Individual ETF Investors May Wish to Lean Toward Revenue Beaters
Over the last month and the last three months, this exchange-traded tracker has outperformed all but one of the nine S&P Style indices ( Large Cap Value). Presently, it is above a 50-day as well as its 200-day.
Unfortunately, RWL typically serves up 30,000 shares in daily trading volume ($800,000 in dollar volume). This is not as attractive for institutional investors who purchase tens of thousands of ETF shares in bulk and who trade with some degree of frequency. Yet an individual investor who believes that revenues are much more difficult to manipulate than profits, or who believes that lower P/S (price-to-sales) ratios reflect greater bargains, may want to lean toward this revenue-weighted index fund.
You can listen to the ETF Expert Radio Show "LIVE", via podcast or on your iPod. You can follow me on Twitter @ETFexpert.This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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