Investment Q&A

Q: Hello Folks:

Now that Chairman Powell has clearly stated that people should NOT expect aggressive rate cuts, how do you think it will impact Small caps? Will they languish for some more time?

IF, a big IF, Small caps do come alive, do you think one should hold more of Small cap growth or Small cap Value?

Also your word of wisdom about buying Small caps over Mid caps? Wouldn't the latter (Mid caps) benefit more if the interest rates remain the same, more or less? Here the assumption is that the rate cuts will benefit Small caps.

Many thanks in advance!

Q: Hi,

Your faith in resurgence of Small caps seem to be paying off! IWM is on a tear, eh?! However an article in Barron's seem to suggest that it is bit early to dive into Small caps!

Having said that, can you suggest some LOW COST Small cap ETFs both in the US and the rest of the world. If you want to give some for growth and some for value, it will be appreciated.

Many thanks.

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Q: Dear Peter et al:

This is more of big picture and history based question even though I am old enough know that the past performance doesn't mean anything going forward!

Has there been a period when Small cap growth or value stocks outperformed the Large caps growth/value during deflation/stagflation, recession with with a capital R or a lower case r, or even in a nominal sideways market? Do you see such a scenario evolving in 2024/2025? If so what are the ETFs that one could employ to benefit from such a scenario? Lightening up the large caps and switching to small caps for a year or two , is this a good strategy going forward?
I have included some of the ETFs that you are fond of from your Q&A. However feel free to add or delete!

Many thanks.
Mano

Q: Hi team,

I currently have IWO as a core holding. I would like to change to a more concentrated ETF holding either in small or mid cap US. With so many different factors to choose from such as large/medium/small cap, dividend/value/growth/blend, current valuations, etc... and looking at past returns over various time periods, how does one choose the best ETF to invest in going forward now? I would consider all these ETF's to be high quality and obviously no one knows what the range of future returns will be. With small/mid cap underperforming lately vs large cap, would you place your bets on that spread closing over time? I'm comfortable with volatility and have a long term time horizon (+15yrs). How would you rank these going forward for best risk adjusted returns?

Thank you!

Q: Wondering if you still feel like the small-capitalization U.S. stocks are showing value going forward? Even with the YTD 9.59 return?
Wondering if you know of a ETF similar to XSU.CA that's tilted towards GROWTH, can be unhedged.

Thanks

Q: Just wondering if you would offer an opinion on what the likelihood is that both of these ETF’s could be higher a year from now? I guess what I am trying to ask is whether small caps in general might “revert to the mean” in terms of their historic relationship to larger caps regardless of whether growth or value is more in favour/out of favour?

Thanks,

Q: Hi,

Your answers to one of the subscriber's questions regarding Value stocks included embeded inks to research articles. (I think the reader quoted Mr. Swedroe and you responded with differing views from others).
Those embeded links were awesome but my "head hurt" after reading them! Dense, filled with a lot of details. Left me with the impression that it is definitely worth buying Value stocks/ETFs. Small/Medium companies?

BUT there are so many ETFs to consider. An article on Value ETFs is begging to be written by you!

What is your short list of Value ETFs, listed in the US and in Canada?

Thanks in advance.

Q: What is the best etf for US small caps to take advantage of the potential increase this year in that segment?

Q: Hello:
We are hearing a lot of chatter about the switch to Value stocks; away from growth stocks.
What are your favourite Value stocks ETFs in Canada and the US. Both for small caps and large caps.

Q: Dear 5i,
I would like to spice-up my portfolios with small allocations to some small/mid-cap/thematic/sector ETFs. The Active ETF's can be sold on a US or CDN exchange and the holdings can be in any country. Can you suggest as many as you can so I can do some further research. (ie ARK products look interesting to me)

thanks for your suggestions

Q: I am converting an all stock portfolio to the sample ETF Growth portfolio. Which ETFs would you put in the TFSA? Thanks.
Bill