Core Insights - The Russell 2000 serves as the primary benchmark for small-cap investments, demonstrating strong performance in favorable market conditions [1] - The Vanguard Russell 2000 ETF is highlighted as a cost-effective option for investors, with a low expense ratio of 0.06% and a strategy of holding all stocks in the index [2] - The index comprises approximately 2,000 stocks with market caps ranked between 1,001 and 3,000, including both profitable and unprofitable companies [4] Investment Environment - In bull markets, unprofitable stocks within the Russell 2000 can outperform as investors are more inclined to take risks on speculative companies [5] - Long-term investment cycles benefit from exposure to both high-quality and lower-quality companies, allowing investors to navigate market fluctuations effectively [5][9] Comparison with Other Indexes - The S&P 600 index, which is linked to funds like the iShares Core Small Cap ETF, includes stocks outside the S&P 500 and S&P MidCap 400, but applies a quality screen requiring positive earnings [8] - The S&P 600 is tilted towards larger and higher-quality companies, making it a potentially less risky option compared to the Russell 2000 [8] Conclusion - The Vanguard Russell 2000 ETF is considered the best option for long-term investors due to its comprehensive exposure to the small-cap market and its inclusive nature compared to alternative indexes [9]

Core Viewpoint - Small cap stocks, particularly the Russell 2000 Index, are showing leadership in the current market, which may indicate broader economic confidence and influence the next significant market movement [2][6]. Group 1: Market Performance - The Russell 2000 Index is maintaining its 50-day moving average and is in a bullish phase, contrasting with the S&P 500 and NASDAQ, which are struggling to reclaim their 50-day moving averages [2]. - Momentum in the IWM ETF is declining and has fallen below its own 50-day moving average, despite the price holding steady [3][4]. Group 2: Technical Analysis - A classic technical setup is emerging where weakening momentum could precede price changes, serving as an early warning for potential vulnerabilities in leadership [4][5]. - If the IWM can sustain its bullish price structure and momentum improves, it could support ongoing risk appetite and potentially uplift broader indexes [6][7]. Group 3: Future Implications - The next directional move in the market may hinge on the performance of small caps, with leadership, confirmation, and momentum alignment being critical signals to monitor [6][8].

Group 1 - AMIS stock is currently experiencing a pause, raising questions about its future direction [1] - The AIMS fund is benchmarked to the Russell 2000 Index, focusing on maintaining authentic small-cap exposure while selectively including microcap companies [2] - Acuitas sees a favorable environment for small-cap stocks due to rising earnings expectations, potential lower interest rates, regulatory support, and increased investor interest in innovation from smaller companies [3] Group 2 - The investment strategy emphasizes identifying managers with disciplined processes and long-term investment horizons, aiming for below-average volatility compared to the broader small-cap category [4] - The launch of AIMS occurs amidst growth in actively managed ETFs, particularly in segments where skilled stock selection is believed to provide value beyond passive strategies [5] - AIMS represents Acuitas's expansion into the ETF market, broadening access to its specialized investment approach for a wider range of investors [6]

Core Insights - Investing in small-cap stocks often involves a trade-off between quality and growth potential, with many small-cap indexes containing unprofitable companies [1] Group 1: Small-Cap ETFs - The WisdomTree US Smallcap Quality Dividend Growth Fund (DGRS) is a notable small-cap ETF that emphasizes dividends and quality, with a total asset value of $353.2 million as of its debut in July 2013 [2] - DGRS has shown extended out-performance over the last six years compared to "junk" small-caps, particularly benefiting from dividend-paying smaller companies with quality traits [3][4] - The Russell 2000 Index, a benchmark for U.S. small-cap equity performance, had approximately 28% of its weight in companies with negative earnings over the prior 12 months as of September 30, 2025 [5] Group 2: Investment Strategy and Market Trends - DGRS's focus on profitability provides a strategy for investors to mitigate volatility, which is not commonly found in basic small-cap funds [4] - DGRS also offers value at a time when many small-caps are experiencing high valuations, making it an attractive option for investors [6] - A shift in investor tolerance for money-losing companies could favor quality ETFs like DGRS, especially if traditional small-cap funds struggle [7] - Historically, companies with steady earnings and dividends have lagged behind speculative firms, indicating a reversal of trends seen post-global financial crisis [8]

Core Viewpoint - Small-cap value has historically been a strong investment strategy, but recent trends show that riskier small stocks have outperformed small-cap value indexes over the past three years, with the Russell 2000 Index exceeding its value counterpart by over 800 basis points. However, experts predict a potential resurgence for small-cap value by 2026, which could benefit ETFs like the WisdomTree U.S. SmallCap Dividend Fund (DES) [2][3]. Group 1: Small-Cap Value Performance - The Russell 2000 Index has outperformed its value counterpart by more than 800 basis points over the last three years [2]. - Despite recent underperformance, there is optimism for a small-cap value rebound in 2026 [2]. - DES has generated decent returns over the past three years and is positioned to participate in a potential small-cap value recovery [3][4]. Group 2: DES ETF Characteristics - DES, with a market capitalization of $1.86 billion, is not a typical cap-weighted fund; it follows a dividend-weighted index, indicating quality and value traits [4]. - The focus on high-quality, profitable businesses is emphasized as a long-term investment strategy, with metrics like net margins and return on assets being crucial indicators of portfolio quality [5]. - More than a third of Russell 2000 member firms are estimated to be unprofitable, highlighting the potential advantage of investing in DES, which includes firms with better profitability profiles [5][6]. Group 3: Market Sentiment and Valuations - Many financially weak small-caps have seen their valuations rise this year, reflecting a speculative mentality among investors [6]. - The price/sales ratio of profitless stocks has surged from mid-single digits to nearly 20, indicating that investors are paying higher prices based on future earnings potential rather than current profits [7].

Collaboration and Integration - FTSE Russell 与 Chainlink 合作，通过 DataLink 首次将其全球领先的全球指数发布到链上 [1] - DataLink 利用 Chainlink 的基础设施，使机构能够无缝地在链上分发和商业化其数据 [5] - 通过将 FTSE Russell 基准引入链上，DataLink 加速了机构对数字资产的采用 [5] Index Overview - FTSE Russell 指数在全球范围内被广泛采用，覆盖全球 98% 的可投资市场 [2] - Russell 1000 指数由约 1000 家最大的美国上市公司组成，代表美国股市的大盘股部分，平均市值超过 12000 亿美元 [2] - Russell 2000 指数追踪约 2000 只美国小盘股，通常被认为是美国小盘股表现的领先基准 [2] - Russell 3000 指数包含约 3000 只美国股票，约占美国可投资股票市场的 98%，是美国股市的广泛基准 [3] - FTSE 100 指数追踪在伦敦证券交易所上市的 100 家市值最大的公司，是英国蓝筹股的主要业绩指标 [3] Data and Benchmarks - WMR FX 基准提供全球认可的外汇基准利率，供机构用于货币估值、交易和指数构建 [4] - FTSE DAR 数字资产价格提供独立计算的数字资产价格，来源于经过审查的交易所，以满足机构数据标准 [4] - FTSE 数字资产为数字资产市场提供机构级基准，覆盖约 95% 的合格数字资产，并按季度进行重新平衡 [4] Impact and Application - DataLink 将基础机构用例引入区块链经济，同时使链上应用程序能够更快地启动新资产和市场 [6] - 通过 DataLink，罗素 1000 指数、罗素 2000 指数、罗素 3000 指数、富时 100 指数、WMR FX 基准、富时 DAR 数字资产价格和富时数字资产指数将在 40 多个区块链上可用 [1]

Core Insights - The Vanguard Russell 2000 ETF has underperformed the S&P 500 over the past decade, generating a total return of 148% compared to the S&P 500's 295% [7][8] - The ETF provides broad diversification, with its largest holding accounting for only 0.74% of the portfolio, minimizing the impact of any single stock's performance [6] - Valuation metrics suggest that the Russell 2000 may be undervalued compared to the S&P 500, with a price-to-earnings ratio of 18.3 versus 28.9 for the S&P 500 [9] ETF Performance - The Vanguard Russell 2000 ETF has generated a total return of 148% as of October 21, 2023, meaning a $10,000 investment in October 2015 would be worth $24,760 today [7] - The ETF has an expense ratio of 0.07%, which is low and allows investors to retain more capital over time [8] Sector Exposure - The top sector in the Vanguard Russell 2000 ETF is industrials, which makes up 18.9% of the portfolio, contrasting with the S&P 500's 34.8% allocation to information technology [4] Market Conditions - Small-cap stocks, represented by the Russell 2000, are often seen as a bet on the overall U.S. economy, and potential interest rate cuts by the Federal Reserve could serve as a catalyst for these stocks [10] Investment Strategy - While the Vanguard Russell 2000 ETF may not be the primary investment vehicle, it could be a valuable component of a diversified portfolio, providing exposure to small-cap stocks without overly concentrating assets [13]

Group 1 - Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole conference conveyed a more dovish stance, signaling potential easing of monetary policy, which led to a significant market rally, the largest since April [1] - Powell indicated that changes in risk balance may necessitate adjustments in policy, hinting at a possible rate cut in September, although he did not provide a firm commitment [1] - The immediate market reaction included a sharp decline in Treasury yields, with the two-year yield dropping 10 basis points to 3.69%, and the implied probability of a September rate cut rising from 70% to 80% [1] Group 2 - Some Wall Street strategists view Powell's remarks as a reassurance to the market, but caution that the market may be overreacting [2] - Concerns about the Federal Reserve's independence have resurfaced, particularly due to President Trump's public pressure on Powell to cut rates and his comments regarding Fed Governor Cook [2] - The market's enthusiastic response reflects a mixed sentiment among investors, who are hopeful for liquidity easing but worried about the economic fundamentals supporting long-term market growth [2]