RWJ - RWJ: An Answer To Small-Cap Zombie Averages

2024-01-29 01:42:52 ET

Summary

• Invesco S&P SmallCap 600 Revenue ETF focuses on small-cap strategies that weed out zombie companies and have revenue to support higher interest expenses.
• RWJ provides diversified exposure to minimize single stock risk, with top positions including World Kinect, United Natural Foods, Lincoln National, Kohl's, and Group 1 Automotive.
• The Fund has a diversified sector allocation, with the heaviest allocation to the Consumer Discretionary sector, and has outperformed similar ETFs due to its revenue focus.

Small-caps have been a train wreck in this cycle, with many of the large passive indices nowhere near looking like they are in a bull market. Much of this of course has to do with the fact that small-cap indices have a lot of zombie companies that operate on razor-thin margins against high debt. So why not instead focus on small-cap strategies that largely weed those out and have the revenue to support higher interest expenses? That's where the Invesco S&P SmallCap 600 Revenue ETF ( RWJ ) comes into play....

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