Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

ETF Picks For 3 Of America's Best Small Companies

Tue, Nov 13, 8:15 AM ET, by Michael Johnston

Through the development of ETFs, investors are not only able to apply them as a great diversification tools, but these funds also grant access to niche markets and businesses often overlooked in large portfolios. Small businesses are typically included in ETFs seeking high growth potential and diversification, even though within the first five years, 50% of all new businesses fail, while others not only flourish but expand. Those looking for some direction into promising small businesses, Forbes’ “Best Small Companies in America” list is a great place to start [see also How To Pick The Right ETF Every Time].

These companies are selected based on a number of requirements, including having an annual revenue between $5 million and $1 billion, they need to have traded for more than a year, and boast a stock price above $5 a share. The highest ranked companies were selected based on earnings growth, sales growth, and return on equity over the last few years. Investors who are looking for great growth potential and aren’t afraid of a little risk should make sure to check out these three companies and the ETFs already invested in them:

SolarWinds, INC (SWI): Affordable IT Software

With data traffic expected to triple over the next five years, SolarWinds is first on Forbes’ Best Small Companies in America list, as this software company continues to chip away at sales to much larger competitors IBM and HP. By selling software for IT departments that are 80% of functionality but at a tenth of the price, this small firm many not be small for long as sales have grown 38% since 2006 to create a market cap of $233 million [see also High Tech ETFdb Portfolio].

For those looking to cash in on this technology firm, there is currently only one option for ETF investing, the Technology AlphaDEX Fund (FXL). This First Trust ETF has a higher than average expense ratio of 0.70% and SolarWinds only makes up for 2.42% of the portfolio, but with a three-year-return of almost 30% it seems the other companies it holds are also on their way up.

Questcor Pharmaceuticals, Inc (QCOR): Niche BioTech

This biopharmaceutical company has created products in its niche market of serious and hard-to-treat autoimmune and inflammatory disorders, where it leads the industry in research and developing medication for market. Its flagship product, H.P. Acthar Gel, is prescribed to treat infantile spasms (a rare form of epilepsy), multiple sclerosis (where the body damages its own spinal cord), and nephrotic syndrome (where the body damages its own kidneys) [see also ETF Picks For 3 Of The World's Most Innovative Companies].

Currently, there are four exchange-traded products that offer exposure to Questcor, but none offer very high exposure, with the S&P Small-Cap 600 Growth ETF (VIOG) giving the most weighting of them all, 1.28%. The S&P Small-Cap 600 ETF (VIOO) also holds Questcor, but it makes up less than 1% of the fund. Both the Russeell 2000 Growth ETF (VTWG) and Russell 2000 ETF (VTWO) also hold this pharmaceutical firm, but a lot of interest has dried up after healthcare provider Aetna decided to limit its reimbursement of Acthar Gel.

Cirrus Logic, Inc (CRUS): Semiconductor Kings

This small semiconductor group has obtained over 1000 patents on over 700 products since its founding in 1981, and some pretty big clients, namely Apple, who accounted for 62% of sales last year. Their audio processors and converters can be found in smartphones, tablets, MP3s and other portable electronics, and their newest line of remote controlled LED lights are making waves in the industry. With fewer then 500 highly specialized employees, Cirrus has made almost $434 million in revenues and it deals with Apple should only help it grow more [see also Actionable Ideas for ETFs].

There are 10 ETFs with varying levels of exposure to Cirrus, but none with more weighting than the SPDR S&P Semiconductor ETF (XSD). This specialized technology fund allocates 2.78% of its total assets to Cirrus, while the S&P SmallCap Information Technology Portfolio (PSCT) is a close second with its 2.71% weighting. For a more diversified view of the small cap market that still has exposure to our growing semiconductor firm, investors could try the S&P Smallcap 600 Pure Growth (RZG) or SmallCap Earnings Fund (EES). Other ETFs with meaningful allocations to Cirrus include:

  • Small Cap Growth AlphaDEX Fund (FYC)
  • SDPR S&P 600 Small Cap Growth ETF (SLYG)
  • S&P SmallCap 600 Growth Index Fund (IJT)
  • SPDR S&P 600 Small Cap ETF (SLY)
  • Core S&P Small-Cap ETF (IJR)
  • Russell 2000 Growth (IWO)

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.

Click here to read the original article on ETFdb.com.


SDI Glossary: "Alpha" Definition
SDI Glossary: "price" Definition
SDI Glossary: "Earnings" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "FY" Definition
This Article's Word Cloud:   AlphaDEX   Cirrus   Companies   ETFdb   ETFs   Forbes   Fund   Growth   Portfolio   Questcor   Small   SmallCap   SolarWinds   This   also   businesses   companies   damages   diversification   exposure   firm   five   great   growth   investors   looking   market   million   more   niche   offer   only   over   products   sales   small   software   technology   than   that   them   there   these   this   treat   weighting   where   with   year   years

| More

Why ConocoPhillips is a Top 25 Dividend Giant (COP)
Wed, Aug 5, 8:14 AM ET, by ETF Channel

ConocoPhillips (COP) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, with ...

STIP Crosses Critical Technical Indicator
Tue, Aug 4, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the iShares 0-5 Year TIPS Bond ETF (STIP) entered ...

Shares of EDIV Now Oversold
Tue, Aug 4, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR S&P Emerging Markets Dividend ETF (EDIV) entered ...

SUB Crosses Below Key Moving Average Level
Tue, Aug 4, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the iShares Short-Term National AMT-Free Muni Bond ETF (SUB) ...

HanesBrands Takes Over #26 Spot From Prologis
Tue, Aug 4, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

iShares 20+ Year Treasury Bond ETF Experiences Big Outflow
Tue, Aug 4, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: TLT Exchange traded funds (ETFs) trade just like stocks, but ...

VDC, PEP, WMT, MDLZ: ETF Inflow Alert
Tue, Aug 4, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VDC, PEP, WMT, MDLZ Exchange traded funds (ETFs) trade just ...

IYT: ETF Inflow Alert
Tue, Aug 4, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IYT Exchange traded funds (ETFs) trade just like stocks, but ...

EFAV: Large Inflows Detected at ETF
Tue, Aug 4, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EFAV Exchange traded funds (ETFs) trade just like stocks, but ...

FXH, DXCM, HNT, ABC: ETF Inflow Alert
Tue, Aug 4, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FXH, DXCM, HNT, ABC Exchange traded funds (ETFs) trade just ...

AAIT Crowded With Sellers
Tue, Aug 4, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares MSCI All Country Asia Information Technology ETF ...

SPDR S&P Semiconductor Getting Very Oversold
Tue, Aug 4, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR S&P Semiconductor ETF (XSD) entered into oversold ...

TAN Crosses Critical Technical Indicator
Tue, Aug 4, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the Guggenheim Solar ETF (TAN) entered into oversold territory, ...

SPDR S&P Dividend ETF Experiences Big Outflow
Tue, Aug 4, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: SDY, T, HCP, PBCT Exchange traded funds (ETFs) trade just ...

IWV: ETF Outflow Alert
Tue, Aug 4, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IWV Exchange traded funds (ETFs) trade just like stocks, but ...

CRED: ETF Outflow Alert
Tue, Aug 4, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: CRED Exchange traded funds (ETFs) trade just like stocks, but ...

Why International Business Machines is a Top 25 Dividend Giant (IBM)
Tue, Aug 4, 8:14 AM ET, by ETF Channel

International Business Machines Corp. (IBM) has been named as a Top 25 ''Dividend Giant'' by ...

International Business Machines a Top Socially Responsible Dividend Stock With 3.3% Yield (IBM)
Tue, Aug 4, 8:14 AM ET, by ETF Channel

International Business Machines Corp. (IBM) has been named a Top Socially Responsible Dividend Stock by ...

Vanguard Energy (VDE) Enters Oversold Territory
Mon, Aug 3, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the Vanguard Energy ETF (VDE) entered into oversold territory, ...

XLE Crosses Critical Technical Indicator
Mon, Aug 3, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the Energy Select Sector SPDR Fund ETF (XLE) entered ...

Daily Energy Bull 3x Shares (ERX) Enters Oversold Territory
Mon, Aug 3, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the Daily Energy Bull 3x Shares ETF (ERX) entered ...

NASDAQ China Technology (QQQC) Enters Oversold Territory
Mon, Aug 3, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the NASDAQ China Technology ETF (QQQC) entered into oversold ...

Shares of DIG Now Oversold
Mon, Aug 3, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the ProShares Ultra Oil & Gas ETF (DIG) entered ...

IEO Crowded With Sellers
Mon, Aug 3, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the iShares U.S. Oil & Gas Exploration & Production ...

See How Intel Ranks Among Analysts' Top Dow 30 Picks
Mon, Aug 3, 12:14 PM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that Intel Corp (INTC) is ...

PepsiCo Achieves #51 Analyst Rank, Surpassing Salesforce.com
Mon, Aug 3, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

Shares of JNUG Now Oversold
Mon, Aug 3, 11:14 AM ET, by ETF Channel

In trading on Monday, shares of the Daily Junior Gold Miners Index Bull 3x Shares ...

LQD: ETF Inflow Alert
Mon, Aug 3, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: LQD Exchange traded funds (ETFs) trade just like stocks, but ...

IWN: Large Outflows Detected at ETF
Mon, Aug 3, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IWN Exchange traded funds (ETFs) trade just like stocks, but ...

XLF, BRK.B, C, AIG: ETF Outflow Alert
Mon, Aug 3, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XLF, BRK.B, C, AIG Exchange traded funds (ETFs) trade just ...

11.4% of XSLV Holdings Seeing Recent Insider Buys
Mon, Aug 3, 10:14 AM ET, by ETF Channel

A look at the weighted underlying holdings of the PowerShares S&P SmallCap Low Volatility Portfolio ...

Why Caterpillar is a Top 25 SAFE Dividend Stock (CAT)
Mon, Aug 3, 8:14 AM ET, by ETF Channel

Caterpillar Inc. (CAT) has been named to the Dividend Channel ''S.A.F.E. ...

Why Intel is a Top Socially Responsible Dividend Stock (INTC)
Mon, Aug 3, 8:14 AM ET, by ETF Channel

Intel Corp (INTC) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

EWS Crosses Critical Technical Indicator
Fri, Jul 31, 4:24 PM ET, by ETF Channel

In trading on Friday, shares of the iShares MSCI Singapore ETF (EWS) entered into oversold ...

CMDT Crosses Critical Technical Indicator
Fri, Jul 31, 4:24 PM ET, by ETF Channel

In trading on Friday, shares of the iShares Commodity Optimized Trust ETF (CMDT) entered into ...

COMT Crosses Critical Technical Indicator
Fri, Jul 31, 4:24 PM ET, by ETF Channel

In trading on Friday, shares of the iShares Commodities Select Strategy ETF (COMT) entered into ...

FMF Crosses Above Key Moving Average Level
Fri, Jul 31, 4:24 PM ET, by ETF Channel

In trading on Friday, shares of the First Trust Morningstar Managed Futures Strategy Fund ETF ...

CGW Crosses Above Key Moving Average Level
Fri, Jul 31, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Guggenheim S&P Global Water Index ETF (CGW) crossed ...

VGIT Crosses Above Key Moving Average Level
Fri, Jul 31, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Vanguard Intermediate-Term Government Bond ETF (VGIT) crossed above ...

Vanguard Short-Term Bond (BSV) Shares Cross Above 200 DMA
Fri, Jul 31, 10:54 AM ET, by ETF Channel

In trading on Friday, shares of the Vanguard Short-Term Bond ETF (BSV) crossed above their ...

TYD Makes Bullish Cross Above Critical Moving Average
Fri, Jul 31, 10:54 AM ET, by ETF Channel

In trading on Friday, shares of the Daily 7-10 Year Treasury Bull 3x Shares ETF ...

DBO Crowded With Sellers
Fri, Jul 31, 10:54 AM ET, by ETF Channel

In trading on Friday, shares of the PowerShares DB Oil Fund ETF (DBO) entered into ...

VDE, COP, OXY, PSX: ETF Outflow Alert
Fri, Jul 31, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VDE, COP, OXY, PSX Exchange traded funds (ETFs) trade just ...

AOR Crosses Above Key Moving Average Level
Fri, Jul 31, 10:54 AM ET, by ETF Channel

In trading on Friday, shares of the iShares Core Growth Allocation ETF (AOR) crossed above ...

CIU: ETF Outflow Alert
Fri, Jul 31, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: CIU Exchange traded funds (ETFs) trade just like stocks, but ...

RWX, BAM.A.CA, REI.UN.CA, HR.UN.CA: ETF Inflow Alert
Fri, Jul 31, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: RWX, BAM.A.CA, REI.UN.CA, HR.UN.CA Exchange traded funds (ETFs) trade just ...

15.2% of FRI Holdings Seeing Recent Insider Buys
Fri, Jul 31, 9:34 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust S&P REIT Index Fund ...

HCP Named A Top Socially Responsible Dividend Stock
Fri, Jul 31, 8:14 AM ET, by ETF Channel

HCP, Inc. (HCP) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

BRXX Crowded With Sellers
Thu, Jul 30, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the EGShares Brazil Infrastructure ETF (BRXX) entered into oversold ...

IDX Crosses Critical Technical Indicator
Thu, Jul 30, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the Indonesia Index ETF (IDX) entered into oversold territory, ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

ETF Picks For 3 Of America's Best Small Companies | Self Directed Investor | Copyright © 2008 - 2015, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.