'Stay On The Sidelines With Small Caps For Now,' Says RBC — But UBS Sees Brighter Days Ahead
Portfolio Pulse from Surbhi Jain
RBC Capital advises caution on U.S. small-cap stocks, suggesting a neutral stance due to a lack of fundamental tailwinds and negative earnings revisions. Conversely, UBS is optimistic, predicting strong potential for small-cap outperformance in the near term, citing historical correlations with Treasury yields. Popular ETFs for small-cap exposure include iShares Core S&P Small-Cap ETF (IJR), iShares Russell 2000 ETF (IWM), and Vanguard Small Cap ETF (VB).
June 18, 2024 | 4:44 pm
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NEUTRAL IMPACT
RBC Capital advises caution on small-cap stocks, while UBS predicts potential outperformance. This mixed sentiment could lead to volatility in the iShares Core S&P Small-Cap ETF (IJR).
RBC's cautious stance and UBS's optimistic outlook create mixed signals for IJR, leading to potential short-term volatility.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
RBC Capital's neutral stance and UBS's optimistic outlook on small-cap stocks could result in short-term volatility for the iShares Russell 2000 ETF (IWM).
The conflicting views from RBC and UBS suggest potential short-term volatility for IWM as investors react to mixed signals.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
RBC's cautious approach and UBS's optimistic forecast for small-cap stocks could create short-term volatility for the Vanguard Small Cap ETF (VB).
The mixed sentiment from RBC and UBS is likely to result in short-term volatility for VB as investors weigh the differing outlooks.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80