Smith-MidlandNASDAQ: SMID

International Small Cap stocks currently offer better valuation compared to US Small-Cap stocks, as indicated by ETF comparisons. GWX ranks last in the Foreign Small/Mid Blend category, earning a Strong Sell rating due to poor relative performance.  DFIS, the top-ranked ETF gets a Buy rating. This article reviews both GWX's and DFIS's current holdings, and then explores the reason why their returns vary so much.

Investors looking to the potential of small- and midcap (SMID) performance in a declining rate environment would do well to consider the Neuberger Berman Small-Mid Cap ETF (NBSM). The actively managed fund offers diversified exposure when compared to the Russell 2500 Index benchmark.

Many investors likely recognize by now the brightened outlook that rate cuts have provided for SMID-cap and midcap equities. That's been borne out by some recent upswings for those categories.

The rate-cut story looks better and better, seemingly by the week. While markets are not in the business of locked-in future predictions, many investor eyes are locked on the potential for cuts.

Increased production and higher sales volumes across multiple product lines aid Smith-Midland's (SMID) earnings in Q2.

Quarterly Revenue Increased 32% to Record $19.5 Million MIDLAND, VA / ACCESSWIRE / August 14, 2024 / Smith-Midland Corporation (NASDAQ:SMID) a provider of innovative, high-quality proprietary and patented precast concrete products and systems today announced its second quarter results for the period ended June 30, 2024. Second Quarter 2024 Summary (compared to prior-year second quarter) Revenue increased 34 percent to $19.6 million Product sales increased 23 percent to $13.1 million Service revenue increased 63 percent to $6.5 million Operating income of $2.7 million, compared to loss of ($981,000) Net income of $2.0 million, or $0.37 per diluted share compared to net loss of ($782,000) or ($0.15) per share Awarded $7.5 million contract from Georgia Department of Transportation Added to Russell 2000 and 3000 stock indexes "Our second quarter performance included a record for quarterly revenue and our best net income since the first quarter of 2021," said Ashley Smith, Chairman and Chief Executive Officer of Smith-Midland.

Small cap stocks experienced a flux of inflows in mid-July as investor rate cut hopes soared. Fidelity offers three actively managed ETFs for investors looking for opportunity in the SMID (small and mid cap) space.

Active ETFs are continuing to grow their share of ETF and active assets this year, contributing significantly to the growth of ETFs overall. Active strategies offer some real synergies with the ETF wrapper, but not all active ETFs are the same.

Investors may want to consider filling any gaps in smid-cap exposure. Many investors may be missing out on the growth potential mid- and small-cap companies.