Zacks Analyst Blog Highlights iShares Core S&P US Value ETF, Vanguard Value ETF, SPDR Portfolio S&P 500 Value ETF, Vanguard Mega Cap Value ETF and iShares Edge MSCI USA Value Factor ETF

For immediate release

Chicago, IL – May 23, 2022 – Zacks.com announces the list of stocks and ETFs featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. ETFs recently featured in the blog include: iShares Core S&P US Value ETF IUSV, Vanguard Value ETF VTV, SPDR Portfolio S&P 500 Value ETF SPYV, Vanguard Mega Cap Value ETF MGV, and iShares Edge MSCI USA Value Factor ETF VLUE.

Here are highlights from Friday’s analyst blog:

5 Value ETFs to Buy Now for Outperformance

Value investing has been all the rage this year as Wall Street struggles to find a solid footing. This is especially true since value stocks offer investors protection against large losses.

As such, value ETFs brought in $37.6 billion in the first four months of the year, following net inflows of $60.3 billion in 2021, according to State Street data. On the other hand, growth ETFs recorded net outflows of $2 billion in the first four months of 2022, partially reversing the positive inflows of $38.2 billion over the whole of last year ( read : 5 ETFs to protect your portfolio in the event of a market sell-off).

While there are many options available in this space, investors could exploit trends with ETFs with a Zacks rank of #1 (strong buy) or #2 (buy). iShares Core S&P US Value ETF, Vanguard Value ETFs, SPDR S&P 500 Value ETF Portfolio, Vanguard Mega Cap Value ETF and iShares Edge MSCI United States Value Factor ETF sound like compelling choices.

Value stocks have strong fundamentals (earnings, dividends, book value and cash flow) and trade below their intrinsic value. These seek to capitalize on market inefficiencies and have the potential to provide higher returns with lower volatility compared to their growth and blended counterparts. Value stocks are less sensitive to market trends and their dividend payouts provide security in times of market turbulence.

Below, we discuss some good reasons to invest in value ETFs.

Market uncertainty caused by soaring inflation, aggressive Fed rate hikes and Russia’s invasion of Ukraine have increased the appeal of value investing (read : Best ETFs for High Inflation and Rising Rates).

Growth stocks became too expensive after a 10-year super cycle, forcing investors to dump them at the end of the low interest rate era. The Federal Reserve began raising interest rates more aggressively to fight inflation. Fed Chairman Jerome Powell raised interest rates by 50 basis points at the last FOMC meeting and signaled that it would continue to rise at the same pace in the next two meetings. This is the biggest increase in interest rates since 2000.

Higher yields indicate optimism in the economy supported by increased consumer confidence, rising wages and higher spending. This combination of factors will result in increased industrial activity and a recovery in consumer demand, thereby increasing value stocks. Additionally, the ongoing Russian-Ukrainian war has raised fears of supply disruptions in an already tight commodity market, which has amplified inflation concerns.

Additionally, the data shows that the value index outperformed the growth index as inflation and rates rose. Value stocks are seeing a reversal of fortunes with central banks tightening policies to contain inflation after 10 years of underperformance.

iShares Core S&P US Value ETF

iShares Core S&P US Value ETF provides exposure to large and mid cap US stocks that exhibit value characteristics by tracking the S&P 900 Value Index. He has 742 shares in his basket, each representing no more than a 3.1% share. iShares Core S&P US Value ETF is broadly spread across the healthcare, financials, industrials, information technology and consumer staples sectors each holding double-digit exposure (read: 5 safe investment areas and their ETFs to escape the market rout).

iShares Core S&P US Value ETF has $11.7 billion in assets under management and trades in an average daily volume of 643,000 shares. It charges 4 basis points in annual fees and has a #1 Zacks ETF rating with a medium risk outlook.

Vanguard Value ETFs

Vanguard Value ETF targets the value segment of the broad US stock market and tracks the CRSP US Large Cap Value Index. The product holds 349 stocks in its basket, each representing no more than 3.3% of assets.

Vanguard Value ETF has an AUM of $100.8 billion and charges 4 basis points in annual fees. The product trades in volume of 4 million shares per day on average and has a Zacks ETF #1 rating with a medium risk outlook.

SPDR S&P 500 Value ETF Portfolio

SPDR Portfolio S&P 500 Value ETF tracks the S&P 500 Value Index, charging investors 4 basis points in annual fees. He has 447 stocks in his basket, each representing no more than 3.2% of assets. Healthcare, financials, industrials, information technology and consumer staples are the top five sectors with double-digit exposure each (read: An ETF retirement portfolio for 2022).

SPDR Portfolio S&P 500 Value ETF has amassed $13.2 billion in its asset base and sees average daily volume of 3.5 million shares. It charges 4 basis points in annual fees and has a #1 Zacks ETF rating with a medium risk outlook.

Vanguard Mega Cap Value ETF

The Vanguard Mega Cap Value ETF tracks the CRSP US Mega Cap Value Index, which measures the performance of the largest value stocks in the US market. He has 148 stocks in his basket, each representing less than 4% of assets. Healthcare, financials, industrials and consumer staples are the top four sectors with double-digit exposure each.

Vanguard Mid-Cap Value ETF has raised $6 billion and trades in an average daily volume of 381,000 shares. It charges 7 basis points in fees per year and has a Zacks ETF Rank #1.

iShares Edge MSCI United States Value Factor ETF

iShares Edge MSCI USA Value Factor ETF provides exposure to large and mid-cap US stocks at lower fundamental-based valuations and tracks the MSCI USA Enhanced Value Index. He has 149 stocks in his basket, each representing less than 6.6% of assets. Information technology occupies the largest share with 28.8%, while health, communication and finance complete the next three.

iShares Edge MSCI USA Value Factor ETF has amassed $11.5 billion in its asset base and charges 15 basis points in annual fees. It trades in an average daily volume of 1.4 million shares and has a Zacks rank of No. 2.

Want key ETF information delivered straight to your inbox?

Zacks’ free fund newsletter will update you weekly on top news and analysis, as well as the top performing ETFs.

Get it for free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

https://www.zacks.com

Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. To visit https://www.zacks.com/performance for more information on the performance figures 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

Vanguard Value ETF (VTV): ETF Research Reports

iShares MSCI USA Value Factor ETF (VLUE): ETF Research Reports

iShares Core S&P US Value ETF (IUSV): ETF Research Reports

SPDR S&P 500 Value ETF Portfolio (SPYV): ETF Research Reports

Vanguard Mega Cap Value ETF (MGV): ETF Research Reports

To read this article on Zacks.com, click here.

Zacks Investment Research


Source link