Core Viewpoint - ASML Holding N.V.'s stock price declined following its second-quarter earnings presentation, indicating market concerns regarding the company's production capabilities for advanced technology [1]. Financial Performance - The earnings presentation revealed potential challenges in producing certain advanced equipment, which may impact future revenue growth [1]. Market Reaction - The negative reaction in the stock price suggests investor apprehension about ASML's ability to meet market demands and maintain its competitive edge in the high-tech sector [1].

Core Insights - The Fidelity Value Factor ETF (FVAL) is a passively managed ETF launched on September 12, 2016, with assets exceeding $976.98 million, targeting the Large Cap Value segment of the US equity market [1] Group 1: Large Cap Value Overview - Large cap companies are defined as those with a market capitalization above $10 billion, offering more stability and predictable cash flows compared to mid and small cap companies [2] - Value stocks are characterized by lower price-to-earnings and price-to-book ratios, but they also exhibit lower sales and earnings growth rates. Historically, value stocks have outperformed growth stocks in long-term performance, although growth stocks tend to perform better in strong bull markets [3] Group 2: Costs and Performance - The annual operating expenses for FVAL are 0.16%, making it one of the cheaper ETFs in its category, with a 12-month trailing dividend yield of 1.55% [4] - FVAL aims to match the performance of the Fidelity U.S. Value Factor Index, which includes large and mid-cap U.S. companies with attractive valuations. As of July 16, 2025, FVAL has gained approximately 5.16% year-to-date and 10.10% over the past year, trading between $52.80 and $65 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 31.50% of the portfolio, followed by Financials and Consumer Discretionary [5] - Microsoft Corp (MSFT) represents approximately 7.22% of total assets, with Nvidia Corp (NVDA) and Apple Inc (AAPL) also among the top holdings. The top 10 holdings account for about 38.51% of total assets under management [6] Group 4: Risk and Alternatives - FVAL has a beta of 0.96 and a standard deviation of 16.59% over the trailing three-year period, indicating effective diversification of company-specific risk with around 130 holdings [8] - Alternatives to FVAL include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), which have significantly larger asset bases of $70.24 billion and $138.31 billion, respectively, with lower expense ratios of 0.06% and 0.04% [11]

Core Viewpoint - The iShares Top 20 U.S. Stocks ETF (TOPT) offers broad exposure to the Large Cap Growth segment of the US equity market, with assets exceeding $242.27 million and launched on 10/23/2024 [1] Group 1: Large Cap Growth Overview - Large cap companies have a market capitalization above $10 billion, providing more stability and predictable cash flows compared to mid and small cap companies [2] - Growth stocks typically exhibit higher sales and earnings growth rates but come with higher valuations and associated risks [3] Group 2: Cost Structure - The annual operating expenses for TOPT are 0.20%, positioning it as one of the cheaper options in the ETF space, with a 12-month trailing dividend yield of 0.27% [4] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Information Technology sector, comprising about 49.30% of the portfolio, followed by Financials and Telecom [5] - Microsoft Corp (MSFT) represents approximately 14.72% of total assets, with the top 10 holdings accounting for about 74.37% of total assets under management [6] Group 4: Performance Metrics - TOPT aims to match the performance of the S&P 500 TOP 20 SELECT INDEX, having gained roughly 6.39% so far, with a trading range between $21.25 and $27.67 over the past 52 weeks [7] Group 5: Alternatives and Market Position - TOPT holds a Zacks ETF Rank of 2 (Buy), indicating strong potential based on expected returns, expense ratio, and momentum [8] - Other ETFs in the Large Cap Growth space include Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), with VUG having $178.19 billion in assets and an expense ratio of 0.04%, while QQQ has $355.77 billion and charges 0.20% [9] Group 6: Investment Appeal - Passively managed ETFs like TOPT are favored by both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency [10]

Core Viewpoint - The Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD) provides broad exposure to the Small Cap Growth segment of the US equity market, with a focus on small and medium-sized companies that are expected to grow rapidly [1][7]. Group 1: Fund Overview - JSMD is a passively managed ETF launched on February 23, 2016, and has accumulated assets exceeding $537.74 million, positioning it as an average-sized ETF in its category [1]. - The ETF has annual operating expenses of 0.30% and a 12-month trailing dividend yield of 0.82%, making it competitive with peer products [4]. Group 2: Investment Strategy and Performance - The ETF aims to match the performance of the Janus Small/Mid Cap Growth Alpha Index, which selects stocks based on growth, profitability, and capital efficiency [7]. - As of July 14, 2025, JSMD has returned approximately 4.24% year-to-date and 14.95% over the past year, with a trading range between $62.52 and $82.80 in the last 52 weeks [8]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising about 20.60% of the portfolio, followed by Information Technology and Industrials [5]. - The top 10 holdings account for approximately 20.53% of total assets, with Equitable Holdings Inc. (EQH) making up about 2.37% of total assets [6]. Group 4: Alternatives and Market Position - JSMD carries a Zacks ETF Rank of 3 (Hold), indicating it is a viable option for investors seeking exposure to the Small Cap Growth area [10]. - Other comparable ETFs include the iShares Russell 2000 Growth ETF (IWO) with $11.76 billion in assets and the Vanguard Small-Cap Growth ETF (VBK) with $19.20 billion, both of which have lower expense ratios [11].

Core Viewpoint - The First Trust Value Line Dividend ETF (FVD) offers broad exposure to the Large Cap Value segment of the US equity market, with significant assets under management and a focus on dividend-paying companies [1][7]. Group 1: Fund Overview - FVD is a passively managed ETF launched on August 19, 2003, and is sponsored by First Trust Advisors, with assets exceeding $9.08 billion [1]. - The ETF targets large cap companies, defined as those with market capitalizations above $10 billion, which are generally considered stable investments [2]. Group 2: Performance Metrics - FVD aims to match the performance of the Value Line Dividend Index, which includes U.S. securities that pay above-average dividends and have potential for capital appreciation [7]. - The ETF has recorded a year-to-date increase of approximately 4.71% and a one-year increase of about 11.62% as of July 14, 2025 [7]. - Over the past 52 weeks, FVD has traded between $40.62 and $46.70 [7]. Group 3: Cost Structure - The annual operating expenses for FVD are 0.61%, making it one of the more expensive ETFs in its category, with a 12-month trailing dividend yield of 2.26% [4]. Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Industrials sector, comprising about 21.70% of the portfolio, followed by Utilities and Consumer Staples [5]. - Texas Instruments Incorporated (TXN) represents about 0.49% of total assets, with the top 10 holdings accounting for approximately 4.8% of total assets under management [6]. Group 5: Risk Profile - FVD has a beta of 0.72 and a standard deviation of 13.07% over the trailing three-year period, categorizing it as a medium-risk investment [8]. - The ETF consists of about 226 holdings, which helps to diversify company-specific risk [8]. Group 6: Alternatives - Alternatives to FVD include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), which have significantly larger assets under management and lower expense ratios of 0.06% and 0.04%, respectively [10].

Core Viewpoint - The Invesco S&P 500 Pure Growth ETF (RPG) is a passively managed fund aimed at providing broad exposure to the Large Cap Growth segment of the US equity market, with assets exceeding $1.69 billion [1]. Group 1: Fund Overview - RPG was launched on March 1, 2006, and is sponsored by Invesco [1]. - The fund targets large cap companies, which typically have market capitalizations above $10 billion, indicating stability and predictable cash flows [2]. Group 2: Growth Stocks Characteristics - Growth stocks, which RPG focuses on, exhibit higher than average sales and earnings growth rates, but also come with higher valuations and associated risks [3]. - In a strong bull market, growth stocks are considered safer compared to value stocks, but they tend to underperform in other financial environments [3]. Group 3: Costs and Performance - RPG has an annual operating expense ratio of 0.35% and a 12-month trailing dividend yield of 0.29%, aligning it with most peer products [4]. - The ETF has gained approximately 11.66% year-to-date and about 21.75% over the past year, with a trading range between $33.68 and $46.39 in the last 52 weeks [7]. Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Industrials sector, comprising about 24.60% of the portfolio, followed by Consumer Discretionary and Information Technology [5]. - Palantir Technologies Inc (PLTR) represents about 2.57% of total assets, with the top 10 holdings accounting for approximately 21.07% of total assets under management [6]. Group 5: Risk Assessment - RPG has a beta of 1.14 and a standard deviation of 22.37% over the trailing three-year period, categorizing it as a medium risk option [8]. - The ETF consists of around 91 holdings, which helps in diversifying company-specific risk [8]. Group 6: Alternatives - RPG holds a Zacks ETF Rank of 3 (Hold), indicating it is a reasonable option for investors seeking exposure to the Large Cap Growth area [9]. - Alternatives include the Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), with VUG having $176.77 billion in assets and an expense ratio of 0.04%, while QQQ has $354.33 billion and charges 0.20% [10]. Group 7: Bottom-Line - Passively managed ETFs like RPG are favored by both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency [11].

Core Viewpoint - A significant shift is anticipated in the stock market, suggesting a potential transition from growth stocks to value stocks as the latter are currently undervalued and may outperform in the near future [4][7][8]. Group 1: Market Trends - Growth stocks have consistently outperformed value stocks since the late 1990s, driven by technological advancements and low interest rates [4][6]. - Morningstar's Q3 2025 Stock Market Outlook indicates that value stocks are undervalued relative to the broader market, presenting a potential investment opportunity [7]. - U.S. value stocks are currently trading at a price-to-earnings ratio of 10, significantly lower than the 30 for growth stocks, indicating a potential for higher returns [8]. Group 2: Performance of Key Stocks - The "Magnificent Seven" stocks, which have driven market gains, are now lagging behind the broader market, suggesting a possible shift in market leadership [8][11]. - Major growth stocks like Apple, Alphabet, and Tesla have seen declines year-to-date, while the S&P 500 has increased by 6%, indicating a potential trend reversal [11]. Group 3: Economic Factors - Concerns about economic slowdown and market crashes are rising among U.S. consumers, with 46% expressing serious concerns, which could disproportionately affect overvalued growth stocks [13][14]. - The Federal Reserve's sustained high interest rates are impacting growth companies more than value companies, which are better suited to navigate such conditions [15]. Group 4: Investment Strategy - The Vanguard Value ETF offers a trailing dividend yield of just under 2.2%, providing a reliable income stream for investors amid less exciting growth potential [17]. - Investors are encouraged to consider a balanced portfolio that includes both value and selective growth investments, allowing for defensive positioning while still pursuing growth opportunities [18][19].

Market Sentiment & Valuation - The market is assessing whether the recent pause is a temporary consolidation or a midsummer stall, similar to the previous year [1] - Some stocks have already priced in positive scenarios like tariff resolutions, interest rate cuts, and AI-driven economic growth, making them vulnerable during earnings season if results are not perfect [3] - Many relatively valued or inexpensive stocks, particularly in cyclical sectors, are pricing in a more bearish outlook and could potentially rally [4] - Overcrowding in momentum stocks requires continuous positive data to sustain their upward trajectory; otherwise, they are susceptible to a self-reinforcing downward cycle due to market leverage [10] - A shift from growth to value and from large-cap to small-cap stocks indicates the market is rebalancing to avoid excessive imbalances [8] Interest Rates & Economic Outlook - Speculation surrounds the Federal Reserve's actions and the necessity of rate cuts, influenced by global announcements such as Canada's interest rate adjustments [5] - Concerns exist that if interest rate relief does not materialize, a correction could occur across all cyclical stocks, regardless of their valuation [6] - The market anticipates Canada's interest rate to be 15%-25% higher [5][6] - The most probable cyclical outlook is one of steady performance, leading to a divergence in performance between expensive and reasonably priced cyclical stocks [7] Cyclical Stocks & Sector Performance - Certain industrial areas, especially within transports, exhibit trough multiples on earnings that have remained relatively stable, but are not at peak levels, anticipating a significant recovery [6] - A major cyclical rebound is unlikely due to the potential for the 10-year Treasury yield to rise, creating a counteracting force that prevents the cycle from becoming too strong [7]

Core Insights - The individual has a decade of experience in a Big 4 audit firm, focusing on banking, mining, and energy sectors, which provides a strong foundation in finance and strategy [1] - Currently serves as the Head of Finance for a leading retail real estate owner and operator, overseeing complex financial operations and strategy [1] - Active investor in the U.S. stock market for 13 years, with a portfolio that reflects a balanced approach, emphasizing value stocks while maintaining exposure to growth opportunities [1] - Investment philosophy is based on thorough research and a long-term perspective, aiding in navigating various market cycles successfully [1] - Aims to uncover promising under-the-radar stocks that may not yet be recognized by the broader market [1] - Background in auditing and finance, combined with hands-on investing experience, allows for unique insights and actionable ideas for investors [1]

Core Insights - The iShares S&P Small-Cap 600 Value ETF (IJS) is a passively managed ETF launched on July 24, 2000, with assets exceeding $6.39 billion, making it a significant player in the Small Cap Value segment of the US equity market [1] Investment Potential - Small cap companies, defined as those with market capitalizations below $2 billion, present high potential but also come with elevated risks [2] - Value stocks typically exhibit lower price-to-earnings and price-to-book ratios, along with lower sales and earnings growth rates, but have historically outperformed growth stocks in most markets, although they may lag in strong bull markets [3] Cost Structure - The annual operating expenses for IJS are 0.18%, positioning it as one of the more cost-effective options in the ETF space, with a 12-month trailing dividend yield of 1.80% [4] Sector Allocation and Holdings - The ETF has a significant allocation to the Financials sector, comprising approximately 22.20% of the portfolio, followed by Industrials and Consumer Discretionary [5] - Mr Cooper Group Inc (COOP) represents about 1.46% of total assets, with the top 10 holdings accounting for roughly 3.81% of total assets under management [6] Performance Metrics - IJS aims to replicate the performance of the S&P SmallCap 600 Value Index, having experienced a year-to-date loss of approximately -2.64% and a one-year gain of about 10.11% as of July 11, 2025, with a trading range between $83.54 and $118.05 over the past 52 weeks [7] - The ETF has a beta of 1.06 and a standard deviation of 22.49% over the trailing three-year period, indicating a medium risk profile with effective diversification across 471 holdings [8] Alternatives - IJS holds a Zacks ETF Rank of 2 (Buy), indicating strong potential based on expected returns, expense ratios, and momentum, making it a favorable option for investors interested in the Small Cap Value segment [9] - Other comparable ETFs include the iShares Russell 2000 Value ETF (IWN) with $11.56 billion in assets and an expense ratio of 0.24%, and the Vanguard Small-Cap Value ETF (VBR) with $30.66 billion in assets and a lower expense ratio of 0.07% [10] Conclusion - Passively managed ETFs like IJS are gaining popularity among retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11]