SVAL: Is This Small-Cap Value ETF That's 33% Regional Banks Primed For A Recovery?

Investors in small-cap value stocks had a tough first half of the year, at least relatively speaking. Based on total returns of 437 U.S. Equity ETFs across 12 size and style categories, small-cap value ETFs delivered a median 4.99% from January to June 2023, the second-worst result and 23% lower than the typical large-cap growth ETF. However, none had it worse than the iShares US Small Cap Value Factor ETF (BATS:SVAL). The reason is that this relatively unknown fund heavily invests in the Financials sector, including 33% exposure to Regional Banks, and is unlikely to change gears anytime soon. Some might call it an opportunity, but I consider it trying to time the bottom.

seekingalpha.com     Jul 07, 2023