BlackRock Bitcoin ETF Drives More Revenue Than Its S&P 500 Fund
The roughly $75 billion iShares Bitcoin Trust ETF (ticker IBIT) has seen a torrent of cash from institutional and retail investors alike, drawing inflows in all but one of the last 18 months. With an expense ratio of 0.25%, the fund brings in an estimated $187.2 million in annual fees, based on back-of-the-envelope math calculated by Bloomberg as of July 1. That slightly edges out the $187.1 million made by BlackRock's iShares Core S&P 500 ETF (IVV), which is nearly nine times larger at around $624 billion in assets, and charges just 0.03%.
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Europe's Gas Binge Leaves Asia in the Cold Again
Europe has accelerated its purchases of liquefied natural gas to refill its storage caverns for the winter, and once again, this has driven prices higher, sapping demand in Asia. This could turn into a seasonal pattern until new LNG capacity comes online—and it will definitely add to Europe's energy cost woes. Natural gas in storage in the European Union is currently at 58.90% of capacity. This time last year, gas in storage was at 75.5% of capacity, per S&P Platts data cited by Reuters' Clyde Russell this week. It needs to reach 90% by November this year, or December, at the latest, per the EU's storage target. This means that European buyers have little choice but to ramp up LNG purchases, whatever the cost—because they have no alternative. The reason, of course, is Europe's deliberate elimination of alternatives such as coal and, in the case of Germany and now Spain, nuclear. This elimination—in the name of a transition to low-emission energy generation—has reduced European countries' flexibility in sourcing their primary energy. So Europeans have been buying lots of LNG, to the tune of some 208.62 million tons over the first six months of the year, which was up by 1.7% from a year ago, Russell reported, citing Kpler figures. The inevitability of LNG purchases means that this will continue no matter what happens. For example, last month, the surge in prices was prompted by the war between Israel and Iran. With Europe still mostly unwilling to commit to long-term contracts, it has made itself vulnerable to such price swings—while Asia sticks with coal that it could fall back on should gas prices soar. In June, spot LNG prices in Asia hit a high of $14 per million British thermal units before retreating to $13.10 in the final week of the month. The war premium had a big role to play in that price jump, but so did consistently high shipments to Europe. Asian importers, meanwhile, reduced their intake in the face of higher prices. But here's the thing. China can afford to buy less LNG because it can ramp up pipeline imports from Russia and Central Asia. Europe does not have the luxury of an alternative supply. Europe, in other words, is stuck with LNG because Norway cannot boost its gas output either as fast or as high as it is necessary if Europe wants an alternative gas supply. It's worth noting, however, that many Asian energy importers have made promises to buy more U.S. liquefied gas specifically in order to avoid the tariff axe that President Trump has been waving at the world. This has limited their wiggle room, as it were, with regard to volumes. With regard to prices, however, long-term deals tend to fetch more stable prices, insulating both buyer and seller from the whims of the spot market. Even with the U.S. LNG purchase commitments, however, India has seen an 8.7% decline in its LNG imports over the first half of the year, suggesting price remains a not inconsiderable issue. China's LNG imports, on the other hand, were down a lot more sharply, by 22%. The tariff war with the United States was certainly a big factor, but Europe's demand may well have played a part as well. With European buyers willing to pay a premium to fill those storage caverns, Chinese gas traders have been happy to resell their LNG cargos, especially those coming from the U.S. and subject to new import tariffs in response to U.S. tariffs. So, chances are that Europe will continue to have to pay a premium to secure its gas reserves for peak demand season. Normally, there would not be a huge problem with that. Right now, however, Europe is spreading itself increasingly thin with spending plans, just as its heavy industries begin to raise the alarm about exorbitant energy costs. Expensive LNG is not going to do anything about these costs, and this means governments will have to step in. This, in turn, means even more spending to keep vital industries such as steelmaking alive. Asia, meanwhile, will continue to drive coal demand globally with its more open approach to energy security, prompted by the fact that most Asian countries cannot afford LNG on a whatever-the-cost basis. The problem, for Europe, is that it can't afford LNG on a whatever-the-cost basis over the long term, either. The EU's gas storage refill bill looks set to be overall higher than last year's. If this winter is as regular as the last one, this would mean an even higher storage refill bill for 2026. This would mean more support for businesses and, likely, households. At some point, wealthy Europe is going to find it's not that wealthy anymore—because of its energy policies. By Irina Slav for More Top Reads From this article on Sign in to access your portfolio
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35 minutes ago
- Yahoo
4 reasons forecasters are bullish on the market's smallest stocks after years of underperformance
Forecasters are growing bullish on small-cap stocks, one of the weakest areas of the market in 2025. The Russell 2000 is down just under 1% this year, underperforming the S&P 500. There are a handful of reasons market pros think bigger returns for small caps are coming. Stock forecasters can't stop talking about the market's smallest and least impressive stocks. They're referring to the small-cap sector, an area of the stock market that strategists have been bullish on, despite underperforming the overall market in recent years. The Russell 2000, which slipped into a bear market over the first half of the year, has recouped most of its losses in recent months. But the index of small-cap US firms is still down about 1% year-to-date, lagging the S&P 500's 5% gain. On a five-year horizon, the Russell 2000 has yielded a 53% return — underwhelming compared to the S&P 500's 98% climb. But there are a few reasons some forecasters remain bullish on the sector. Here's what strategists are saying. There's reason to believe that more small, private companies are gearing up to go public in the near term, according to analysts at Janus Henderson. Small private firms have typically relied on private equity investors to get fresh capital, but many private loans are structured over a 5- to 7-year time horizon, analysts said, and companies will likely be looking for new sources of money once the debt matures. Interest rates are also higher than they were in the past decade, which could make it more challenging to attract private investors, they added. "That's why going public could become a more attractive path for companies needing refinancing or private equity sponsors looking for an exit," analysts said, pointing to the surge in IPOs over the first half of 2025 compared to the prior year. "A reopening IPO market typically benefits the entire small-cap asset class as quality companies tend to go public first and generate positive momentum across the space." Small-cap stocks have historically performed well after bear markets, according to an analysis from Royce Investment Partners. The Russell 2000 fell into a bear market earlier this year, falling 21% from January to April 8, and historically, stocks in the index have seen healthy growth following a trough. In 2020, the Russell 2000 plunged more than 30% peak-to-trough amid the broader coronavirus-fueled sell-off, but value and growth stocks in the index more than doubled in value in the year following the event, according to Francis Gannon, the co-chief investment officer at Royce. Over the last 20 years, small-caps gained an average 60% in the year following a bear market, Gannon added in a note. Valuations in the sector also remain attractive. "We see the small-cap market as fundamentally healthy. The disconnect between large caps and small caps reflects market sentiment rather than underlying business performance," analysts at Janus Henderson said. According to Jill Hall, the head of US small and mid-cap strategy at Bank of America, small-cap stocks should also benefit from a handful of bullish themes unfolding in the broader economy. Here are some of the tailwinds Hall sees: Reshoring. The economy moving more of its manufacturing activity back to the US could be a boon for small public companies. In a note last year, Morgan Stanley estimated that restoring could unlock as much as $10 trillion in value for the US economy over the next decade. Capital expenditures. The US is in the midst of a big capex cycle, which could also benefit small firms, Hall suggested. US private fixed investment clocked in around $4.2 trillion in the first quarter of 2024, according to data from the Bureau of Economic Analysis De-globalization. The US decreasing its reliance on supply chains abroad could also support small domestic firms. "Overall, I do think that over the long-term, there is still greater potential for outperformance of small-caps, given where valuations are, and given some of the multi-year themes," Hall said, speaking to CNBC this week. The Trump administration's push for an America-first economy should also benefit small public firms, according to Peter Kraus, the CEO of the asset manager Aperture Investors. Kraus pointed to the GOP tax and spending bill, which includes proposals like extending Trump's 2017 tax cuts and bigger tax breaks for some businesses and workers. "Congress is going to focus on the domestic economy, and I do think domestically oriented companies, principally mid-cap and small-cap companies, are going to benefit. And they've been the laggards in the last five years," Kraus said, speaking to CNBC on Tuesday. Read the original article on Business Insider Sign in to access your portfolio
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35 minutes ago
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M/I Homes (MHO) Surpasses Market Returns: Some Facts Worth Knowing
In the latest close session, M/I Homes (MHO) was up +1.24% at $118.08. The stock's change was more than the S&P 500's daily gain of 0.48%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.94%. Prior to today's trading, shares of the homebuilder had gained 9.67% outpaced the Construction sector's gain of 6.17% and the S&P 500's gain of 5.13%. The upcoming earnings release of M/I Homes will be of great interest to investors. The company's earnings report is expected on July 23, 2025. The company's earnings per share (EPS) are projected to be $4.43, reflecting a 13.48% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.12 billion, indicating a 0.49% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates are projecting earnings of $17 per share and revenue of $4.36 billion, which would represent changes of -13.75% and -3.29%, respectively, from the prior year. It's also important for investors to be aware of any recent modifications to analyst estimates for M/I Homes. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, M/I Homes possesses a Zacks Rank of #3 (Hold). Looking at valuation, M/I Homes is presently trading at a Forward P/E ratio of 6.86. This indicates a discount in contrast to its industry's Forward P/E of 10.41. The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 212, finds itself in the bottom 15% echelons of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow MHO in the coming trading sessions, be sure to utilize Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report M/I Homes, Inc. (MHO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
