5] - The fund's annual operating expenses are 0.61%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 1.87% [7] Sector Exposure and Holdings - FXO has a significant allocation in the Financials sector, comprising approximately 99.7% of its portfolio [8] - The top holdings include Bank Ozk (1.68% of total assets), Invesco Ltd., and Interactive Brokers Group, with the top 10 holdings accounting for about 16.07% of total assets [9] Performance Metrics - Year-to-date, FXO has returned approximately 10.08%, and it has increased by about 21.33% over the last 12 months as of 08/25/2025 [11] - The fund has a beta of 1.02 and a standard deviation of 22.53% over the trailing three-year period, indicating a medium risk profile [11] Alternatives - Other ETFs in the Financials space include Vanguard Financials ETF (VFH) and Financial Select Sector SPDR ETF (XLF), with VFH having $12.88 billion in assets and XLF at $52.3 billion [13] - VFH and XLF have lower expense ratios of 0.09% and 0.08% respectively, making them attractive alternatives for cost-conscious investors [13]

Core Insights - The First Trust Growth Strength ETF (FTGS) is designed to provide broad exposure to the Large Cap Growth segment of the US equity market and has amassed over $1.23 billion in assets since its launch on October 25, 2022 [1] Group 1: Large Cap Growth Overview - Large cap companies typically have a market capitalization above $10 billion, offering a stable investment option with less risk and more reliable cash flows compared to mid and small cap companies [2] - Growth stocks are characterized by higher sales and earnings growth rates, but they also come with higher valuations and risks compared to other equity types [3] Group 2: Costs and Performance - The FTGS ETF has an annual operating expense ratio of 0.6%, which is considered relatively high, and a 12-month trailing dividend yield of 0.33% [4] - The ETF has gained approximately 12.13% year-to-date and 14.89% over the past year, with a trading range between $26.62 and $35.51 in the last 52 weeks [7] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Information Technology sector, comprising about 30.6% of the portfolio, followed by Industrials and Financials [5] - Vertiv Holdings Co (VRT) represents about 2.91% of total assets, with the top 10 holdings accounting for approximately 24.93% of total assets under management [6] Group 4: Risk and Alternatives - FTGS has a beta of 1.13 and a standard deviation of 17.78% over the trailing three-year period, indicating effective diversification of company-specific risk with about 51 holdings [8] - Alternatives to FTGS include the Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), which have significantly larger asset bases and lower expense ratios [10]

Core Viewpoint - The Goldman Sachs MarketBeta Russell 1000 Growth Equity ETF (GGUS) is a newly launched passively managed ETF aimed at providing broad exposure to the Large Cap Growth segment of the US equity market, with assets exceeding $295.45 million [1]. Group 1: Large Cap Growth Characteristics - Large cap companies typically have market capitalizations above $10 billion, characterized by stability and predictable cash flows, resulting in lower volatility compared to mid and small cap companies [2]. - Growth stocks are associated with higher sales and earnings growth rates, expected to outperform the market, but they come with higher valuations and risks [3]. Group 2: Cost Structure - GGUS has an annual operating expense ratio of 0.12%, making it one of the least expensive ETFs in its category, with a 12-month trailing dividend yield of 0.51% [4]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Information Technology sector, comprising approximately 46.8% of the portfolio, followed by Consumer Discretionary and Telecom [5]. - Nvidia Corp (NVDA) is the largest holding at about 11.61% of total assets, with Microsoft Corp (MSFT) and Apple Inc (AAPL) also among the top holdings; the top 10 holdings represent around 50% of total assets [6]. Group 4: Performance Metrics - GGUS aims to match the performance of the Russell 1000 Growth 40 Act Daily Capped Index, with a year-to-date return of approximately 10.95% and a one-year return of about 22.37% as of August 25, 2025 [7]. - The ETF has a beta of 1.16 and a standard deviation of 19.91% over the trailing three-year period, indicating effective diversification with around 380 holdings [8]. Group 5: Alternatives and Market Position - GGUS holds a Zacks ETF Rank of 2 (Buy), indicating strong potential based on expected returns, expense ratio, and momentum, making it a favorable option for investors in the Large Cap Growth segment [10]. - Other comparable ETFs include the Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), with VUG having $184.39 billion in assets and an expense ratio of 0.04%, while QQQ has $369.27 billion in assets with a 0.2% expense ratio [11]. Group 6: Investment Appeal - Passively managed ETFs like GGUS are increasingly popular among retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [12].

Core Insights - The Invesco RAFI Developed Markets ex-U.S. ETF (PXF) is a smart beta ETF that provides broad exposure to the Foreign Large Value ETF category, launched on June 25, 2007 [1] Fund Overview - PXF is managed by Invesco and has accumulated over $2.16 billion in assets, making it one of the larger ETFs in its category [5] - The ETF aims to match the performance of the FTSE RAFI Developed ex-U.S. Index, which tracks large developed market equities based on fundamental measures such as book value, cash flow, sales, and dividends [5] Cost Structure - PXF has an annual operating expense ratio of 0.43%, which is competitive within its peer group [6] - The ETF offers a 12-month trailing dividend yield of 3.01% [6] Holdings and Sector Exposure - PXF's top holdings include Shell Plc (2.11% of total assets), Samsung Electronics Co Ltd, and Totalenergies Se [7] - The top 10 holdings account for approximately 11.29% of the total assets under management [8] Performance Metrics - The ETF has returned approximately 30.26% and is up about 24.57% year-to-date as of August 25, 2025 [9] - PXF has traded between $46.22 and $61.20 over the past 52 weeks [9] Risk Assessment - PXF has a beta of 0.82 and a standard deviation of 15.70% over the trailing three-year period, indicating a medium risk profile [10] - The fund holds about 1,147 securities, providing effective diversification against company-specific risks [10] Alternatives - Other ETFs in the Foreign Large Value segment include Vanguard International High Dividend Yield ETF (VYMI) and Schwab Fundamental International Equity ETF (FNDF), with assets of $12.01 billion and $17.59 billion respectively [12] - VYMI has a lower expense ratio of 0.17%, while FNDF charges 0.25% [12]

Core Insights - The Vanguard Mega Cap Value ETF (MGV) is a passively managed fund launched on December 17, 2007, with assets exceeding $9.86 billion, targeting the Large Cap Value segment of the US equity market [1][10] - Large cap companies, defined as those with market capitalizations above $10 billion, are considered more stable with predictable cash flows and lower volatility compared to mid and small cap companies [2] - Value stocks typically have lower price-to-earnings and price-to-book ratios, but also exhibit lower sales and earnings growth rates; historically, they have outperformed growth stocks in most markets, although they may underperform during strong bull markets [3] Costs - The ETF has an annual operating expense ratio of 0.07%, making it one of the least expensive options in its category, with a 12-month trailing dividend yield of 2.08% [4] Sector Exposure and Top Holdings - The ETF has a significant allocation to the Financials sector, comprising approximately 28% of the portfolio, followed by Healthcare and Industrials [5] - Jpmorgan Chase & Co (JPM) represents about 4.71% of total assets, with the top 10 holdings accounting for around 24.26% of total assets under management [6] Performance and Risk - MGV aims to match the performance of the CRSP U.S. Mega Cap Value Index, which measures the performance of mega-cap value stocks in the US; the ETF has gained about 9.25% year-to-date and 10.98% over the past year as of August 25, 2025 [7] - The ETF has a beta of 0.79 and a standard deviation of 13.53% over the trailing three-year period, indicating a medium risk profile with effective diversification across 126 holdings [8] Alternatives - Other ETFs in the same space include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), with SCHD having $72.51 billion in assets and VTV at $144.09 billion; their expense ratios are 0.06% and 0.04%, respectively [11] Bottom-Line - Passively managed ETFs like MGV are favored by both institutional and retail investors for their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [12]

Group 1 - The "Ten Titans" are the largest growth-focused U.S. companies, comprising approximately 38% of the S&P 500 [2][9] - The combined market capitalization of the Ten Titans is $20.2 trillion, a significant increase from $2.5 trillion a decade ago [6] - The Ten Titans have contributed 51.6% of the S&P 500's market cap growth over the last decade, which totaled $34.3 trillion [8] Group 2 - The Vanguard S&P 500 ETF is highlighted as a low-cost option for investors seeking exposure to the Ten Titans, with an expense ratio of 0.03% [4][5] - The S&P 500 has transformed into a growth-focused index due to the concentration of the Ten Titans, which may not suit all investors [9][12] - Investors with a high risk tolerance may benefit from the concentrated nature of the index, while risk-averse investors might need to adjust their portfolios to avoid overexposure to growth stocks [14]