Value stocks are slipping as investors return to the growth style. Investors can also quickly capture broad growth segments of the market through targeted ETF strategies.
Value stock ETFs are experiencing block selling that fueled a surge in trading volumes, report Carolina Wilson and Dani Burger for Bloomberg.
For instance, the Vanguard Value ETF (NYSEArca: VTV) saw $424 million in trades Tuesday, or almost triple its average daily volume over the past year. The iShares MSCI USA Value Factor ETF (NYSEArca: VLUE) also experienced $274 million worth of shares exchanging hands yesterday, more than double the average daily turnover in the past year.
“With the yield curve flattening, signaling lower growth, managers are shifting once again to the uber growth names, like the FANG play” Dave Lutz, head of ETFs at JonesTrading Institutional Services, told Bloomberg, referring to the fast rising tech stocks Facebook Inc., Amazon.com Inc., Netflix Inc. and Google parent Alphabet Inc.
10 Growth-Related ETFs Ideas
Investors may target more cyclical U.S. stocks through growth-oriented ETFs. For instance, the PowerShares QQQ (NasdaqGM: QQQ) tracks the Nasdaq-100 and includes a heavy tilt toward the tech sector, along with a large position in consumer cyclicals.