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I am looking for a small/mid cap equity ETF. The portfolio should be quality and not heavy on financials (banks). Want the portfolio to focus on profitable companies. Expense ratio should be reasonable.
@Mitchelg: I have been looking for such an animal, having owned CALF and COWZ previously. Both of them have done well at times, but COWZ can be all over the lot in market cap. The two I have stuck with through thick and thin are AIRR and PAVE. Both might represent too narrow a segment of the market for you as they are heavily allocated to industrials. PAVE has no financials, AIRR has 10% in small cap banks as part of the index it follows. For MC, XMHQ has a lot going for it.
Invesco has XMHQ and SMHQ. XMHQ was something else until five years ago. I'm not sure how long SMHQ has been operating with a quality mandate. So just fair warning when you look at their track record.
Another fund I have been following is CWS.
I own XMHQ in the IRA and taxable, It's a bit of an E-ticket ride. So far it has bounced back quickly. It has also drifted out of the blend category since I first bought it.
With a rules-based ETfund you're going to get whatever fits the rules, which may include financials.
At this link, click on the Comps tab to see other ETfunds that overlap with XMHQ. That should give you a few more ideas.
You might consider CPAI (Counterpoint Quant Equity ETF, a multi-cap growth fund. Age 0.8 years; 11.96 financials (not heavy); YTD return 33.4% through September beats SP 500 by 5.7%; ER .75.
Comments
As something like 60% of the smallcap index companies are unprofitable, most people think active management is better.
Just ETFs? Why not look at OEFs too?
Another fund I have been following is CWS.
I own XMHQ in the IRA and taxable, It's a bit of an E-ticket ride. So far it has bounced back quickly. It has also drifted out of the blend category since I first bought it.
With a rules-based ETfund you're going to get whatever fits the rules, which may include financials.
At this link, click on the Comps tab to see other ETfunds that overlap with XMHQ. That should give you a few more ideas.
https://distillatecapital.com/u-s-small-mid-cap-quality-value/
American Century's Avantis ETFs fills many spots on PM's list.
How Avantis Became One of the Fastest-Growing Fund Companies
https://morningstar.com/funds/how-avantis-become-one-fastest-growing-fund-companies