It seems USMV overweights a select few mid-cap companies and along with different sectors, but as a whole the fund actually has
a larger average market cap than SPLV:
(All else equal, PKW should have
the largest average market cap due to its market - cap weighting.)
Not exact matches
Therefore it's
average market cap is
large -
cap, which is why it performs similarly to and S&P 500 index fund.
If you take a look at the global corporate history, you will see that the
large cap stocks, also known as Blue Chip stocks are by and far the most consistently high performers in the
market, even when you
average them across decades of performance data.
The argument for these strategies is that weighting by
market cap is not the smartest investment solution out there: the top quintile of the S&P 500 by
market cap underperforms the
average stock by -0.65 % annualized1, and
market cap weighting allocates 65 % of the benchmark to those
largest names.
The following charts show the quintile spreads two ratios within a universe of
Large U.S. Stocks, stocks with a
market cap greater than
average, from 1964 - 2015 [1].
The CEF universe is a strange and wonderful place, and part of the fund's wretched performance so far (it's lost more than twice as much since launch than the
average large cap fund) might be attributed to a stretch of irrational pricing in the CEF
market.
An article in InvestmentNews discusses how «
average investors» in some of the top ten
large -
cap mutual funds failed to beat the
market over a recent five - year period due to
market timing:
BANK OF MONTREAL $ 77 (Toronto symbol BMO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 642.5 million;
Market cap: $ 49.5 billion; Price - to - sales ratio: 2.9; Dividend yield: 4.3 %; TSINetwork Rating: Above
Average; www.bmo.com) is Canada's fourth -
largest bank, with $ 672.4 billion of assets.
Many
market participants (including investors, product providers, and analysts alike) assume that, just as value stocks on
average outperform growth, small -
cap stocks on
average outperform
large -
caps.
BCE INC. $ 56 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 840.3 million;
Market cap: $ 47.1 billion; Price - to - sales ratio: 2.2; Dividend yield: 4.6 %; TSINetwork Rating: Above
Average; www.bce.ca) is Canada's
largest telephone provider, with 5.0 million customers in Ontario and Quebec... Read More
WELLS FARGO & CO. $ 53 (New York symbol WFC; Income Portfolio, Finance sector; Shares outstanding: 4.9 billion;
Market cap: $ 259.7 billion; Price - to - sales ratio: 3.0; Dividend yield: 2.9 %; TSINetwork Rating:
Average; www.wellsfargo.com) is the third -
largest U.S. bank by assets ($ 1.92 trillion as of March 31, 2018), after J.P....
AMERICAN EXPRESS CO. $ 91 (New York symbol AXP, Conservative Growth Portfolio, Finance sector; Shares outstanding: 860.1 million;
Market cap: $ 78.3 billion; Price - to - sales ratio: 2.6; Dividend yield: 1.5 %; TSINetwork Rating:
Average; www.americanexpress.com) is one of the world's
largest issuers of payment cards.
SAPUTO INC. $ 43 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 386.2 million;
Market cap: $ 16.6 billion; Price - to - sales ratio: 1.4; Dividend yield: 1.5 %; TSINetwork Rating:
Average; www.saputo.com) is Canada's
largest producer of dairy products, including milk, butter and cheese.
Recent industry research by Ken Squire, manager of the 13D Activist mutual fund (DDDAX), finds an
average outperformance of 16 % over the subsequent 15 months for companies
larger than $ 1 billion in
market cap:
Well, she's never let me down, about 40 % of her
market cap consists of cash, I currently have a 265 % gain on my
average entry price, I see 30 % upside from the current price (with a secondary price target that offers 68 % upside), and it's my
largest portfolio position at 7.6 %!
The bluest of blue chips in the major developed
markets are the obvious & only real target for them — familiar
large cap stocks which offer predictable (& increasing) dividends, and / or predictable (& higher than
average) growth.
While individual results vary, on
average,
large -
cap active funds have actually outperformed during the last three bear
markets.
The fund had top equivalent positions in the iShares Morningstar
Large -
Cap Growth ETF (JKE;
average weight of 47.8 %), Vanguard Consumer Discretionary ETF (VCR; 11.3 %), iShares Morningstar Mid-
Cap Growth ETF (JKH; 9.8 %), Vanguard Financials ETF (VFH; 9.1 %), PowerShares Dynamic
Market Portfolio (PWC; 6.3 %), and SPDR ® Morgan Stanley Technology ETF (MTK; 5.6 %).
The
average market cap of $ 42 billion still means the ETF's holdings largely fall in the
large -
cap territory, but it does own a few mid-
cap stocks, including People's United Financial (PBCT; $ 6.3 billion
market cap), a Northeast regional bank, and Navient (NAVI; $ 3.5 billion), a student loan servicer and collector.
Our research showed that, on
average, actively managed
large -
cap stock funds lost less during recent bear
markets than
large -
cap index funds.
During the last three
market downturns, the
average active
large -
cap blend fund outperformed its prospectus benchmark from 0.83 % during the 2007 - 09 downturn to more than 5 % during the 2000 - 01 correction.
«We think this gives investors a better indication of how
large -
cap active funds have actually performed, on
average, during bear
markets,» said Nielson.
While
large cap funds have an
average market cap of above Rs. 10000 crore, mid
caps have an
average market caps between Rs. 5,000 and Rs. 10,000 crore.
More than 85 % of the Schwab
market cap index ETFs have expenses lower than 0.10 %, with an asset - weighted
average expense ratio of just 0.05 %.1 As one of the
largest and fastest growing ETF families, we are able to offer the broad
market access and diverse options that clients seek — with some of the lowest expenses in the industry.
[If you recall, I'd previously noted i) a marked sector correlation between
market cap & price / book (P / B), and ii) a specific
market cap which signaled a distinct step - up in terms of valuation: 100 mio +
market caps clustered» round an
average 1.02 P / B, a
large premium to the avg.
Even if we exclude my
largest (FIG: US) & smallest (ZMNO: ID) holdings — we still have an
average market cap of EUR 93 M (or USD 125 M).
Technicals & Sentiment: Record employees own a majority, Schroders is the only institution (at 16 %), and presumably there's a fair contingent of dividend investors & grim long - term shareholders, so the available free float's surprisingly small for a near - # 100 million
market cap — please note the
average 100 K daily share volume may limit
larger trades / investors, while the price can be volatile (a daily 5 - 10 % move isn't that unusual).
The fund had top equivalent positions in the iShares Morningstar
Large -
Cap Growth ETF (JKE;
average weight of 28.1 %), iShares Core S&P Total U.S. Stock
Market ETF (ITOT; 16.4 %); Vanguard Consumer Discretionary ETF (VCR; 12.1 %), iShares S&P Mid-
Cap 400 Growth ETF (IJK; 11.5 %), Vanguard Health Care ETF (VHT; 8.9 %), and Vanguard Energy ETF (VDE; 5.7 %).
Overall, companies with
larger market caps did not tend to have future DGRs that were markedly lower than their past DGRs; in fact, the
average difference was in the numerically opposite direction.
The
average target - date fund (TDF) enjoyed nearly a 4 % return for the second quarter of 2014, buoyed by U.S.
large cap, emerging
market and real estate equity holdings.
LOBLAW COMPANIES LTD. $ 56 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 413.5 million;
Market cap: $ 23.2 billion; Price - to - sales ratio: 0.5; Dividend yield: 1.8 %; TSINetwork Rating: Above
Average; www.loblaw.ca) is Canada's
largest food retailer, with about 1,200 stores.
LOBLAW COMPANIES $ 66.80 (Toronto symbol L; Shares outstanding: 412.4 million;
Market cap: $ 27.6 billion; TSINetwork Rating: Above
Average; Dividend yield: 1.5 %; www.loblaw.ca) is Canada's
largest food retailer, with about 1,200 supermarkets.
LOBLAW COMPANIES $ 61.92 (Toronto symbol L; Shares outstanding: 412.5 million;
Market cap: $ 25.6 billion; TSINetwork Rating: Above
Average; Dividend yield: 1.6 %; www.loblaw.ca) is Canada's
largest food retailer, with about 1,200 stores.
GREAT - WEST LIFECO $ 34.40 (Toronto symbol GWO; shares outstanding: 990.0 million;
Market cap: $ 34.1 billion; TSINetwork Rating: Above
Average; Dividend yield: 4.3 %; www.greatwestlifeco.com) is Canada's second -
largest insurance company, after Manulife Financial (Toronto symbol MFC).
GREAT - WEST LIFECO INC. $ 32 (Toronto symbol GWO; Conservative Growth Portfolio, Finance sector; Shares outstanding: 892.5 million;
Market cap: $ 28.6 billion; SI Rating: Above
average) is Canada's
largest insurance company, with over $ 400 billion in assets under administration.
LOBLAW COMPANIES LTD. $ 48 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 412.7 million;
Market cap: $ 19.8 billion; Price - to - sales ratio: 0.4; Dividend yield: 2.0 %; TSINetwork Rating: Above
Average; www.loblaw.ca) is Canada's
largest food retailer, with roughly 1,200 stores.
GREAT - WEST LIFECO INC. $ 35 (Toronto symbol GWO; Conservative Growth Portfolio, Finance sector; Shares outstanding: 892.1 million;
Market cap: $ 31.2 billion; SI Rating: Above
average) is Canada's
largest insurance company with $ 216.2 billion in assets under administration.
The sector
average is EUR 959 per sqm, while a EUR 900 per sqm
market cap weighted
average reflects the purchase discounts & economies of scale
larger companies can achieve.
The sector's up an
average 371 % YTD, but with the highest gains mostly accruing to the
larger (& generally Bitcoin - focused) companies, the
market cap weighted gain is 590 % YTD.
In the analysis period, the fund held equivalent equity positions in JKE (iShares Morningstar
Large -
Cap Growth ETF;
average weight of 21.8 %), QQQ (PowerShares QQQ ™ ETF; 17.5 %), JKH (iShares Morningstar Mid-
Cap Growth ETF; 14.4 %), PWC (PowerShares Dynamic
Market Portfolio ETF; 9.2 %), EEM (iShares MSCI Emerging
Markets ETF; 7.2 %), and VDC (Vanguard Consumer Staples ETF; 6.7 %).
The fourth
largest market cap held by bitcoin cash (BCH) is up 4.4 percent, and each BCH is
averaging roughly $ 1,729.
In contrast to the
large cap commercial
market transactions reported by RCA, most REALTORS ® who specialize in commercial real estate managed investment deals
averaging less than $ 2.5 million per deal, frequently located in secondary and tertiary
markets.
Long - term performance comparisons bear out those definitions: small -
cap value stocks have dramatically outperformed
large -
cap growth stocks since mid-1926 with total returns
averaging 14.82 percent per year vs 9.72 percent per year, according to data maintained by economist Kenneth French of the famous Fama - French stock
market research team.