With Big Tech’s runaway 2024, it just might be time to part with a few winners. Here's why
- Market Performance in 2024: S&P 500 has gained nearly 12% this year, led by information technology and communication services sectors.
- Portfolio Rebalancing Importance: Rebalancing portfolios annually is crucial to maintain the desired asset allocation based on risk appetite and time horizon.
- Avoiding Lopsided Portfolios: Runaway appreciation in certain assets can distort portfolio risk profiles over time if not rebalanced regularly.
- Redeploying Investments: Trimming highly appreciated stocks can help investors reallocate funds to fixed income for diversification, especially with rising interest rates.
- Managing Tax Implications: Investors can mitigate capital gains tax impacts by using realized losses to offset gains or donating appreciated stock to charity.
Trade with 70% Backtested Accuracy
Analyst Views on DFAS
About the author
Attention Retirees: Time for Your Year-End Portfolio Assessment—Here’s How to Proceed.
- Portfolio Review Importance: December is a crucial time for reviewing investment portfolios, especially in light of potential shifts in the investment landscape.
- Retiree Considerations: Retirees need to be proactive and cannot afford to manage their investments passively as they approach 2026.
DFAS's Assets May Indicate a 15% Profit Opportunity
ETF Analysis: The Dimensional US Small Cap ETF (DFAS) has an implied analyst target price of $78.84 per unit, indicating a potential upside of 14.91% from its current trading price of $68.61.
Notable Holdings: Key underlying holdings with significant upside potential include Precision Biosciences Inc (DTIL) with a target price 440.44% higher than its current price, Avalo Therapeutics Inc (AVTX) with a 159.77% upside, and Cineverse Corp (CNVS) with a 149.27% potential increase.
Analyst Target Justification: The article raises questions about whether analysts' target prices are justified or overly optimistic, suggesting that further investor research is needed to assess the validity of these targets.
Market Sentiment: A high target price relative to a stock's trading price may indicate optimism but could also lead to potential downgrades if the targets do not align with recent developments in the companies or their industries.
DFAS Crosses Critical Technical Indicator
RSI Analysis: Dimensional US Small Cap's RSI is at 29.6, indicating potential exhaustion from heavy selling, compared to the S&P 500's RSI of 39.7.
Stock Performance: DFAS shares are currently trading at $61.99, down 2.6% for the day, with a 52-week range between $57.3256 and $71.78.
Notable Two Hundred Day Moving Average Cross - DFAS
Stock Performance: DFAS has a 52-week low of $57.3256 and a high of $71.78, with the last trade recorded at $64.60.
Market Analysis: The article mentions other ETFs that have recently fallen below their 200-day moving average, indicating potential market trends.
5 Small-Cap ETFs Hover Around an All-Time High: Here's Why
Small-Cap Stocks Performance: Small-cap stocks, represented by the Russell 2000 Index, have underperformed compared to larger indices this year, with a 13.6% increase versus higher gains in the S&P 500 and other major indices. However, some small-cap ETFs are showing promising growth, indicating potential for recovery.
Economic Indicators and Market Outlook: The U.S. economy grew at an annualized rate of 3% in Q2, exceeding expectations, which is favorable for small-cap stocks due to their domestic focus. Additionally, recent job gains and a Federal Reserve interest rate cut may further support small-cap performance amidst geopolitical tensions that have less impact on these stocks.
Big-cap bull market turns two, leaving small-cap stocks further behind
Small Cap Investors Seek Profitable Alternatives: Frustrated by the underperformance of small-cap stocks compared to large-cap stocks, investors are increasingly turning to ETFs that focus on profitable companies, as the S&P 500 has outperformed the Russell 2000 in 12 of the past 15 years.
Profitability Tilt Gaining Popularity: Many investors are opting for small-cap funds with a profitability tilt, such as the SPDR S&P Small Cap 600 ETF, which screens for positive earnings and has shown better performance than the Russell 2000, leading to significant inflows into these funds.
Attention Retirees: Time for Your Year-End Portfolio Assessment—Here’s How to Proceed.
- Portfolio Review Importance: December is a crucial time for reviewing investment portfolios, especially in light of potential shifts in the investment landscape.
- Retiree Considerations: Retirees need to be proactive and cannot afford to manage their investments passively as they approach 2026.
DFAS's Assets May Indicate a 15% Profit Opportunity
ETF Analysis: The Dimensional US Small Cap ETF (DFAS) has an implied analyst target price of $78.84 per unit, indicating a potential upside of 14.91% from its current trading price of $68.61.
Notable Holdings: Key underlying holdings with significant upside potential include Precision Biosciences Inc (DTIL) with a target price 440.44% higher than its current price, Avalo Therapeutics Inc (AVTX) with a 159.77% upside, and Cineverse Corp (CNVS) with a 149.27% potential increase.
Analyst Target Justification: The article raises questions about whether analysts' target prices are justified or overly optimistic, suggesting that further investor research is needed to assess the validity of these targets.
Market Sentiment: A high target price relative to a stock's trading price may indicate optimism but could also lead to potential downgrades if the targets do not align with recent developments in the companies or their industries.
DFAS Crosses Critical Technical Indicator
RSI Analysis: Dimensional US Small Cap's RSI is at 29.6, indicating potential exhaustion from heavy selling, compared to the S&P 500's RSI of 39.7.
Stock Performance: DFAS shares are currently trading at $61.99, down 2.6% for the day, with a 52-week range between $57.3256 and $71.78.
Notable Two Hundred Day Moving Average Cross - DFAS
Stock Performance: DFAS has a 52-week low of $57.3256 and a high of $71.78, with the last trade recorded at $64.60.
Market Analysis: The article mentions other ETFs that have recently fallen below their 200-day moving average, indicating potential market trends.
5 Small-Cap ETFs Hover Around an All-Time High: Here's Why
Small-Cap Stocks Performance: Small-cap stocks, represented by the Russell 2000 Index, have underperformed compared to larger indices this year, with a 13.6% increase versus higher gains in the S&P 500 and other major indices. However, some small-cap ETFs are showing promising growth, indicating potential for recovery.
Economic Indicators and Market Outlook: The U.S. economy grew at an annualized rate of 3% in Q2, exceeding expectations, which is favorable for small-cap stocks due to their domestic focus. Additionally, recent job gains and a Federal Reserve interest rate cut may further support small-cap performance amidst geopolitical tensions that have less impact on these stocks.
Big-cap bull market turns two, leaving small-cap stocks further behind
Small Cap Investors Seek Profitable Alternatives: Frustrated by the underperformance of small-cap stocks compared to large-cap stocks, investors are increasingly turning to ETFs that focus on profitable companies, as the S&P 500 has outperformed the Russell 2000 in 12 of the past 15 years.
Profitability Tilt Gaining Popularity: Many investors are opting for small-cap funds with a profitability tilt, such as the SPDR S&P Small Cap 600 ETF, which screens for positive earnings and has shown better performance than the Russell 2000, leading to significant inflows into these funds.
