Investors should look beyond the most popular, large cap stock funds next year, but that doesn't mean they have to get too defensive, according to Astoria Portfolio Advisors. John Davi, Astoria's CEO and chief investment officer, told CNBC that the huge amount of cash that has flowed into index funds tracking the S & P 500 this year is a sign that investors should in fact look elsewhere in the stock market to get more bang for their buck.
is up about 20% year to date, while DGRS has gained about 18%. Part of the shift to small caps is born of an argument that the large cap indexes and some of the biggest tech stocks look expensive, leaving some companies outside that group more compelling values. "There are actually a lot of companies that are growing faster than the Mag 7," Davi said. The impact of Donald Trump's election is also evident on the list.
mountain Bank stocks have outperformed the broader market in November. However, the AltShares fund is little changed on the month and is a small ETF, with less than $100 million in assets. The fund, which effectively bets that announced merger deals will close in order to collect the "arbitrage" spread between the offer price and the target's current price, could grow in popularity if the change in administration ushers in a flurry of dealmaking.