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3 ETFs to Invest in Cheapest Value Stocks

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Value stocks are outperforming growth stocks by the largest margin in two decades, per WSJ, as investors expect the economy to rebound strongly later this year, thanks to accelerating vaccine rollout and a large fiscal stimulus.

Value stocks are more sensitive to economic swings than growth stocks. Investors have poured more than $18 billion this year into about 80 value ETFs, per Bloomberg data. These ETFs hold stocks with attractive valuations.

Further, growth stocks benefitted from stay-at-home trend last year and some look expensive now, so investors are betting on cheaper stocks, particularly in financials, industrials and energy sectors.

The Vanguard Russell 1000 Value ETF (VONV - Free Report) has risen about 31% over the past six months, double the return of the Vanguard Russell 1000 Growth Index (VONG). However, over the past 10 pears, VONG is up about 380% whereas VONV has returned 194%, as growth stocks significantly outperformed value stocks throughout much of the past decade.

The Invesco S&P SmallCap 600 Pure Value ETF (RZV - Free Report) invests in 142 stocks with strongest value in the S&P SmallCap 600 Index.

The Roundhill Acquirers Deep Value ETF (DEEP - Free Report) selects deeply undervalued small-and-micro cap stocks using the Acquirers Multiple, the measure used by activists and buyout firms to identify targets.

The iShares Focused Value Factor ETF (FOVL - Free Report) holds 40 U.S. large and mid-cap companies with prominent value characteristics.

Please watch the short video above to learn more about these ETFs.

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