Finance charts


UIT Strategy Ideas: Small and Mid-Cap Investing


Small Stocks Powering the Market

Larger stocks have continued to lead the overall market but companies in the mid-cap space have also made sizeable contributions to returns due to strong economic data and earnings growth across a variety of industries. Breadth of returns can be a positive signal for a continued bull market. Smaller companies that do most of their business within the U.S. have been particularly attractive given ongoing trade disputes.

Source: Wall Street Journal, “It’s Not All Tech. Small Stocks Are Powering the Market Higher.” (9/16/2018)

Average YTD Total Return for Russell 3000 constituents, grouped by market cap only and market cap + style through 9.28.2018

Avg. YTD Total Return by Market Cap Avg. YTD Total Return by Market Cap + Style

Source: YCharts

Objective Strategy Description Investment Style Small/Mid-Cap Exposure*
Capital appreciation Selects stocks from the Automated Quantitative Analysis (“AQA®”) universe considered to be undervalued at a given time. Multi Cap Blend 70.00%

*Small/Mid-Cap Exposure data as of the deposit date for the Automated Quantitative Analysis Portfolio, Series 17, 9/14/2018

The Automated Quantitative Analysis Strategy offers exposure to domestic small & mid-cap stocks and has generated positive alpha over 3- and 5-year periods

3/5 Year Avg Annual Return/Alpha

3 Year Cumulative Total Return (9/28/2015 – 9/28/2018)

Chart: 3 Year Cumulative Total Return (9/28/2015 – 9/28/2018)

3 Years (as of 9/28/2018)

Data Sources: Bloomberg, YCharts, First Trust Portfolios, UIT Investing, Inc. Data as of 09/28/2018.
FT Automated Quantitative Analysis S&P 1500 Composite Index
Cumulative Return 92.01% 64.30%
Avg. Annual Return (CAGR) 24.29% 18.00%
Upside Capture Ratio 128.46%
Downside Capture Ratio 126.88%
Max Drawdown -18.91% -13.01%
Max Gain 126.77% 69.84%
Standard Deviation (Annualized) 16.20% 11.90%
Sharpe Ratio 1.479 1.431
R-Squared 0.796
Sortino Ratio (Annualized) 2.030 2.067
Treynor Ratio (Annualized) 0.191 0.172
Alpha (Annualized) 2.28%
Beta 1.206

5 Years (as of 9/28/2018)

Data Sources: Bloomberg, YCharts, First Trust Portfolios, UIT Investing, Inc. Data as of 09/28/2018.
FT Automated Quantitative Analysis S&P 1500 Composite Index
Cumulative Return 90.28% 89.49%
Avg. Annual Return (CAGR) 13.66% 13.63%
Upside Capture Ratio 109.50%
Downside Capture Ratio 110.83%
Max Drawdown -20.44% -13.45%
Max Gain 100.11% 94.63%
Standard Deviation (Annualized) 15.10% 12.30%
Sharpe Ratio 0.929 1.098
R-Squared 0.697
Sortino Ratio (Annualized) 1.304 1.548
Treynor Ratio (Annualized) 0.137 0.136
Alpha (Annualized) 0.19%
Beta 1.020

Both cumulative and average annual returns of the unit investment trust strategy for 3, 5, 10-year periods are based on distributions received in cash and assume income and principal distributions are paid out on the payable date during the life of the unit investment trust. All distributions from the series are reinvested at the time of purchase into the following series utilized in the historical chain of the strategy. The following series of a strategy is determined by utilizing the series intended for the investment continuation of the strategy upon termination. If no series intended for investment continuation of a strategy exists, the existing primary, if available, at time of termination is utilized. Returns are calculated excluding the Transactional Sales Charges for each unit investment trust series but does reflect the Creation & Development Fee and trust operating expenses as incurred for each unit investment trust series included in the calculation. The returns do not adjust for taxes. If adjusted or taxes, the effects of taxation would reduce the performance depicted.

Past performance is no indicator of future results. Investment return and principal value will fluctuate with changes in market conditions. We make no assurance that any investment product based on an index will accurately track index performance or provide positive investment returns. An investment in units of a unit investment trust and continuing the investment in units of subsequent series of a unit investment trust strategy, when redeemed may be worth more or less than their original investment.

The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Growth Index is constructed to provide a comprehensive and unbiased barometer for the large-cap growth segment.

Any written analysis appearing herein are statements of opinion and not statements of fact. The data and information contained herein has been obtained from sources believed to be reliable. However, we do not warrant the accuracy or completeness of any information, data or analysis contained herein and we provide no assurance that the content of this material is, in fact, accurate. This information, data, analysis and any opinions contained herein are for informational purposes only and does not constitute investment advice or a recommendation to buy, sell or hold a securities product or strategy. UIT Investing, Inc. does not provide investment advice and is not responsible for trading decisions, suitability determinations, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use.

All investments carry a certain degree of risk and there is no assurance that an investment will provide positive performance over any time period. Past performance is not indicative of future results and should never be relied upon in making an investment decision or recommendation.

Investors should consider the investment objectives, risks, charges and expenses of the unit investment trust(s) carefully before investing. The prospectus contains this and other information about the unit investment trust(s). This may not contain a complete discussion of investment terms or risks and you should only rely on the information contained in relevant prospectus and/or offering documentation prior to purchasing an investment product or making a recommendation to a customer. To obtain a prospectus, investors should contact their financial advisor. Please read the prospectus carefully before investing.

The Nasdaq Fund Network has the first dedicated database of unit investment trust research reports that gives finance professionals access to the information they need to make investment recommendations with confidence.

Download a sample report or create an account to get full access to all reports.

Download Sample


Be first to receive UIT insights and industry news by subscribing to our newsletter.