Small-Cap Companies Can Offer Promise Of High Returns, But How Does One Find Winners Given The Risks Involved? A Look Inside Infracap's SCAP ETF
Portfolio Pulse from Johnny Rice
The InfraCap Small Cap Income ETF (SCAP) focuses on investing in small-cap companies for high yield and total return, using a blend of quantitative and qualitative analysis to outperform passive funds. SCAP's structure offers tax benefits by avoiding capital gains through in-kind redemptions. Despite the inherent risks of small-cap investments, SCAP has outperformed its passive counterparts like the Russell 2000 Index and the iShares Morningstar Small-Cap ETF (ISCB) in 2024. SCAP's portfolio includes significant holdings in iShares Russell 2000 ETF (IWM), MKS Instruments Inc (MKSI), Chord Energy Corp (CHRD), GoDaddy Inc (GDDY), and Herc Holdings Inc (HRI).
April 08, 2024 | 5:00 pm
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NEGATIVE IMPACT
ISCB has underperformed compared to SCAP and the Russell 2000 Index in 2024, with only a 2.09% increase.
ISCB's underperformance relative to SCAP and the broader small-cap market could indicate a less favorable short-term outlook for the ETF.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Chord Energy Corp benefits from its association with SCAP, which has demonstrated strong performance in the small-cap sector.
As a top holding in SCAP, CHRD may experience positive market sentiment due to SCAP's successful investment strategy and performance.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
GoDaddy Inc's position in SCAP's portfolio could attract positive attention due to SCAP's outperformance and strategic investments.
GDDY's inclusion in SCAP, which has outperformed passive benchmarks, may lead to favorable investor sentiment in the short term.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Herc Holdings Inc, being part of SCAP's portfolio, stands to benefit from SCAP's positive performance and active investment approach.
HRI's role as a significant holding in SCAP, which has demonstrated strong performance, suggests a positive short-term impact on investor sentiment.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
IWM, as a significant holding of SCAP, indirectly benefits from SCAP's performance and strategic investment approach.
IWM's position as a top holding in SCAP could see indirect benefits from SCAP's active management and performance, suggesting a positive short-term impact.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
MKS Instruments Inc, as a top holding in SCAP, may see positive sentiment due to SCAP's strong performance and investment strategy.
MKSI's inclusion as a significant holding in SCAP, which has outperformed its benchmarks, could lead to positive investor sentiment in the short term.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
SCAP's active investing approach and tax-efficient structure have led to outperformance against passive small-cap benchmarks in 2024.
SCAP's active management strategy and tax advantages have contributed to its superior performance compared to passive alternatives, indicating a positive short-term outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100