When it comes to stocks and exchange traded funds (ETFs), which is more pursued, the growth or the value?

During the late 1990s, it was all about growth. Leading into the turn of the century, the market was focused on value. Now, the cycle seems to be turning toward growth again. Growth companies have earnings and revenue that rise fast, whereas value companies are fairly cheap, reports Joanne Von Alroth of Investor’s Business Daily. It seems as if a certain growth/value rotation is becoming more defined, much like the large-cap/small-cap cycle.

There are several ETFs that focus on growth and value.  For example, there is the iShares Russell 2000 Growth (IWO), which is up 13% year-to-date. iShares Russell 2000 Value (IWN) is up 5% for the year.

Growth_etfs_2

For full disclosure, some of Tom Lydon’s clients own IWN.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.