The Latest News:
- With the repudiation of the momentum trade, value stocks and exchange traded funds are attracting more attention. [Very Valuable Value ETFs]
- “It is not surprising that sentiment is shifting away from some of the growth segments of the market,” writes Russ Koesterich, Managing Director, BlackRock Global Chief Investment Strategist. “Valuations for these industries are starting to appear stretched (particularly for biotech and social media companies), and investors are starting to seek better opportunities elsewhere—specifically in some of the more value-oriented areas.”
- As growth stocks falter, value investments and related exchange traded funds are beginning to pick up the slack, and the momentum trade-off could continue. [Value ETF Investments Still Have Room to Run]
- Value tends to continue its advantage over growth following strong value rallies,” Morgan Stanley strategist Adam Parker said in a note. “The value outperformance continues for 11 months following the value rally…Thus, the expectation that many investors we talked to last week have of a growth rebound following a run-up in value stocks is not borne out by history.”
- In the recent turn, growth stocks like technology and healthcare names have sold off while value companies in consumer staples and energy sectors could begin to lead the markets, Parker said.
Vanguard Mega Cap Value ETF
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.