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This ETF is part of a suite of "market neutral" products offered by QuantShares, a unique lineup of funds that has the potential to appreciate (or lose value) in any type of market. Because SIZ maintains equal long and short dollar positions, its performance is independent of the overall U.S. stock market; rather, it depends on how certain sub-sets (or factors) of the U.S. equity market perform relative to one another. As such, these securities can be used in a number of different ways. Since it should exhibit very low correlations to both stock and bond markets (SIZ should have a beta of close to zero), some may see this ETF as a tool for smoothing out portfolio volatility--essentially a diversifying agent within traditional stock-and-bond portfolios. Others who believe the methodology has the potential to exploit market inefficiencies may see it as a means of generating alpha over both long and short time periods. Specifically, SIZ is designed to capture the spread return between large and small U.S.; the portfolio maintains short positions in U.S. equities with the greatest market capitalization and long positions in U.S. equities with the lowest market capitalizations. Given this objective, SIZ can be generally expected to struggle when small cap stocks beat their large cap counterparts. Since small caps tend to be more volatile than large cap stocks, SIZ may maintain a risk/return profile similar to BTAH, which goes long in high beta stocks and short low beta stocks. SIZ is essentially a bet on outperformance from small cap companies, but with far less volatility than a traditional long position in small cap stocks (such as an investment in any of the ETFs in the Small Cap Blend Equities ETFdb Category); returns will be limited to the differential between these two segments of the U.S. equity market, and should be expected to be close to zero over the long haul. This investment approach is certainly nothing new; investors have been implementing strategies designed to capture the spreads between stocks of different sizes for decades. But the availability of this strategy within the ETF wrapper is a new innovation; it gives investors an opportunity to access a technique that may be time consuming and quite expensive if implemented individually through a single ticker symbol that brings all the efficiencies of ETFs. There are a couple noteworthy aspects of SIZ (and all QuantShares ETFs for that matter). The underlying portfolios are sector neutral, which ensures that the fund isn't simply short in corners of the market that tend to have greater concentrations of large cap companies (such as energy and financials) and long those that generally include smaller stocks. Moreover, individual positions are equal weighted, which ensures that no one stock will dominate either the long or short positions in the portfolio. For investors who are seeking a low maintenance way to bet on strong relative performance from small cap stocks, SIZ could be an attractive option. Of course, there are a number of ways for investors to achieve similar exposure on their own; going long in small cap ETFs and short large cap products would be a generally similar strategy. The most significant drawback we see to this ETF is the relatively high expense ratio charged. Because the underlying portfolio is market neutral (it is comprised of equal long and short positions), it would be reasonable to expect that long-term performance, before fees, should be close to zero. After taking out 80 basis points or so in expenses, that makes it likely that SIZ will lose money over the long haul. SIZ's appeal lies in its low volatility and low maintenance access to a somewhat sophisticated investment strategy, not in its potential for impressive long-term performance.
The adjacent table gives investors an individual Realtime Rating for SIZ on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Long-Short with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb.com Category.
This section compares how balanced and deep this ETF is relative to the peer group ETFdb.com Category.
This ETF is not currently available for commission free trading on any platforms.
There are 14 other ETFs in the Long-Short ETFdb.com Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb.com Category.
This section compares the fund flows of this ETF to peers in the same ETFdb.com Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of SIZ relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb.com Category.