The Zacks Analyst Blog Highlights VAMO, DVLU, XMVM, DDIV and SPVM
For Immediate Release
Chicago, IL – August 12, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Cambria Value & Momentum ETF VAMO, First Trust Dorsey Wright Momentum & Value ETF DVLU, Invesco S&P MidCap Value with Momentum ETF XMVM, First Trust Dorsey Wright Momentum & Dividend ETF DDIV and Invesco S&P 500 Value with Momentum ETF SPVM.
Here are highlights from Thursday’s Analyst Blog:
5 Momentum ETFs That Offer Value
Wall Street has been in decent shape in recent weeks on strong corporate earnings reports, slower-than-expected future Fed rate hikes and a bet that markets have reached a bottom. Stocks in the United States and Europe had their biggest monthly increase since November 2020 (read: Stocks' Best Month Since 2020: Top ETF Areas of July).
Investors' hope that slowing inflation and slowing growth may keep the Fed to ease plans to push up interest rates boosted equities throughout the month. Cheaper valuation after a downbeat first-half also aided equities.
The S&P 500, the Dow Jones, the Nasdaq Composite and the Russell 2000 added 8%, 5.6%, 11.4% and 9.1%, respectively in July (as of Jul 29, 2022). Some earnings came in upbeat to close out the month. Amazon.com Inc. and Apple Inc. both beat revenues estimates. In July, Amazon shares gained 27%, marking their biggest monthly rally since October 2009.
The rally in Wall Street came despite 41-year high inflation, GDP contraction for the second-straight quarter and yet another Fed rate hike worth 0.75%. Against this backdrop, investors can rely on high momentum investing. While the past movement of the price of a stock cannot be used to predict its future movement, history shows that recent past performance can be a pretty good predictor of short-term future performance.
The momentum effect, which refers to the tendency of winning stocks to keep winning, has been documented in many academic studies. Enthusiastic investors love to bet bigger on high fliers, even ignoring fundamentals at times. With investors' optimism at its peak, we would like to note that the following momentum ETFs maybe tapped now.
Momentum investing might be an intriguing idea for those seeking higher returns in a short spell. It looks to reflect profits from buying stocks that are sizzling on the market. But looking at value is necessary now, given still-present inflationary threats.
Below we highlight a few momentum ETFs that have a P/E below 21.70 times of SPDR S&P 500 ETF Trust.
ETFs in Focus
Cambria Value & Momentum ETF – P/E 8.01X
This ETF is active and does not track a benchmark. The Cambria Value and Momentum ETF seeks to preserve and grow capital from investments in the U.S. equity markets by investing in 100 stocks with market caps greater than US $200 million. The fund charges 64 bps in fees.
First Trust Dorsey Wright Momentum & Value ETF – P/E 9.06X
The underlying Dorsey Wright Momentum Plus Value Index tracks the overall performance of the 50 most undervalued stocks within the NASDAQ US Large Mid Cap Index that maintain high levels of relative strength. The fund charges 60 bps in fees.
Invesco S&P MidCap Value with Momentum ETF – P/E 10.77X
The underlying S&P MidCap 400 High Momentum Value Index is composed of securities with strong value characteristics selected from the Russell Midcap Index. The fund charges 39 bps in fees.
First Trust Dorsey Wright Momentum & Dividend ETF – P/E 12.55X
The underlying Dorsey Wright Momentum Plus Dividend Yield Index is designed to track the overall performance of the 50 stocks with the highest dividend yield comprising the NASDAQ US Large Mid Index that still maintain high levels of relative strength. The fund charges 60 bps in fees.
Invesco S&P 500 Value with Momentum ETF – P/E 13.11X
The underlying S&P 500 High Momentum Value Index is composed of securities with strong value characteristics selected from the Russell Top 200 Index. The fund charges 39 bps in fees.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Cambria Value and Momentum ETF (VAMO): ETF Research Reports
Invesco S&P 500 Value with Momentum ETF (SPVM): ETF Research Reports
First Trust Dorsey Wright Momentum & Dividend ETF (DDIV): ETF Research Reports
First Trust Dorsey Wright Momentum & Value ETF (DVLU): ETF Research Reports
Invesco S&P MidCap Value with Momentum ETF (XMVM): ETF Research Reports
To read this article on Zacks.com click here.
