{"id":174918,"date":"2024-04-30T14:01:55","date_gmt":"2024-04-30T11:01:56","guid":{"rendered":"https:\/\/kupitiblog.store\/576r\/small-caps-now-at-average-18-discount-to-fair-value-time-to-scoop-up-shares\/"},"modified":"2024-04-30T14:01:55","modified_gmt":"2024-04-30T11:01:56","slug":"small-caps-now-at-average-18-discount-to-fair-value-time-to-scoop-up-shares","status":"publish","type":"post","link":"https:\/\/kupitiblog.store\/576r\/small-caps-now-at-average-18-discount-to-fair-value-time-to-scoop-up-shares\/","title":{"rendered":"Small Caps Now at Average 18% Discount to Fair Value: Time to Scoop Up Shares?"},"content":{"rendered":"<p>The momentum factor is on track to end April\u00a0as it <span class=\"aqPopupWrapper mediumTitle1 js-hover-me-wrapper\">began<\/span>: the strongest year-to-date performer among US equity factors, based on a set of ETFs through Friday\u2019s close (Apr. 26).<\/p>\n<p>In line with the broad market, iShares MSCI USA Momentum Factor ETF (NYSE:<span class=\"aqPopupWrapper js-hover-me-wrapper\">MTUM<\/span>) has taken a hit in recent weeks after touching a record high earlier in the year. In relative terms, however, MTUM\u2019s factor-leading performance in 2024 is intact, courtesy of a 14.6% year-to-date gain.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/kupitiblog.store\/576r\/wp-content\/uploads\/2024\/04\/56d29091d5247c06585aca6328857404.png\"  \/><\/p>\n<p>MTUM\u2019s rally this year is twice the gain for the broad market via <span class=\"aqPopupWrapper js-hover-me-wrapper\">S&amp;P 500<\/span> (NYSE:<span class=\"aqPopupWrapper js-hover-me-wrapper\">SPY<\/span>). MTUM is also comfortably ahead of its nearest would-be factor leaders in 2024: large-cap growth (<span class=\"aqPopupWrapper js-hover-me-wrapper\">IVW<\/span>) and mid-cap growth (<span class=\"aqPopupWrapper js-hover-me-wrapper\">IJK<\/span>), which are tied for second place with 10% returns each so far this year.<\/p>\n<p>Meanwhile, the red-ink brigade for equity factors admitted new members for year-to-date results since our \u00a0Apr. 10 update: small-cap value (<span class=\"aqPopupWrapper js-hover-me-wrapper\">IJJ<\/span>) and small-cap core (<span class=\"aqPopupWrapper js-hover-me-wrapper\">IJR<\/span>). Joining small-cap value (<span class=\"aqPopupWrapper js-hover-me-wrapper\">IJS<\/span>), it\u2019s now a clean sweep of losses in 2024 for the small-stock category.<\/p>\n<p>The weakness in low-capitalization stocks is disappointing for investors in this corner, but for contrarians, the valuations look compelling. Morningstar reports:<\/p>\n<blockquote>\n<p>\u201cSmall-cap stocks trade at an 18% discount to fair value, making them the cheapest US asset class across the Morningstar Style Box,\u201d according to analysis by the firm\u2019s senior US market strategist Dave Sekera.\u00a0\u00a0<\/p>\n<\/blockquote>\n<p><img decoding=\"async\" src=\"https:\/\/kupitiblog.store\/576r\/wp-content\/uploads\/2024\/04\/3d52911b86eb4e1eb44b6cf536e88608.png\"  \/><\/p>\n<p>The question is whether an attractive valuation will soon lead to strong performance. The long-running underperformance of small-cap shares suggests caution (still), but hope springs eternal in this slice of the factor realm.<\/p>\n<p> 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure <u>here<\/u> or <b> remove ads <\/b>.<\/p>\n<p>In an interview published yesterday by TheStreet.com, Ward Sexton, a manager of the William Blair Small-Cap Growth Fund (WBSNX), an actively managed open-end fund, says:<\/p>\n<blockquote>\n<p>\u201cThere are a lot of opportunities to find misunderstood or lesser-known names that will grow to become large-caps.\u201d<\/p>\n<\/blockquote>\n<p>Music to the ears of small-cap investors. So far this year, however, this corner of the market is still singing off-key.<\/p>\n<\/p>\n<p><a target=\"_blank\" rel=\"nofollow noopener\" href=\"http:\/\/www.investing.com\/analysis\/small-caps-now-at-average-18-discount-to-fair-value-time-to-scoop-up-shares-200648005\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The momentum factor is on track to end April\u00a0as it began: the strongest year-to-date performer among US equity factors, based on a set of ETFs through Friday\u2019s close (Apr. 26). In line with the broad market, iShares MSCI USA Momentum Factor ETF (NYSE:MTUM) has taken a hit in recent weeks after touching a record high &hellip;<\/p>\n","protected":false},"author":1,"featured_media":176062,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3337],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Small Caps Now at Average 18% Discount to Fair Value: Time to Scoop Up Shares? - BiznesSMI - \u043a\u043e\u0442\u0438\u0440\u043e\u0432\u043a\u0438 \u0432\u0430\u043b\u044e\u0442, \u0430\u043a\u0446\u0438\u0438, \u0444\u043e\u0440\u0435\u043a\u0441, \u0438\u043d\u0434\u0435\u043a\u0441\u044b, \u0430 \u0442\u0430\u043a\u0436\u0435 \u0442\u0435\u0445\u043d\u0438\u0447\u0435\u0441\u043a\u0438\u0439 \u0430\u043d\u0430\u043b\u0438\u0437, \u0433\u0440\u0430\u0444\u0438\u043a\u0438, \u0444\u0438\u043d\u0430\u043d\u0441\u043e\u0432\u044b\u0435 \u043d\u043e\u0432\u043e\u0441\u0442\u0438 \u0438 \u0430\u043d\u0430\u043b\u0438\u0442\u0438\u043a\u0430.<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"ru_RU\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Small Caps Now at Average 18% Discount to Fair Value: Time to Scoop Up Shares? - BiznesSMI - \u043a\u043e\u0442\u0438\u0440\u043e\u0432\u043a\u0438 \u0432\u0430\u043b\u044e\u0442, \u0430\u043a\u0446\u0438\u0438, \u0444\u043e\u0440\u0435\u043a\u0441, \u0438\u043d\u0434\u0435\u043a\u0441\u044b, \u0430 \u0442\u0430\u043a\u0436\u0435 \u0442\u0435\u0445\u043d\u0438\u0447\u0435\u0441\u043a\u0438\u0439 \u0430\u043d\u0430\u043b\u0438\u0437, \u0433\u0440\u0430\u0444\u0438\u043a\u0438, \u0444\u0438\u043d\u0430\u043d\u0441\u043e\u0432\u044b\u0435 \u043d\u043e\u0432\u043e\u0441\u0442\u0438 \u0438 \u0430\u043d\u0430\u043b\u0438\u0442\u0438\u043a\u0430.\" \/>\n<meta property=\"og:description\" content=\"The momentum factor is on track to end April\u00a0as it began: the strongest year-to-date performer among US equity factors, based on a set of ETFs through Friday\u2019s close (Apr. 26). 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