What about the smaller companies stateside? For the most part, we're still witnessing a preference for larger, well-known brand names over the perceived risks associated with the lesser-knowns. The iShares Russell 2000 (IWM) price ratio to the S&P 500 may demonstrate a bit more "give-n-take" between large company stock and small company stock, but the momentum still favors the largest corporations.
The take-home? If you're going to allocate more to stocks, don't get sucked in by an erroneous notion that money is pouring back into the highest-beta, most-volatile assets.
Exchange-traded vehicles like SPDR S&P 500 (SPY), Vanguard Dividend Growth (VIG) and Vanguard High Dividend Yield (VYM) are still providing more reward for the volatility than the above-mentioned competition... and even there I strongly recommend the protection of stop-limit loss orders.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.
Gary Gordon reads: Real Clear Markets
On Twitter, Gary Gordon follows: Jonathan Hoenig
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