Mutual fund managers allocate too much capital to low-quality stocks and Small Cap Blend ETFs hold poor quality stocks.

Stock Buybacks & ETFs, ETFs with Low Price-to-Sales Ratios, ETFs and Mergers & Acquisitions, Small Cap ETFs, Large Cap ETFs, Gold ETFs, Gold Miners ETFs

The 30 companies that comprise the Dow Jones Industrials collectively failed to increase sales in 2013. Yet the price of the Dow surged more than 25%.

The Small Cap Value style ranks twelfth out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report. It gets my Dangerous rating, which is based on aggregation of ratings of 15 ETFs and 262 mutual funds in the Small Cap Value style as of April 23, 2014.

Out of the twelve fund styles I detailed in my Style Rankings for ETFs and Mutual Funds report, the Small Cap Value style ranks last. It gets my Dangerous rating. Here's why...