Summary
- RWJ has been on a tear this year demonstrating that fundamentally weighted portfolios with large exposure to underappreciated names are capable of delivering solid returns.
- RWJ mirrors the S&P SmallCap 600 Revenue Weighted index, a modified version of the S&P SmallCap 600.
- The Quant analysis shows that RWJ’s current equity mix has a pronounced value tilt. Over 70% of its NAV is allocated to stocks that have Value Grades above B-.
- The smart-beta RWJ should do well if the capital rotation continues, while its potential in the market similar to the one we saw in the 2010s is limited.
Continue reading at Seeking Alpha right here: https://seekingalpha.com/article/4435005-a-closer-look-at-rwj-etf