Paul Merriman
Sound Investing For Every Stage of Life 

Best-in-Class ETFs for Ultimate Buy & Hold Portfolio (Updated November, 2017)

 

What’s the best set of ETFs to use if we want to implement Paul Merriman’s Ultimate Buy and Hold Portfolio as a DIY investor?  That’s the question this article aims to address.  The resulting recommendations are available for DIY investors at www.paulmerriman.com/etf and in Paul’s various Motifs at www.motifinvesting.com.

 

To start, we need to define what we mean by “best.”  Obviously, keeping expenses low is a priority, but the Ultimate Buy and Hold Portfolio is based on academic research that says there’s been a higher return in small (low average market capitalization) and value (low price-to-book) equities.  That higher return has come with higher volatility, but by combining several different asset classes that are at least somewhat uncorrelated, or better yet negatively correlated, a higher return per unit of risk is possible.  So, what we’re looking for are representative ETFs for each asset class that tilt towards small and value while keeping expenses as low as possible. 

 

Other attributes matter as well.  Initially, we used eight characteristics to evaluate ETFs:  expense ratio, average market cap, price-to-book, number of stocks, bid-ask spread, turnover, impact on overall portfolio expected returns and yield as reported by Morningstar X-Ray.  Recently, we’ve also considered momentum, quality, tax efficiency plus pros and cons of the underlying indexes.  The expanded analysis led to switching the US small cap value ETF from RZV to SLYV for the tax-deferred Ultimate Buy and Hold portfolio, and using a mix of VBR/SLYV for tax-deferred accounts or VBR/IJS for taxable accounts which hold higher percentages of small-cap-value.  The benefits of the change are lower expenses, more than 5 times as many small-cap-value stocks plus some other improvements with only slightly higher average market size and price-to-book.  Another change is the inclusion of both emerging markets funds in all portfolios for added diversification.  Finally, we’ve added the Merriman Target Date Portfolios to the analysis.  You can see the results for the 50|50 US|WW portfolios and Merriman Target Date Portfolios (which are 70% US) in the table below. 

 

Only equities for tax-deferred accounts are shown.  For taxable accounts, remove REITs, and replace SLYV with IJS due to it’s better tax-efficiency.


 

November 2017 Best-in-Class Recommendation Update

Asset Classes

Paul’s All-Vanguard ETFs

Comprable

DFA Portfolio

Best-in-Class ETFs v2

(Nov, 2017)

All-Value BIC ETFs

All-SCV BIC ETFs

Merriman Target Date, Age 25

Merriman Target Date, Age 45

Merriman Target Date, Age 65

Large Cap Blend

VOO (11%)

DFUSX (10%)

VOO (11.3%)

---------------

---------------

---------------

VOO (4.5%)

VOO (7.9%)

Large Cap Value

VONV (11%)

DFLVX (10%)

VONV (11.2%)

VONV (25%)

---------------

---------------

VONV (4.5%)

VONV (7.9%)

Small Cap Blend

VIOO (11%)

DFSTX (10%))

VIOO (11.3%)

---------------

---------------

---------------

VIOO (4.5%)

VIOO (7.9%)

Small Cap Value

VIOV (12%)

DFSVX (10%)

SLYV (11.2%)

[ IJS in taxable]

VBR (9%) +

SLYV (16%)

[ IJS in taxable]

VBR (17.5%) +

SLYV (32.5%)

[ IJS in taxable]

VBR (24.5%)

+

SLYV (45.5%)

VBR (15.7%)

+SLYV (29.2%)

VBR (2.8%)

+

SLYV (5.1%)

US REIT

VNQ (5%)

DFREX (10%)

VNQ (5%)

---------------

---------------

---------------

VNQ (2%)

VNQ (3.5%)

Intl Large Cap Blend

VEA (10%)

DFALX (10%)

VEA (9%)

---------------

---------------

---------------

VEA (1.5%)

VEA (2.6%)

Intl Large Cap Value

VYMI (10%)

DFIVX (10%)

EFV (9%)

EFV (20%)

---------------

---------------

EFV (1.5%)

EFV (2.6%)

Intl Small Cap Blend

VSS (15%)

DFISX (10%)

VSS (9%)

---------------

---------------

---------------

VSS (1.5%)

VSS (2.6%)

Intl Small Cap Value

---------------

DISVX (10%)

DLS (9%)

DLS (20%)

DLS (30%)

DLS (20%)

DLS (13.2%)

DLS (2.6%)

Emerging Markets

VWO (10%)

DFEMX (4%)

VWO (4.5%)

VWO (5%)

VWO (10%)

VWO (5%)

VWO (3.8%)

VWO (1.5%)

Emerging Mkts SC

---------------

DEMSX (3%)

EWX (4.5%)

EWX (5%)

EWX (10%)

EWX (5%)

EWX (3.8%)

EWX (1.5%)

Intl REIT

VNQI (5%)

-------------

VNQI (5%)

---------------

---------------

---------------

VNQI (0.9%)

VNQI (1.5%)

ST Govt.  Bonds

---------------

DFEVX (3%)

---------------

---------------

---------------

---------------

VGSH (4%)

VGSH (15%)

Int. Term Gvt Bonds

---------------

---------------

---------------

---------------

---------------

---------------

ITE (6.7%)

ITE (25%)

ST Infl. Prot. Bonds

---------------

---------------

---------------

---------------

---------------

---------------

VTIP (2.7%)

VTIP (10%)

Resulting Exp. Ratio

0.14%

0.39% + Mgt

0.21%

0.30%

0.31%

0.24%

0.20%

0.13%

Price-to-Book

1.76

1.48

1.69

1.56

1.6

1.65

1.71

1.83

Avg. Mkt Cap

$10.35B

$8.7B

$8.23B

$8.53B

$2.04B

$1.99B

$3.31B

$9.6B

Proj. EPS Gwth 5yrs

10.71%

10.83%

10.93%

10.36%

12.22%

11.36%

11.06%

10.43%

Yield %

2.31%

1.83%

2.34%

2.38%

2.07%

1.90

1.88%

1.65%

 

 

 

 

 

 

 

 

 

Substitutions for Factor Analysis

VTRIX for VYMI

None

None

None

None

None

VGSH for VTIP

VGSH for VTIP

Market (Rm-Rf)

0.98

0.96

0.96

0.97

0.97

1.03

0.88

0.49

Size (SMB)

0.04

0.00

0.03

0.06

0.35

0.61

0.39

0.07

Value (HML)

0.02

0.05

0.02

0.09

0.04

0.14

0.10

0.02

Momentum (MOM)

-0.04

-0.04

-0.04

-0.07

-0.08

-0.03

-0.01

0.02

Quality (QMJ)

-0.14

0.23

-0.15

-0.12

-0.07

0.11

0.06

-0.01

Annualized Alpha

-1.25%

-0.08%

-0.73%

-0.50%

-0.11%

-0.23

-0.17%

0.23%

Time Period Analyzed

Dec ‘10 -

 Aug ‘17

Dec ‘10  -

 Aug ‘17

Dec ‘10 -

 Aug ‘17

Dec ‘10 -

 Aug ‘17

Dec ‘10 -

Aug ‘17

Dec ‘10 -

Aug ‘17

Dec ‘10 -

Aug ‘17

Dec ‘10 -

Aug ‘17

R^2

92.6%

93.7%

92.7%

93.7%

91.9%

96.2

96.2%

93.9%

CAGR 12/10 - 8/17

10.01%

10.42%

10.40%

10.47%

10.83%

12.26%

10.69%

6.55%

Portfolio Vis. Links

From Morningstar X-Ray Analysis

      Resulting Exp. Ratio:  The average annual expense ratio of the entire portfolio.  Smaller is better.

      Price-to-Book:  The average price/share divided by book-value/share of the companies.  Smaller is better.

      Avg. Mkt Cap:  Average market capitalization (price times shares) of companies in the portfolio.  Smaller is better.

      Proj. EPS Gwth 5yrs:  The projected earnings growth over the next 5 years for the overall portfolio.  Higher is better, but uncertainty is very high, so not the best metric.

      Yield %:  Annual percentage paid out as dividends or bond interest.  Higher is better.

From Portfolio Visualizer Fama-French Factor Regression (using AQR 4-Factor including Quality factor)

      Substitutions used to get more than 5 years of shared history across portfolios.

      Market (Rm-Rf):  Correlation to market-returns minus risk-free returns.  Higher is generally better.  Bonds lower the number.

      Size (SMB):  Correlation to small-minus-big or small premium.  Higher is generally better.

      Value:  Correlation to high-minus-low or the value premium.  Higher is generally better.

      Momentum:  Correlation to up-minus-down or the momentum premium.  Higher is generally better.

      Quality (QMJ):  Correlation to quality-minus-junk premium.  Higher is generally better.

      Time Period Analyzed:  Period for which data is available.  Longer is better.  Yellow = too little history.

      R^2:  Coefficient of determination.  Higher is generally better, but incomplete international data means higher % ex-US equities lowers R^2.

      CAGR based on backtesting at www.portfoliovisualizer.com with annual rebalancing and no management fees.

As you can see, the best-in-class all-equity ETFs are about 0.06% to 0.15% higher in expenses than the cost leader Vanguard, but they provide a lower price-to-book, lower average market cap and broader asset class coverage.  The best-in-class ETF portfolio also compares well to a DFA portfolio except for the value (P/B) and quality (QMJ) metrics where DFA has a clear edge.  The All-Value, All-Small-Cap-Value, and Target Date Portfolio for age 25 Best-in-Class recommendations tilt even more toward small and value.  To see why these might be of interest, I encourage you to look at the 2017 fine tuning tables, and Target Date Portfolio articles. For most investors, the right answer will be a mix of fixed income and equities, and the tuning tables provide a good context for making that choice.

 

Does this mean the Best-in-Class will always outperform? 

 

Does this mean it’s time to abandon DFA in favor of DIY?

 

I think the answer to both questions is “no,” and here’s why..

 

First, as Paul is fond of saying, “you can’t buy the past.”  History is the best teacher we have, but historical patterns can disappear for long periods of time, then reappear suddenly or not at all.  The Best-in-Class ETFs will likely not be the best performing in the short term, but if the academic observations that have held for the past few decades hold into the future, there’s a good chance they will be among the best performers in the long-haul.

 

Even though we can’t buy the past, it’s a good check to see if the portfolios we’ve created performed as expected.  Here’s some back-tested data from www.portfoliovisualizer.com: 

 

Portfolio 1 = Best-in-Class WW UB&H,   Portfolio 2 = All-Value,   Portfolio 3 = TDF @ Age 25

 

The timeframe for the backtest is limited by the newest funds, so it’s hard to judge anything about likely long-term return rates.  What we can see though is higher volatility & bigger gains in good years for the all-value & small-cap tilted age-25 target date portfolios, which fits with expectations of them having higher risks and returns over time.

 

Regarding DFA, asset-class returns are a small part of choosing to work with an advisor.  The primary consideration should be whether you’ll do better working with an advisor or not.  This has more to do with your personal experience, knowledge, temperament, and interest in managing your investments than it does with the DFA funds specifically.  The DFA funds are still superior in many ways, but both the DIY and DFA-Advisor paths can lead to success. Which is best depends mostly on you.

 

I believe the best-in-class recommended portfolios are sound and diverse.  I also know they’ll evolve over time.  This is the first step in that evolution, and it was helped along with input from several of Paul’s listeners.  Please keep the input coming.  It’s much appreciated.

 


 

BEST-IN-CLASS TAX-DEFERRED ULTIMATE BUY & HOLD ETF PORTFOLIOS

Main ETF Recommendation Page

This is the main Vanguard page on ETFs: <NEW LINK REQUIRED>

Schwab Portfolios   Fidelity Portfolios  TD Ameritrade Portfolios  Vanguard

 

ETF

Symbol

Aggressive

Moderate

Conservative

Vanguard S&P 500

VOO

11.2%

6.7%

4.5%

Vanguard Russell 1000 Value Index

VONV

11.3%

6.8%

4.5%

Vanguard S&P Small–Cap 600 Index

VIOO

11.2%

6.7%

4.5%

SPDR® S&P 600 Small Cap Value

SLYV

11.3%

6.8%

4.5%

Vanguard REIT Index

VNQ

5%

3%

2%

Vanguard FTSE Developed Markets

VEA

9%

5.4%

3.6%

iShares MSCI EAFE Value

EFV

9%

5.4%

3.6%

Vanguard FTSE All-Wld ex-US SmCp

VSS

9%

5.4%

3.6%

WisdomTree Intl Small Cap Div (value)

DLS

9%

5.4%

3.6%

Vanguard FTSE Emerging Markets

VWO

4.5%

2.7%

1.8%

SPDR® S&P Emerging Markets Small Cap

EWX

4.5%

2.7%

1.8%

Vanguard Global ex-US REIT

VNQI

5%

3%

2%

Vanguard Short-Term Government Bond

VGSH

0%

12%

18%

SPDR® Blmbg Barclays Interm Term Trs

ITE

0%

20%

30%

Vanguard Short-Term Infl. Prot. Securities

VTIP

0%

8%

12%

 

 

The reason these allocations include tenths of a percent instead of being rounded to single digit percentages is to match the way they show up in Paul’s Motifs at Motif Investing.  In fact, small changes in percentages will have little effect in total portfolio performance.  Feel free to round up or down to simplify when using this for DIY portfolios. 


 

 

BEST-IN-CLASS TAX-DEFERRED ULTIMATE ALL-VALUE ETF PORTFOLIOS

Main ETF Recommendation Page

This is the main Vanguard page on ETFs: <NEW LINK REQUIRED>

Schwab Portfolios   Fidelity Portfolios  TD Ameritrade Portfolios  Vanguard

 

ETF

Symbol

Aggressive

Moderate

Conservative

Vanguard Russell 1000 Value Index

VONV

25%

15%

10%

SPDR® S&P 600 Small Cap Value

SLYV

16%

10%

6%

Vanguard Small-Cap Value

VBR

9%

5%

4%

iShares MSCI EAFE Value

EFV

20%

12%

8%

WisdomTree Intl Small Cap Div (value)

DLS

20%

12%

8%

Vanguard FTSE Emerging Markets

VWO

5%

3%

2%

SPDR® S&P Emerging Markets Small Cap

EWX

5%

3%

2%

Vanguard Short-Term Government Bond

VGSH

0%

12%

18%

SPDR® Blmbg Barclays Interm Term Trs

ITE

0%

20%

30%

Vanguard Short-Term Infl. Prot. Securities

VTIP

0%

8%

12%

 


 

BEST-IN-CLASS TAX-DEFERRED ALL-SMALL-CAP-VALUE ETF PORTFOLIO

Main ETF Recommendation Page

This is the main Vanguard page on ETFs: <NEW LINK REQUIRED>

Schwab Portfolios   Fidelity Portfolios  TD Ameritrade Portfolios  Vanguard

 

ETF

Symbol

 

SPDR® S&P 600 Small Cap Value

SLYV

32.5%

Vanguard Small-Cap Value

VBR

17.5%

WisdomTree Intl Small Cap Div (value)

DLS

30%

Vanguard FTSE Emerging Markets

VWO

10%

SPDR® S&P Emerging Markets Small Cap

EWX

10%

 

Best-in-Class ETFs for Ultimate Buy & Hold Portfolio (Updated November, 2017)

By Chris Pedersen

What’s the best set of ETFs to use if we want to implement Paul Merriman’s Ultimate Buy and Hold Portfolio as a DIY investor?  That’s the question this article aims to address.  The resulting recommendations are available for DIY investors at https://paulmerriman.com/best-in-class-recommended-portfolios/ and in Paul’s various Motifs at www.motifinvesting.com.

To start, we need to define what we mean by “best.”  Obviously, keeping expenses low is a priority, but the Ultimate Buy and Hold Portfolio is based on academic research that says there’s been a higher return in small (low average market capitalization) and value (low price-to-book) equities.  That higher return has come with higher volatility, but by combining several different asset classes that are at least somewhat uncorrelated, or better yet negatively correlated, a higher return per unit of risk is possible.  So, what we’re looking for are representative ETFs for each asset class that tilt towards small and value while keeping expenses as low as possible.

Other attributes matter as well.  Initially, we used eight characteristics to evaluate ETFs:  expense ratio, average market cap, price-to-book, number of stocks, bid-ask spread, turnover, impact on overall portfolio expected returns and yield as reported by Morningstar X-Ray.  Recently, we’ve also considered momentum, quality, tax efficiency plus pros and cons of the underlying indexes.  The expanded analysis led to switching the US small cap value ETF from RZV to SLYV for the tax-deferred Ultimate Buy and Hold portfolio, and using a mix of VBR/SLYV for tax-deferred accounts or VBR/IJS for taxable accounts which hold higher percentages of small-cap-value.  The benefits of the change are lower expenses, more than 5 times as many small-cap-value stocks plus some other improvements with only slightly higher average market size and price-to-book.  Another change is the inclusion of both emerging markets funds in all portfolios for added diversification.  Finally, we’ve added the Merriman Target Date Portfolios to the analysis.  You can see the results for the 50|50 US|WW portfolios and Merriman Target Date Portfolios (which are 70% US) in the table below.

Only equities for tax-deferred accounts are shown.  For taxable accounts, remove REITs, and replace SLYV with IJS due to it’s better tax-efficiency.

 

November 2017 Best-in-Class Recommendation Update

Portfolio Vis. Links Click to See   Click to See   Click to See   Click to See   Click to See   Click to See   Click to See

From Morningstar X-Ray Analysis

  • Resulting Exp. Ratio:  The average annual expense ratio of the entire portfolio.  Smaller is better.
  • Price-to-Book:  The average price/share divided by book-value/share of the companies.  Smaller is better.
  • Avg. Mkt Cap:  Average market capitalization (price times shares) of companies in the portfolio.  Smaller is better.
  • Proj. EPS Gwth 5yrs:  The projected earnings growth over the next 5 years for the overall portfolio.  Higher is better, but uncertainty is very high, so not the best metric.
  • Yield %:  Annual percentage paid out as dividends or bond interest.  Higher is better.

From Portfolio Visualizer Fama-French Factor Regression (using AQR 4-Factor including Quality factor)

  • Substitutions used to get more than 5 years of shared history across portfolios.
  • Market (Rm-Rf):  Correlation to market-returns minus risk-free returns.  Higher is generally better.  Bonds lower the number.
  • Size (SMB):  Correlation to small-minus-big or small premium.  Higher is generally better.
  • Value:  Correlation to high-minus-low or the value premium.  Higher is generally better.
  • Momentum:  Correlation to up-minus-down or the momentum premium.  Higher is generally better.
  • Quality (QMJ):  Correlation to quality-minus-junk premium.  Higher is generally better.
  • Time Period Analyzed:  Period for which data is available.  Longer is better.  Yellow = too little history.
  • R^2:  Coefficient of determination.  Higher is generally better, but incomplete international data means higher % ex-US equities lowers R^2.
  • CAGR based on backtesting at www.portfoliovisualizer.com with annual rebalancing and no management fees.

As you can see, the best-in-class all-equity ETFs are about 0.06% to 0.15% higher in expenses than the cost leader Vanguard, but they provide a lower price-to-book, lower average market cap and broader asset class coverage.  The best-in-class ETF portfolio also compares well to a DFA portfolio except for the value (P/B) and quality (QMJ) metrics where DFA has a clear edge.  The All-Value, All-Small-Cap-Value, and Target Date Portfolio for age 25 Best-in-Class recommendations tilt even more toward small and value.  To see why these might be of interest, I encourage you to look at the 2017 fine tuning tables, and Target Date Portfolio articles. For most investors, the right answer will be a mix of fixed income and equities, and the tuning tables provide a good context for making that choice.

Does this mean the Best-in-Class will always outperform?

Does this mean it’s time to abandon DFA in favor of DIY?

I think the answer to both questions is “no,” and here’s why..

First, as Paul is fond of saying, “you can’t buy the past.”  History is the best teacher we have, but historical patterns can disappear for long periods of time, then reappear suddenly or not at all.  The Best-in-Class ETFs will likely not be the best performing in the short term, but if the academic observations that have held for the past few decades hold into the future, there’s a good chance they will be among the best performers in the long-haul.

Even though we can’t buy the past, it’s a good check to see if the portfolios we’ve created performed as expected.  Here’s some back-tested data from www.portfoliovisualizer.com:

Portfolio 1 = Best-in-Class WW UB&H,   Portfolio 2 = All-Value,   Portfolio 3 = TDF @ Age 25

 

The timeframe for the backtest is limited by the newest funds, so it’s hard to judge anything about likely long-term return rates.  What we can see though is higher volatility & bigger gains in good years for the all-value & small-cap tilted age-25 target date portfolios, which fits with expectations of them having higher risks and returns over time.

Regarding DFA, asset-class returns are a small part of choosing to work with an advisor.  The primary consideration should be whether you’ll do better working with an advisor or not.  This has more to do with your personal experience, knowledge, temperament, and interest in managing your investments than it does with the DFA funds specifically.  The DFA funds are still superior in many ways, but both the DIY and DFA-Advisor paths can lead to success. Which is best depends mostly on you.

I believe the best-in-class recommended portfolios are sound and diverse.  I also know they’ll evolve over time.  This is the first step in that evolution, and it was helped along with input from several of Paul’s listeners.  Please keep the input coming.  It’s much appreciated.

 

BEST-IN-CLASS TAX-DEFERRED ULTIMATE BUY & HOLD ETF PORTFOLIOS

Main ETF Recommendation Page

The basics of the Fidelity ETF program are discussed at https://www.fidelity.com/etfs/ishares

Vanguard Portfolios   Schwab Portfolios   TD Ameritrade Portfolios

 

ETF Symbol Aggressive Moderate Conservative
Vanguard S&P 500 VOO 11.2% 6.7% 4.5%
Vanguard Russell 1000 Value Index VONV 11.3% 6.8% 4.5%
Vanguard S&P Small–Cap 600 Index VIOO 11.2% 6.7% 4.5%
SPDR® S&P 600 Small Cap Value SLYV 11.3% 6.8% 4.5%
Vanguard REIT Index VNQ 5% 3% 2%
Vanguard FTSE Developed Markets VEA 9% 5.4% 3.6%
iShares MSCI EAFE Value EFV 9% 5.4% 3.6%
Vanguard FTSE All-Wld ex-US SmCp VSS 9% 5.4% 3.6%
WisdomTree Intl Small Cap Div (value) DLS 9% 5.4% 3.6%
Vanguard FTSE Emerging Markets VWO 4.5% 2.7% 1.8%
SPDR® S&P Emerging Markets Small Cap EWX 4.5% 2.7% 1.8%
Vanguard Global ex-US REIT VNQI 5% 3% 2%
Vanguard Short-Term Government Bond VGSH 0% 12% 18%
SPDR® Blmbg Barclays Interm Term Trs ITE 0% 20% 30%
Vanguard Short-Term Infl. Prot. Securities VTIP 0% 8% 12%

 

The reason these allocations include tenths of a percent instead of being rounded to single digit percentages is to match the way they show up in Paul’s Motifs at Motif Investing.  In fact, small changes in percentages will have little effect in total portfolio performance.  Feel free to round up or down to simplify when using this for DIY portfolios.

BEST-IN-CLASS TAX-DEFERRED ULTIMATE ALL-VALUE ETF PORTFOLIOS

Main ETF Recommendation Page

The basics of the Fidelity ETF program are discussed at https://www.fidelity.com/etfs/ishares

Vanguard Portfolios   Schwab Portfolios   TD Ameritrade Portfolios

ETF Symbol Aggressive Moderate Conservative
Vanguard Russell 1000 Value Index VONV 25% 15% 10%
SPDR® S&P 600 Small Cap Value SLYV 16% 10% 6%
Vanguard Small-Cap Value VBR 9% 5% 4%
iShares MSCI EAFE Value EFV 20% 12% 8%
WisdomTree Intl Small Cap Div (value) DLS 20% 12% 8%
Vanguard FTSE Emerging Markets VWO 5% 3% 2%
SPDR® S&P Emerging Markets Small Cap EWX 5% 3% 2%
Vanguard Short-Term Government Bond VGSH 0% 12% 18%
SPDR® Blmbg Barclays Interm Term Trs ITE 0% 20% 30%
Vanguard Short-Term Infl. Prot. Securities VTIP 0% 8% 12%

 

BEST-IN-CLASS TAX-DEFERRED ALL-SMALL-CAP-VALUE ETF PORTFOLIO

Main ETF Recommendation Page

The basics of the Fidelity ETF program are discussed at https://www.fidelity.com/etfs/ishares

Vanguard Portfolios   Schwab Portfolios   TD Ameritrade Portfolios

 

ETF Symbol  
SPDR® S&P 600 Small Cap Value SLYV 32.5%
Vanguard Small-Cap Value VBR 17.5%
WisdomTree Intl Small Cap Div (value) DLS 30%
Vanguard FTSE Emerging Markets VWO 10%
SPDR® S&P Emerging Markets Small Cap EWX 10%