|Bid||0.00 x 800|
|Ask||125.47 x 900|
|Day's Range||125.27 - 125.86|
|52 Week Range||104.07 - 129.82|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.94|
|Expense Ratio (net)||0.20%|
Growth stocks and the related exchange traded funds took their lumps in May, but year to date, the iShares Russell 1000 Growth ETF (NYSE: IWF) is higher by 18.40 percent, an advantage of 530 basis points over the iShares Russell 1000 Value ETF (NYSE: IWD). Growth stocks, including those residing in ETFs like IWF, usually command higher multiples than value equivalents or the broader market.
Value investing seek to capitalize on inefficiencies in the market and have the potential to deliver higher returns with lower volatility compared with growth and blend counterparts.
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.
Markets opened the second quarter of 2019 on an upbeat mood thanks to progress in trade talks, manufacturing revival in the United States and China, and hopes of a soft Brexit.
Wall Street should start April on a solid note though pockets of volatility will remain. Against this backdrop, investors can pick these ETFs.
Real bargains lie in the value spectrum of the market. Given the host of uncertainty in the broader market, investors can buy these top-ranked value ETFs and stocks.