With a sluggish market, investors seem to be losing interest in high flying sectors like biotechnology and social media. Instead, they seem to be once again zeroing in on value investing as a key pillar of portfolios, especially considering the heightened volatility as of late (see 2 Recession Proof Sector ETFs for This Stormy Market).
This is particularly true for those in it for the long haul, as value stocks have delivered higher returns with lower volatility levels than their growth oriented cousins when looking at lengthy time periods. Fortunately for investors out there though, there are a number of value ETFs that can give diversified exposure to stocks that have lower PEs and solid fundamentals in general.
How to Play
There are certainly a number of options out there in the value ETF world, so investors might be best served by focusing on low cost products. These cheaper funds can really see those extra basis points add up over the years, and lead to some extra outperformance for long term investors (see 5 Long Term ETF Buys for Your Roth IRA Contribution).
Two funds to watch in this space are the Schwab U.S. Large Cap Value ETF (SCHV) and the Vanguard Value ETF (VTV). Both of these ETFs have an expense ratio of 10 basis points or less, plus they have Zacks ETF Ranks of ‘Buy’ suggesting that they are poised to outperform their peers as well.
For additional insight on these funds and the trends which are favoring value investing right now, make sure to watch our short video on the subject below:
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Read the analyst report on SCHV
Read the analyst report on VTV
Zacks Investment Research
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