Author Archives: Scalper1

Google Update Boosts Ranking Signal For Mobile-Friendly Web Pages

Alphabet ( GOOGL ) unit Google said Wednesday that it is launching an update to mobile search results to help users find more mobile-friendly Web pages. “Getting good, relevant answers when you search shouldn’t depend on what device you’re using. You should get the best answer possible, whether you’re on a phone, desktop or tablet,” the company said in a blog post . Last year, the company said it would use “mobile-friendliness as a ranking signal on mobile searches.” Beginning in May, Google said, “we’ll start rolling out an update to mobile search results that increases the effect of the ranking signal to help our users find even more pages that are relevant and mobile-friendly.” The company said the goal of the upgrade was to “help our users find even more pages that are relevant and mobile-friendly,” although Google didn’t specify how much of an impact it expects the change to have. Sites that area already deemed mobile-friendly will not be impacted by the update. In November 2014, Google started labeling sites as “mobile friendly” to indicate which pages were size optimized to be read on smaller screens. Then, in February 2015, Google announced plans to roll out mobile ranking changes on April 21. A Web page is eligible to wear the “mobile-friendly” label if it avoids software such as Flash that is not common on mobile devices and uses text that is readable without zooming. Mobile-friendly sites also place links far enough apart so a user’s finger can easily tap the correct one. Google started using the label as a ranking factor worldwide in April. Google’s Mobilegeddon — its rollout of major changes to its search algorithm last April 2015 giving priority to mobile-friendly websites that adjust the look of a Web page on smaller screens — likely had a modest impact on advertising, analysts said. Google offers a Webmaster Mobile Guide with more details for web developers. Look for Google’s mobile-friendly test tool here . The search leader faces tougher competition from U.S.-based rivals led by Facebook ( FB ) and foreign stalwarts such as China search leader Baidu ( BIDU ) .

Google Discloses Traffic Encryption Frequency to be 77%

As part of its efforts toward online traffic encryption, Alphabet Inc.GOOGL , formerly known as Google Inc., has disclosed the extent to which the traffic to its search engine and other services are being encrypted. According to the company

VBK: The Benefits Of Small-Cap Growth Stocks

By Jonathan Jones and Tom Lydon Stock-picking is difficult and plenty of data support that assertion. It can be said that the task is even more difficult with smaller stocks, explaining why so many active managers of small-cap funds lag their benchmarks. Over the one-year period, mid- and small-cap growth funds were especially poor performers, according to industry analyst ETF Trends . For instance, only 20% of all mid-cap growth funds outperformed the S&P MidCap 400 Growth Index, and investors paid an average 1.3% fee on mid-cap growth funds for the that underperformance as well. In comparison, mid-cap ETFs have an average expense ratio of 0.42%, according to XTF data. “On an equal-weighted basis, the average mid-cap growth fund returned -1.23% and lagged by 328 basis points in 2015, much higher than the expense ratio incurred,” Rosenbluth said. “This suggests to us that unwarranted stock selections contributed to underperformance.” Additionally, just 12% of all small-cap growth funds outperformed the S&P SmallCap 600 Index. Funds that track larger companies fared slightly better, with 51% of all large-cap growth funds outperforming the S&P 500 Growth index. The Vanguard Small-Cap Growth ETF (NYSEArca: VBK ) is a cost-effective option for investors looking for a passive approach to small-cap growth stocks. Compared to an actively managed small-cap fund, VBK is cheap. Well, compared to almost any fund, VBK is cheap as it charges just 0.09% per year, or $9 for every $10,000 invested. That is less expensive than 93% of rival funds, according to Vanguard . The $3.9 billion ETF holds over 700 stocks, nearly 22% of which are financial services names. Industrials and technology stocks combine for over 34% of VBK’s weight. VBK follows the CRSP US Small Cap Growth Index. “CRSP classifies growth securities using the following factors: future long-term growth in earnings per share (EPS), future short-term growth in EPS, 3-year historical growth in EPS, 3-year historical growth in sales per share, current investment-to-assets ratio, and return on assets,” according to a Seeking Alpha analysis of VBK. Cyclical stocks, like materials, industrials, energy and technology companies, are more economically sensitive and do well when the economy is improving. With the Federal Reserve set to hike rates, the rising rate environment would signal a better economic outlook. Cyclical sectors, which are heavily represented in VBK, currently trade at a discount to the broader market. In addition to its large combined weight to industrial and technology stocks, consumer discretionary names command over 15.5% of VBK’s weight. Vanguard Small-Cap Growth ETF Click to enlarge Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.