Current price – $64.7
Growth potential – 10-15%🔥
Dividend yield – 0.91%💵
Investment horizon – 1 year
iShares U.S. Small-Cap Equity Factor ETF (SMLF) – an exchange-traded fund (ETF) from BlackRock that tracks the STOXX U.S. Small-Cap Equity Factor Index. One of the largest funds that focuses on small-cap companies. The fund's assets under management amount to $1.9 billion. The expense ratio is minimal at 0.15%. This fund is a convenient tool for those looking to invest in small-cap companies. The potential return over a 1-year horizon could be 10-15%.
Investment thesis
🔼Optimistic U.S. economic outlook. The American economy is slowing down amid the Fed's tight monetary policy, but this slowdown seems to be following a "soft landing" scenario. U.S. GDP growth in Q1 2024 was slightly higher than expected (1.4%), and in Q2 2024, it may accelerate to 1.9%. Leading international institutions such as the IMF or the World Bank have recently revised their U.S. economic growth forecasts for 2024 upward. The overall state of the economy most significantly impacts small-cap companies. Additionally, these companies will benefit from the expected easing of the Fed's monetary policy in September.
🔼Betting on Trump's victory. Increased chances of a Republican candidate D. Trump's victory, following an unsuccessful assassination attempt, have positively impacted small-cap companies, as evidenced by the outperforming growth of the Russell 2000 index. Trump has promised tax cuts, which are advantageous for small businesses. It is important to keep in mind that American politics is highly competitive, and the election outcome can be unpredictable.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank” OJSC is regulated by the Central Bank of Armenia.
#investidea
Growth potential – 10-15%🔥
Dividend yield – 0.91%💵
Investment horizon – 1 year
iShares U.S. Small-Cap Equity Factor ETF (SMLF) – an exchange-traded fund (ETF) from BlackRock that tracks the STOXX U.S. Small-Cap Equity Factor Index. One of the largest funds that focuses on small-cap companies. The fund's assets under management amount to $1.9 billion. The expense ratio is minimal at 0.15%. This fund is a convenient tool for those looking to invest in small-cap companies. The potential return over a 1-year horizon could be 10-15%.
Investment thesis
🔼Optimistic U.S. economic outlook. The American economy is slowing down amid the Fed's tight monetary policy, but this slowdown seems to be following a "soft landing" scenario. U.S. GDP growth in Q1 2024 was slightly higher than expected (1.4%), and in Q2 2024, it may accelerate to 1.9%. Leading international institutions such as the IMF or the World Bank have recently revised their U.S. economic growth forecasts for 2024 upward. The overall state of the economy most significantly impacts small-cap companies. Additionally, these companies will benefit from the expected easing of the Fed's monetary policy in September.
🔼Betting on Trump's victory. Increased chances of a Republican candidate D. Trump's victory, following an unsuccessful assassination attempt, have positively impacted small-cap companies, as evidenced by the outperforming growth of the Russell 2000 index. Trump has promised tax cuts, which are advantageous for small businesses. It is important to keep in mind that American politics is highly competitive, and the election outcome can be unpredictable.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank” OJSC is regulated by the Central Bank of Armenia.
#investidea
