2024-02-15 01:49:34 ET
Summary
- The S&P 500 trades above 20 times forward operating earnings estimates for the first time in two years.
- The Vanguard Extended Market Index Fund ETF Shares offers a better deal for long-term investors seeking value in US small- and mid-cap stocks.
- VXF is a large ETF with a diversified portfolio, high exposure to US SMID caps, and a solid price-to-earnings ratio below 17.
- I note key price levels to watch ahead of what can be a volatile period on the calendar.
FactSet reported last week that the S&P 500 trades above 20 times forward operating earnings estimates for the first time in two years. After a demoralizing bear market in 2022 and a sharp rebound last year, it has been a wild ride. Bears suggest that the price being paid for US large caps is high. I assert that they can look to domestic SMID caps for a better deal. ...
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VXF: U.S. SMID Caps Creeping Up Toward 2-Year Highs, The ETF Remains A Bargain