EES: Cheap Value Is This Small-Cap Earnings-Weighted Fund's Main Attraction
Source: SeekingAlpha
2025-02-04 03:29:23 ET
Summary
- EES is comprised of about 900 U.S. small-cap securities with market caps averaging $1.7 billion. Its expense ratio is 0.38% and the ETF has $684 million in assets under management.
- Despite the earnings focus, EES's quality features are no better than market-cap-weighted ETFs like IJR. However, shareholders enjoy a low 12.30x forward P/E.
- EES's sales and earnings growth rates are also competitive with IJR and vastly outweigh IJS, a small-cap value peer. I expect EES to outperform both moving forward.
- However, small-cap growth stocks are higher quality and have strong price momentum and sentiment features right now. IJT is one choice, as is CAFG, my top-ranked small-cap fund for February.
- A performance and fundamental comparison of these five ETFs is included in the analysis below.
Investment Thesis
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EES: Cheap Value Is This Small-Cap Earnings-Weighted Fund's Main Attraction
Pacer US Small Cap Cash Cows Growth Leaders ETF
NASDAQ: CAFG
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