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

PCY Makes Bullish Cross Above Critical Moving Average
Fri, Jan 30, 3:54 PM ET, by ETF Channel

In trading on Friday, shares of the PowerShares Emerging Markets Sovereign Debt Portfolio ETF (PCY) ...

VFH, JPM, BAC, BRK.B: Large Outflows Detected at ETF
Fri, Jan 30, 12:14 PM ET, by ETF Channel

Symbols mentioned in this story: VFH, JPM, BAC, BRK.B Exchange traded funds (ETFs) trade just ...

Vanguard Short-Term Bond ETF Experiences Big Outflow
Fri, Jan 30, 12:14 PM ET, by ETF Channel

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

IUSG, VZ, BIIB, HON: ETF Outflow Alert
Fri, Jan 30, 12:14 PM ET, by ETF Channel

Symbols mentioned in this story: IUSG, VZ, BIIB, HON Exchange traded funds (ETFs) trade just ...

DBA: ETF Outflow Alert
Fri, Jan 30, 12:14 PM ET, by ETF Channel

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

iShares Core S&P 500 ETF Experiences Big Outflow
Fri, Jan 30, 12:14 PM ET, by ETF Channel

Symbols mentioned in this story: IVV, AAPL, XOM, MSFT Exchange traded funds (ETFs) trade just ...

MBB: Large Outflows Detected at ETF
Fri, Jan 30, 12:14 PM ET, by ETF Channel

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

17.3% of FNK Holdings Seeing Recent Insider Buys
Fri, Jan 30, 9:49 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Mid Cap Value AlphaDEX ...

Why HCP is a Top Socially Responsible Dividend Stock (HCP)
Fri, Jan 30, 8:14 AM ET, by ETF Channel

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

Ryder System Takes Over #84 Spot From Applied Materials
Thu, Jan 29, 12:14 PM ET, by ETF Channel

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

SPY, BA, MCD, GS: ETF Outflow Alert
Thu, Jan 29, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: SPY, BA, MCD, GS Exchange traded funds (ETFs) trade just ...

HDV, GE, MO, CSCO: ETF Inflow Alert
Thu, Jan 29, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: HDV, GE, MO, CSCO Exchange traded funds (ETFs) trade just ...

QUAL, IBM, V, GOOGL: ETF Inflow Alert
Thu, Jan 29, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: QUAL, IBM, V, GOOGL Exchange traded funds (ETFs) trade just ...

VHT, UNH, BMY, LLY: ETF Inflow Alert
Thu, Jan 29, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: VHT, UNH, BMY, LLY Exchange traded funds (ETFs) trade just ...

XLU, DUK, NEE, SO: Large Inflows Detected at ETF
Thu, Jan 29, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: XLU, DUK, NEE, SO Exchange traded funds (ETFs) trade just ...

AOA Makes Notable Cross Below Critical Moving Average
Thu, Jan 29, 11:24 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares Aggressive Allocation ETF (AOA) crossed below their ...

TUR Crosses Below Key Moving Average Level
Thu, Jan 29, 11:24 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares MSCI Turkey ETF (TUR) crossed below their ...

IYJ Crosses Below Key Moving Average Level
Thu, Jan 29, 11:14 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares U.S. Industrials ETF (IYJ) crossed below their ...

TYBS Crowded With Sellers
Thu, Jan 29, 10:54 AM ET, by ETF Channel

In trading on Thursday, shares of the Daily 20+ Year Treasury Bear 1x Shares ETF ...

Praxair Top Socially Responsible Dividend Stock With 2.3% Yield (PX)
Thu, Jan 29, 9:24 AM ET, by ETF Channel

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

UTX a Top 25 Dividend Giant With $4.31B Held By ETFs
Thu, Jan 29, 9:24 AM ET, by ETF Channel

United Technologies Corp. (UTX) has been named as a Top 25 ''Dividend Giant'' by ETF ...

First Trust Mega Cap AlphaDEX Fund (FMK) Shares Cross Below 200 DMA
Wed, Jan 28, 4:24 PM ET, by ETF Channel

In trading on Wednesday, shares of the First Trust Mega Cap AlphaDEX Fund ETF (FMK) ...

FYT Makes Notable Cross Below Critical Moving Average
Wed, Jan 28, 4:24 PM ET, by ETF Channel

In trading on Wednesday, shares of the First Trust Small Cap Value AlphaDEX Fund ETF ...

First Trust Large Cap Value AlphaDEX Fund Breaks Below 200-Day Moving Average - Notable for FTA
Wed, Jan 28, 4:24 PM ET, by ETF Channel

In trading on Wednesday, shares of the First Trust Large Cap Value AlphaDEX Fund ETF ...

SPDR Russell/Nomura Small Cap Japan (JSC) Shares Cross Above 200 DMA
Wed, Jan 28, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the SPDR Russell/Nomura Small Cap Japan ETF (JSC) crossed ...

SCJ Crosses Above Key Moving Average Level
Wed, Jan 28, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Japan Small-Cap ETF (SCJ) crossed above ...

KRE, ISBC, NPBC, PVTB: ETF Outflow Alert
Wed, Jan 28, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: KRE, ISBC, NPBC, PVTB Exchange traded funds (ETFs) trade just ...

ACWX, INFY, BAM, IBN: ETF Outflow Alert
Wed, Jan 28, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: ACWX, INFY, BAM, IBN Exchange traded funds (ETFs) trade just ...

XLP, KO, PM, CVS: ETF Inflow Alert
Wed, Jan 28, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XLP, KO, PM, CVS Exchange traded funds (ETFs) trade just ...

BND: Large Outflows Detected at ETF
Wed, Jan 28, 10:54 AM ET, by ETF Channel

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

First Trust Small Cap Value AlphaDEX Fund -- Insider Buying Index Registering 13.5%
Wed, Jan 28, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Small Cap Value AlphaDEX ...

Why HCP is a Top 25 SAFE Dividend Stock (HCP)
Wed, Jan 28, 9:34 AM ET, by ETF Channel

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

Merck a Top Socially Responsible Dividend Stock With 2.9% Yield (MRK)
Wed, Jan 28, 9:34 AM ET, by ETF Channel

Merck & Co., Inc (MRK) has been named a Top Socially Responsible Dividend Stock by ...

Avery Dennison Achieves #18 Analyst Rank, Surpassing Stericycle
Tue, Jan 27, 12:14 PM ET, by ETF Channel

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

MTK, CTSH, GLW, NFLX: ETF Inflow Alert
Tue, Jan 27, 11:54 AM ET, by ETF Channel

Symbols mentioned in this story: MTK, CTSH, GLW, NFLX Exchange traded funds (ETFs) trade just ...

VDE, KMI.WS, APC, PSX: Large Inflows Detected at ETF
Tue, Jan 27, 11:54 AM ET, by ETF Channel

Symbols mentioned in this story: VDE, KMI.WS, APC, PSX Exchange traded funds (ETFs) trade just ...

VUG, ACT, AGN, ESRX: ETF Inflow Alert
Tue, Jan 27, 11:54 AM ET, by ETF Channel

Symbols mentioned in this story: VUG, ACT, AGN, ESRX Exchange traded funds (ETFs) trade just ...

VDC, CL, COST, MDLZ: Large Inflows Detected at ETF
Tue, Jan 27, 11:54 AM ET, by ETF Channel

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

Vanguard Large-Cap ETF Experiences Big Inflow
Tue, Jan 27, 11:54 AM ET, by ETF Channel

Symbols mentioned in this story: VV, MOS, BLL, NRG Exchange traded funds (ETFs) trade just ...

PRN Makes Notable Cross Below Critical Moving Average
Tue, Jan 27, 11:34 AM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares DWA Industrials Momentum Portfolio ETF (PRN) crossed ...

10.2% of FBT Holdings Seeing Recent Insider Buys
Tue, Jan 27, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust NYSE Arca Biotechnology Index ...

Kinder Morgan a Top 25 Dividend Giant With 4.26% Yield (KMI)
Tue, Jan 27, 8:54 AM ET, by ETF Channel

Kinder Morgan Inc. (KMI) has been named as a Top 25 ''Dividend Giant'' by ETF ...

PepsiCo a Top Ranked SAFE Dividend Stock With 2.7% Yield (PEP)
Tue, Jan 27, 8:54 AM ET, by ETF Channel

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

Procter & Gamble a Top Socially Responsible Dividend Stock With 2.9% Yield (PG)
Tue, Jan 27, 8:54 AM ET, by ETF Channel

Procter & Gamble Co. (PG) has been named a Top Socially Responsible Dividend Stock by ...

IPD Crosses Above Key Moving Average Level
Mon, Jan 26, 4:24 PM ET, by ETF Channel

In trading on Monday, shares of the SPDR S&P International Consumer Discretionary Sector ETF (IPD) ...

SPDR Russell Small Cap Completeness Breaks Above 200-Day Moving Average - Bullish for RSCO
Mon, Jan 26, 4:24 PM ET, by ETF Channel

In trading on Monday, shares of the SPDR Russell Small Cap Completeness ETF (RSCO) crossed ...

UCD Crowded With Sellers
Mon, Jan 26, 4:24 PM ET, by ETF Channel

In trading on Monday, shares of the ProShares Ultra Bloomberg Commodity ETF (UCD) entered into ...

EWJ Makes Bullish Cross Above Critical Moving Average
Mon, Jan 26, 4:24 PM ET, by ETF Channel

In trading on Monday, shares of the iShares MSCI Japan ETF (EWJ) crossed above their ...

SPLV, MAC, VNO, TRV: ETF Inflow Alert
Mon, Jan 26, 12:14 PM ET, by ETF Channel

Symbols mentioned in this story: SPLV, MAC, VNO, TRV Exchange traded funds (ETFs) trade just ...

CVY, PDI, HIMX, PCI: Large Outflows Detected at ETF
Mon, Jan 26, 12:14 PM ET, by ETF Channel

Symbols mentioned in this story: CVY, PDI, HIMX, PCI Exchange traded funds (ETFs) trade just ...

Related videos | all videos »
  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 over 1000 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.