RWJ vs. VTWO - ETF Comparison
RWJ - Invesco S&P SmallCap 600 Revenue ETF
The Invesco S&P SmallCap 600 Revenue ETF is an equity fund that tracks the S&P SmallCap 600 Revenue-Weighted Index, providing exposure to small-cap US stocks. The fund's unique revenue-weighting methodology allocates individual stocks based on top-line revenue, rather than market capitalization. This approach may appeal to investors seeking to shift exposure towards companies with low price-to-sales multiples and looking for an alternative to market cap-weighting. The fund is suitable for investors seeking to add small-cap exposure to their portfolios, with a focus on fundamental investment style and a blend of growth and value strategies.
VTWO - Vanguard Russell 2000 ETF
The Vanguard Russell 2000 ETF (VTWO) is a diversified equity fund that tracks the Russell 2000 index, providing exposure to small-cap companies in the US equity market. The fund offers a blend of growth and value securities, aiming to capture the growth potential of small-cap firms while mitigating volatility. With a large number of holdings and a market capitalization-weighted approach, VTWO provides a broad and diversified play on the US economy.
| RWJ | VTWO | |
|---|---|---|
| Fund Name | Invesco S&P SmallCap 600 Revenue ETF | Vanguard Russell 2000 ETF |
| Fund Provider | Invesco | Vanguard |
| Index | S&P SmallCap 600 Revenue-Weighted Index | Russell 2000 |
| Asset Class | Equity | Equity |
| Listing | US-listed | US-listed |
| Expense Ratio | 0.39% | 0.10% |
| Inception Date | 2008-02-19 | 2010-09-20 |
| Number Of Holdings | 603 | 1943 |
| Region | United States | United States |
| Investment Style | Blend | Blend |
| Market Cap | Micro-Cap | Micro-Cap |
| Leveraged | Non-leveraged | Non-leveraged |
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Key Metrics
Performance Metrics
Risk Metrics
Detailed Returns
Benchmark Comparison
Key Metrics
Performance Metrics
Risk Metrics
Detailed Returns
Benchmark Comparison
Performance Analysis
The performance analysis examines historical data to assess the returns of the investment strategy, including key metrics such as Cumulative returns, End of Year (EoY) returns, and risk-adjusted returns like the Sharpe ratio or the Sortino ratio.
Cumulative Returns
End of Year Returns Table
End of Year Returns
Risk Analysis
The risk analysis refers to an assessment of potential negative events that could lead to a loss of capital. Conducting a risk analysis can help in deciding whether an investment should be made. This is done using risk metrics such as drawdowns, volatility and beta which reflect stakeholders' confidence in the consistency of an investment strategy.
Drawdowns
Drawdowns Table
Monte Carlo Simulation
The Monte Carlo simulation is a statistical method used to forecast portfolio returns by generating a wide range of potential outcomes through random sampling from historical asset price data. It helps investors assess the potential risk and return of a portfolio under various market conditions. The simulation takes into account the initial investment and optionally simulates cash flow scenarios like fixed contributions, fixed withdrawals, or percentage withdrawals.
IMPORTANT: The forecast generated through Monte Carlo simulations is purely hypothetical and does not guarantee future returns. Investment decisions should be made with consideration of various factors, and past performance is not indicative of future results.