SPSM Fundamental Analysis
ETF Overview: The SPDR Portfolio S&P 600 Small Cap ETF (SPSM) focuses on mid-cap value investments, primarily in the Services sector, with Money Center Banks being its largest industry exposure.
Investment Factors Analysis: The report provides a detailed analysis of SPSM's exposure to key investing factors such as value, quality, momentum, and low volatility, scoring from 1 to 99.
Trade with 70% Backtested Accuracy
Analyst Views on SPSM
About the author
Stock Market Forecast: Sustaining the Rally Through 2026
AI's Impact on Markets: The ongoing debate for 2026 centers around the influence of artificial intelligence on market performance.
Investment Opportunities: Despite uncertainties, there are potential bargains and foundational elements that could lead to a positive year for stocks and bonds.
ETF Outflow Warning: SPSM, BWA, IDCC, CTRE
SPSM Share Price Analysis: SPSM's share price is currently at $47.62, with a 52-week low of $34.79 and a high of $48.99, indicating a relatively stable position within its trading range.
Understanding ETFs: Exchange-traded funds (ETFs) function like stocks, where investors buy and sell "units" that can be created or destroyed based on demand, impacting the underlying assets.
Monitoring ETF Flows: Weekly analysis of shares outstanding helps identify ETFs with significant inflows (new units created) or outflows (units destroyed), which can affect the individual components held within those ETFs.
Disclaimer on Views: The opinions expressed in the article are solely those of the author and do not necessarily represent the views of Nasdaq, Inc.
Factors Supporting Optimism for Small-Caps as We Approach 2026 – BofA
Bullish Outlook for Small Caps: Bank of America strategists predict small cap stocks will outperform mid and large caps in 2026, driven by an expected 18% EPS growth compared to 16% for mid-caps and 13% for large caps.
Earnings Growth and Rate Cuts: Small cap earnings growth is anticipated to surpass that of large caps in the second half of 2025 and into 2026, aided by expected Federal Reserve rate cuts that will alleviate refinancing risks for small companies.
Capital Expenditure Benefits: The upcoming U.S. capital expenditure cycle is expected to favor small caps, as their sales growth has historically aligned with capex trends, alongside potential relief from tariffs that have disproportionately affected their margins.
Market Positioning: Current market conditions show multi-cap managers are underweight in small caps, holding only 1.8% of their portfolios in these stocks, despite a recent uptick in buying activity after years of selling.
Projected 12-Month Target for SPSM by Analysts
ETF Analysis: The SPDR Portfolio S&P 600 Small Cap ETF (SPSM) has an implied analyst target price of $53.42, indicating a potential upside of 16.32% from its current trading price of $45.93.
Notable Holdings: Key underlying holdings with significant upside potential include Forward Air Corp (74.51% upside), Corsair Gaming Inc (39.59% upside), and PENN Entertainment Inc (32.98% upside) based on their respective analyst target prices.
SPSM Aims for $53: Understanding the Components Behind the Goal
ETF Analysis: The SPDR Portfolio S&P 600 Small Cap ETF (SPSM) has an implied analyst target price of $53.01, indicating a potential upside of 14.06% from its current trading price of $46.48.
Notable Holdings: Key underlying holdings with significant upside potential include WillScot Holdings Corp (35.57% upside), Schrodinger Inc (28.11% upside), and Penguin Solutions Inc (26.00% upside) based on their respective analyst target prices.
Reasons Roth IRAs and Roth conversions might not be suitable for you
Roth IRA Conversions: Roth IRA conversions are increasingly popular among retirees seeking to minimize their tax liabilities as they age.
Tax Implications of Traditional Accounts: Contributions to traditional retirement accounts like IRAs and 401(k)s are tax-deferred, meaning taxes are paid only upon withdrawal, which is taxed as regular income.
Stock Market Forecast: Sustaining the Rally Through 2026
AI's Impact on Markets: The ongoing debate for 2026 centers around the influence of artificial intelligence on market performance.
Investment Opportunities: Despite uncertainties, there are potential bargains and foundational elements that could lead to a positive year for stocks and bonds.
ETF Outflow Warning: SPSM, BWA, IDCC, CTRE
SPSM Share Price Analysis: SPSM's share price is currently at $47.62, with a 52-week low of $34.79 and a high of $48.99, indicating a relatively stable position within its trading range.
Understanding ETFs: Exchange-traded funds (ETFs) function like stocks, where investors buy and sell "units" that can be created or destroyed based on demand, impacting the underlying assets.
Monitoring ETF Flows: Weekly analysis of shares outstanding helps identify ETFs with significant inflows (new units created) or outflows (units destroyed), which can affect the individual components held within those ETFs.
Disclaimer on Views: The opinions expressed in the article are solely those of the author and do not necessarily represent the views of Nasdaq, Inc.
Factors Supporting Optimism for Small-Caps as We Approach 2026 – BofA
Bullish Outlook for Small Caps: Bank of America strategists predict small cap stocks will outperform mid and large caps in 2026, driven by an expected 18% EPS growth compared to 16% for mid-caps and 13% for large caps.
Earnings Growth and Rate Cuts: Small cap earnings growth is anticipated to surpass that of large caps in the second half of 2025 and into 2026, aided by expected Federal Reserve rate cuts that will alleviate refinancing risks for small companies.
Capital Expenditure Benefits: The upcoming U.S. capital expenditure cycle is expected to favor small caps, as their sales growth has historically aligned with capex trends, alongside potential relief from tariffs that have disproportionately affected their margins.
Market Positioning: Current market conditions show multi-cap managers are underweight in small caps, holding only 1.8% of their portfolios in these stocks, despite a recent uptick in buying activity after years of selling.
Projected 12-Month Target for SPSM by Analysts
ETF Analysis: The SPDR Portfolio S&P 600 Small Cap ETF (SPSM) has an implied analyst target price of $53.42, indicating a potential upside of 16.32% from its current trading price of $45.93.
Notable Holdings: Key underlying holdings with significant upside potential include Forward Air Corp (74.51% upside), Corsair Gaming Inc (39.59% upside), and PENN Entertainment Inc (32.98% upside) based on their respective analyst target prices.
SPSM Aims for $53: Understanding the Components Behind the Goal
ETF Analysis: The SPDR Portfolio S&P 600 Small Cap ETF (SPSM) has an implied analyst target price of $53.01, indicating a potential upside of 14.06% from its current trading price of $46.48.
Notable Holdings: Key underlying holdings with significant upside potential include WillScot Holdings Corp (35.57% upside), Schrodinger Inc (28.11% upside), and Penguin Solutions Inc (26.00% upside) based on their respective analyst target prices.
Reasons Roth IRAs and Roth conversions might not be suitable for you
Roth IRA Conversions: Roth IRA conversions are increasingly popular among retirees seeking to minimize their tax liabilities as they age.
Tax Implications of Traditional Accounts: Contributions to traditional retirement accounts like IRAs and 401(k)s are tax-deferred, meaning taxes are paid only upon withdrawal, which is taxed as regular income.
