New Trade for October 29th, 2020

Futures are mixed this morning, but relatively flat.  The Dow and the S&P are both slightly down while the Nasdaq tries to recover some of yesterday’s 3.7% loss.  

Facebook, Twitter and Alphabet report earnings this afternoon, after their CEO’s testified before the Senate on issues of competition, consumer privacy and hate speech. Share prices tumbled for all three companies as the hearing progressed.  TWTR tumbled 5%, FB and GOOGL fell 5.5%.  Will earnings numbers be impressive enough to counteract some of yesterday’s negativity?  Earnings from these giants, as well as AAPL (also reporting this afternoon) may be a deciding factor in whether or not we will see a turnaround for stocks as the week closes. 

Investors are bracing themselves for a worsening situation stateside – potential lockdowns, election uncertainty, big tech pressure – the list could go on.  Our trade alert for today highlights a global approach to small-cap investing, for those who are seeking to profit from small-cap’s strong growth potential through a wide sampling of companies from countries like Australia and Japan.

Because of their size, small-cap stocks have strong, albeit volatile, growth potential.  If you’re interested in adding global small-cap stocks to your portfolio as 2020 draws to a close, iShares MSCI EAFE Small-Cap ETF (SCZ) can reduce the volatility associated with individual stocks while adding an important layer of diversification to your portfolio.  Not to mention, the fund also provides global exposure.  

iShares MSCI EAFE Small-Cap ETF (SCZ) focuses on stock offerings from Europe, Australia and the Far East (EAFE).  Allowing investors to round out their portfolio with stocks from Japan and the U.K. and Australia with names you may never have known existed and which may not be easily accessible in your brokerage account without an ETF.  With more than 2,300 holdings, this iShares offering is a great way to supplement your existing portfolio without the risk of overlapping domestic holdings. 

  • Net Assets      $9.24B
  • Yield                 3.06%
  • Expense ratio   0.4%
  • Top Holdings – HelloFresh SE, Rightmove PLC, Euronet NV