GE Aerospace Conducts Testing of Hybrid-Electric Turboshaft Engine

Designed to provide broad exposure to the Mid Cap Value segment of the US equity market, the Invesco S&P MidCap 400 Revenue ETF (RWK) is a passively managed exchange traded fund launched on 02/22/2008.

The fund is sponsored by Invesco. It has amassed assets over $917.97 million, making it one of the average sized ETFs attempting to match the Mid Cap Value segment of the US equity market.

Why Mid Cap Value

Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. These types of companies, then, have a good balance of stability and growth potential.

Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.39%, making it one of the more expensive products in the space.

It has a 12-month trailing dividend yield of 1.03%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Industrials sector--about 23.50% of the portfolio. Consumer Discretionary and Financials round out the top three.

Looking at individual holdings, American Airlines Group Inc (AAL) accounts for about 2.96% of total assets, followed by Performance Food Group Co (PFGC) and Td Synnex Corp (SNX).

The top 10 holdings account for about 18% of total assets under management.

Performance and Risk

RWK seeks to match the performance of the OFI Revenue Weighted Mid Cap Index before fees and expenses. The S&P MidCap 400 Revenue-Weighted Index is constructed using a rules-based methodology that re-weights the constituent securities of the S&P MidCap 400 Index according to the revenue earned by the companies in the parent index, subject to a maximum 5% per company weighting.

The ETF has added roughly 17.25% so far this year and is up about 29.45% in the last one year (as of 11/22/2024). In the past 52-week period, it has traded between $95.61 and $123.18.

The ETF has a beta of 1.25 and standard deviation of 21.77% for the trailing three-year period, making it a medium risk choice in the space. With about 401 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P MidCap 400 Revenue ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RWK is a good option for those seeking exposure to the Style Box - Mid Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $14.11 billion in assets, Vanguard Mid-Cap Value ETF has $18.59 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Zacks Investment Research

For Immediate Release

Chicago, IL – November 22, 2024 – Stocks in this week’s article are Twilio Inc. TWLO, American Airlines Group Inc. AAL and Klaviyo, Inc. KVYO.

Buy These 3 Stocks with Upgraded Broker Ratings Right Now

Given the current upbeat market performance, it is difficult for retail investors to choose stocks independently and generate solid returns. To do this, one needs to understand the company fundamentals and try to place them against the current economic background to figure out how the stock may fare as an investment.

One way to cut short this task is to follow brokers’ recommendations. Stocks like Twilio Inc., American Airlines Group Inc. and Klaviyo, Inc. are worth betting on.

As brokers directly communicate with top management, they have more insight into what is happening in a particular company. They assess a company’s publicly available documents and even attend conference calls.

Brokers have more understanding of the overall sector and industry. They place company fundamentals against the current economic backdrop to determine how a particular stock will fare as an investment.

When brokers upgrade a stock, one can easily rely on their judgment. Yet, depending on broker upgrades is not enough to build your investment portfolio. Several other factors should be taken into account to ensure steady returns.

3 Stocks with Upgraded Brokers Ratings

Based in San Francisco, Twilio provides Cloud Communications Platform-as-a-Service. It enables developers to build, scale and operate real-time communications within software applications.

Twilio’s 2024 earnings are expected to jump 48.6% year over year. TWLO, sporting a Zacks Rank #1, has witnessed a 3.7% upward revision in broker ratings over the past four weeks.

Headquartered in Fort Worth, TX, American Airlines is the largest airline company globally. AAL’s primary business is to provide passenger and cargo services.

American Airlines’ 2024 earnings are projected to grow marginally on a year-over-year basis. The company, carrying a Zacks Rank #2 at present, has witnessed a 5% upward revision in broker ratings over the past four weeks.

Based in Boston, MA, Klaviyo provides a software-as-a-service platform globally. It offers Klaviyo, a cloud-native platform for data store, segmentation engine, campaigns and flows and messaging infrastructure.

Klaviyo’s 2024 earnings are expected to rise 36.1% year over year. KVYO, carrying a Zacks Rank #2, has witnessed a 4.1% upward revision in broker ratings over the past four weeks.

Get the remaining stock on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial of the Research Wizard today.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2373155/buy-these-3-stocks-with-upgraded-broker-ratings-right-now

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

Visit: https://www.zacks.com/

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks Investment Research

Court: S.D. Florida

Case: 1:23-cv-23057

The lawsuit filed by investors against Robinhood has been dismissed, officially closing the case.

On January 29, 2021, while other brokers lifted stock purchase restrictions, Robinhood continued to restrict purchases and expanded restrictions to more stocks, which impacted market prices.

The company’s actions were claimed to have distorted bid-offer pricing mechanisms and contributed to investment losses for those holding call options on stocks like , , , , , and .

On April 6, 2023, shareholders brought a claim against Robinhood, which has now been dismissed.