|Bid||31.60 x 800|
|Ask||31.70 x 800|
|Day's Range||31.59 - 31.80|
|52 Week Range||27.77 - 34.16|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-2.72%|
|Beta (5Y Monthly)||1.23|
|Expense Ratio (net)||0.59%|
“Chris Watling of London’s Longview Economics shows that value goes through long cycles of two decades or more,” wrote John Authers in Bloomberg. The index is composed of the common stock of typically 20 companies included in the S&P 500 that have been selected through a proprietary ranking system developed by the fund’s index provider, that evaluates the earnings and cash flows of each company to create a final universe of companies that are deeply undervalued as compared to the S&P 500 overall.
As the stock market continues to reach record highs, global investment firm JP Morgan still sees the movement to value-oriented equities from momentum-based equities to run for some time. It's already been going on for four months and could go on for another four or even more, according to JP Morgan. “Currently, we estimate that 42% of potential rotation has been realized,” said J.P. Morgan’s chief U.S. equity strategist, Dubravko Lakos-Bujas.
Although they have fallen off recently due to renewed concerns over the trade war, the major market indices once again rallied to fresh all-time highs, after a solid move higher Monday and Tuesday, as the corporate earnings season began with J.P. Morgan Chase and Citigroup posting stronger-than-forecast quarterly results. J.P. Morgan Chase notched quarterly earnings and revenue that bested analyst predictions, driving the stock more than 1.5% higher. J.P. Morgan additionally showed a marked increase in bond-trading revenues during the fourth quarter.
In a time when market experts are forecasting less upside for stocks in 2020, it makes sense for investors to consider adding the value factor to their portfolios via ETF exposure. Value also has the track record behind it and over time, can provide better returns as opposed to their growth counterparts.
We can judge whether CenturyLink, Inc. (NYSE:CTL) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There's no better way to get these firms' immense resources and analytical capabilities working for us than to follow their lead into their best ideas. […]
Hedge funds are known to underperform the bull markets but that's not because they are bad at investing. Truth be told, most hedge fund managers and other smaller players within this industry are very smart and skilled investors. Of course, they may also make wrong bets in some instances, but no one knows what the […]
The value style may be back in vogue, and investors can gain exposure to this segment of the market through targeted exchange traded funds. For example, the Deep Value ETF (NYSEArca: DVP) increased 6.3%, ...
Rather than just simply focusing on one factor like value, it may serve investors better to capitalize on a multi-factor approach. “If you’re placing a bet on value as a standalone factor, then maybe you’re doing it wrong,” wrote Simon Moore in Forbes.
Smart beta is gaining more traction in the capital markets and in order for that to continue, it will have to be a two-punch combination of lower fees and education that will drive more awareness moving forward. “There are probably several drivers behind increased adoption, but I think the elephant in the room is lower fees,” said Bernie Nelson, chief research advisor at Style Analytics, in Pensions & Investments. Fees, alone, don’t represent the sole driver for smart beta adoption.
Dividend ETFs have staged a rally this year, raising overvaluation concerns. Investors thus can have a look at these low P/E dividend ETFs.
“Early adopters want to do more with their factor allocations, including active and customized approaches and expanding to fixed income. Vincent de Martel, Senior Invesco Investment Solutions Strategist, told ETF Trends that factor investors who interviewed for the study are continuing to utilize factor strategies to a greater extent. “This materializes in the expansion of the opportunity set in equities and increasing demand for fixed income factor solutions,” de Martel said.
There’s been a lot of talk lately in the capital markets that the growth factor is headed towards the exits like they’re favorite baseball team down 10-1 in the final inning. A case-in-point example is in the chart of the Vanguard Growth Index Fund ETF Shares (VUG) . “As you can see below, the price of the fund is trading within an ascending triangle pattern, which is often looked at as a consolidation pattern before making a sharp move higher,” wrote Casey Murphy in Investopedia.
An aging bull market is seeing the value factor drink from the fountain of youth lately. While investors are hopping off the growth and momentum train, the risk-off sentiment is causing them to shift back ...
The tried-and-tested 60-40 asset allocation, 60% in stocks coupled with 40% bonds, has served investors well for years. “Over the past decade that 60/40 [asset allocation] has done a tremendous job. Going forward, however, we believe that the same 60/40 benchmark is going to deliver closer to five percent,” says Phil Camporeale, Investment Specialist in Multi-Asset Solutions at J.P. Morgan Asset Management.
“The U.S. stock market especially is facing its greatest test of the year thus far,” said Macro and quant strategist Masanari Takada. The primary reason for this precipitous drop, according to Takada, is falling market sentiment. In addition, the performance of the market is eerily similar to 2008—once again, when market sentiment was in its doldrums.
The capital markets will certainly be watching the Federal Reserve’s every move and more importantly, every wo rd of Fed Chair Jerome Powell, who has a daunting task of unifying the voices of the central bank, but projecting a tone markets want to hear. Additionally, he’s been feeling the wrath of U.S. President Donald Trump who has been clamoring for more interest rate cuts after the last Fed meeting, which saw a 25-basis point rate snip.
Smart beta exchange-traded funds (ETFs) offer investors a different look as opposed to the run-of-the-mill passive index strategy and with the latest market volatility, investors may want to reconsider adding more value as opposed to growth in their portfolios. The first aspect to touch upon was the limitations of a market cap weighted index, which would then warrant the need for smart beta and factor strategies. Given certain market conditions, investors need more than just a passive index that goes beyond a one-size-fits-all template that uses market cap weighting.