VTWV - The VTWG ETF Seems To Be Ready For The Small-Cap Rally
2024-02-08 06:35:30 ET
Summary
- The significant presence of the technological component is the strength of the VTWG ETF.
- The VTWG ETF shows attractive multiples (P/E) compared to its history and compared to other RUSSELL indices, showing some discount in the price of the ETF.
- The consensus analysis on earnings for the fourth quarter of 2023 promotes good growth prospects for the following years, especially for the technological component.
- However, the Fed's monetary policy choices have an excessive impact on the performance of the index, which makes any type of financial forecast very precarious.
Russell 2000 Growth Stocks May Outperform the S&P 500
In the Growth sector of the Russell 2000, there is a significant composition of information technology-related stocks. This sector has benefited from favorable technical momentum throughout 2023 despite the historical momentum, maintaining satisfactory fundamental values. This follows current consensus indications, which could be confirmed by the upcoming fourth quarter earnings season. The same cannot be said for the other companies in the Russell 2000 index, and an excellent historical recap of what happened in 2023 can be found here ....
The VTWG ETF Seems To Be Ready For The Small-Cap Rally