|Bid||115.63 x 800|
|Ask||118.49 x 2200|
|Day's Range||115.79 - 116.70|
|52 Week Range||94.72 - 118.81|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.97|
|Expense Ratio (net)||0.18%|
A version of this article appeared in the March 2019 issue of Morningstar ETFInvestor. The concept of value investing dates back at least as far as the 1920s, when Benjamin Graham and David Dodd first began teaching finance at Columbia University. The fundamental principles of value investing were later enshrined in the duo's classic “Security Analysis,” first published in 1934. The idea is painfully simple: Buy securities at prices below their intrinsic value and wait patiently for their market price to reflect their true worth.
The iShares S&P 500 Value ETF (IVE) , one of the largest exchange traded funds dedicated to value stocks, posted an admirable first-quarter gain of more than 11%. “Immediately after the Fed’s announcement, value stocks—the market’s cheapest—were crushed,” reports Evie Liu for Barron's. “The valuation spread between the market’s cheapest stocks and the most expensive ones has risen to the widest level in the past 70 years.
Value ETFs seek to capitalize on inefficiencies in the market and have the potential to deliver higher returns with lower volatility.
Sector exposures always matter with equity-based exchange traded funds and that is particularly true of factor-driven strategies, such as growth and value. Factor ETFs typically feature different sector ...
Needless to say, October hasn't been kind to U.S. stocks as the technology sector, in particular, has been getting trounced with the S&P 500 following the Nasdaq Composite into correction territory last week before pulling itself out in Tuesday morning's trading session.
Value stocks and the related ETFs could be valid ideas for those looking to avoid additional market turbulence. Conventional wisdom dictates that, over the long-term, value stocks outperform. Well, the length of the current bull market in U.S. stocks qualifies as “long-term,” and for much of this move higher, value stocks have been trailing their growth counterparts.
Value investing has long been associated with excess rates of return. Generally speaking, a value-oriented approach involves buying stocks that are cheap according to some measure of intrinsic value in hopes that they will one day appreciate to their fair value. Patience is a requirement, and the past decade has tested the strongest advocates of value investing.
Conventional wisdom dictates that, over the long-term, value stocks outperform. Well, the length of the current bull market in U.S. stocks qualifies as “long-term,” and for much of this move higher, value stocks have been trailing their growth counterparts. The iShares S&P 500 Value ETF (IVE) is higher by less than 1% while the S&P 500 is higher by more than 6%.
There were ample expectations for the opposite to be true heading into 2018, but value exchange traded funds continue lagging their growth and momentum counterparts this year. That could be an ominous ...