Company Overview - Babcock & Wilcox Enterprises, Inc. is a leader in energy technology and solutions, headquartered in Akron, Ohio [3] - The company specializes in energy and environmental products and services for power and industrial markets worldwide [3] Conference Participation - Babcock & Wilcox is scheduled to participate in the 28th Annual Needham Growth Conference, which will be held virtually from January 8-16, 2026 [1][4] - The conference is one of the largest growth stock investing events in the country, featuring over 375 companies and aiming to provide insights into the emerging growth company ecosystem [4] Investor Engagement - B&W's Chairman and CEO Kenneth Young and CFO Cameron Frymyer will host one-on-one and small group meetings with investors during the conference [2] - Interested parties can request invitations or schedule meetings through their Needham representative [2]

Core Viewpoint - The comparison between Vanguard Russell 1000 Growth ETF (VONG) and iShares Russell 2000 Growth ETF (IWO) highlights their differing focuses on large-cap and small-cap stocks, respectively, which leads to variations in cost, risk, and sector exposure [1][2]. Cost and Size - VONG has an expense ratio of 0.07% and assets under management (AUM) of $44.6 billion, while IWO has a higher expense ratio of 0.24% and AUM of $13.2 billion [3]. - The one-year return for VONG is 14.4%, compared to IWO's 10.6%, and VONG has a dividend yield of 0.5%, slightly lower than IWO's 0.7% [3][4]. Performance and Risk Comparison - Over the past five years, VONG experienced a maximum drawdown of -32.71%, while IWO faced a larger drawdown of -42.01% [5]. - An investment of $1,000 in VONG would have grown to $2,064 over five years, whereas the same investment in IWO would have grown to $1,235 [5]. Sector Exposure - IWO targets over 1,000 small-cap growth stocks, with significant allocations in technology (25%), healthcare (22%), and industrials (21%), reflecting a diversified approach [6]. - VONG is heavily concentrated in large-cap technology, with over 50% of its assets in this sector, including major holdings in Nvidia, Apple, and Microsoft [7]. Historical Performance - Since 2010, VONG has delivered total returns exceeding 1,000%, while IWO's returns are at 408%, with the S&P 500 rising nearly 700% in the same period [8]. - VONG's concentration in a few large-cap stocks, referred to as the "Magnificent Seven," accounts for 59% of its assets, raising concerns about its performance if these stocks underperform [9]. Valuation Metrics - IWO has a price-to-earnings (P/E) ratio of 24, which is significantly lower than VONG's P/E ratio of 39, indicating more reasonable valuations for small-cap stocks [10].

Core Insights - The popularity of dividend stocks has shifted significantly, with a notable increase in assets under management in dividend-focused ETFs, such as the Schwab US Dividend Equity ETF (SCHD) with $70 billion [2] - The Vanguard Dividend Appreciation ETF (VIG), while larger at nearly $100 billion, offers a yield of only 1.6%, which is not substantially higher than the S&P 500 Index's yield, impacting the appeal for income-focused investors [3] - There is a growing concern about the sustainability of high-yield stocks, as reaching for yield can lead to financial and psychological distress during market downturns [4] ETF Performance - SCHD has shown a compounded annual return of nearly 9% over the past five years, resulting in a cumulative return of 47%, but has experienced a decline over the past 12 months, with a current yield of 3.8% just breaking even for shareholders [7] - The current market environment is causing some ETFs with higher yields to face vulnerabilities, although they are performing adequately for now [6] Investor Sentiment - Many investors may have a false sense of security in dividend-focused ETFs, as the market dynamics could lead to potential future turmoil [5] - The question remains on how long investors will tolerate the current performance of dividend stocks, especially in light of recent declines [7]

Group 1 - The Invesco NASDAQ Internet ETF (PNQI) has been operational since 2008 and is recognized as a long-standing thematic ETF in the U.S. growth stock sector, delivering excellent returns over its 17 years of operation [1] - The ETF is part of a broader investment group led by Ian, which includes features such as a Weekend Digest that covers new ideas, updates on current holdings, macro analysis, trade alerts, and direct access to Ian [1] Group 2 - Ian Bezek, a former hedge fund analyst, has extensive experience in Latin American markets, focusing on countries like Mexico, Colombia, and Chile, and specializes in high-quality compounders and growth stocks at reasonable prices in the U.S. and other developed markets [2]