Being patient and investing for the long term are pearls of wisdom investors hear a lot. Arguably, too much when equity markets are declining, as they have been to start 2016. However, there are instances when investing patience really is investing virtue.
Among exchange traded funds, investors could eventually find that staying the course with the Cambria Global Value ETF (NYSEArca: GVAL) is a strategy that proves rewarding.
GVAL can help investors exploit valuation opportunities in markets outside the U.S. GVAL, launched by Mebane Faber’s Cambria Funds nearly two years ago, invests in about 100 stocks from the world’s most undervalued markets, targeting the cheapest, most liquid picks in countries where political or economic crisis have depressed valuations. [An ETF for Big Global Bargains]
GVAL’s underlying index can include companies from the following countries: Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Luxembourg, Malaysia, Mexico, Morocco, the Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Portugal, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United States, and the United Kingdom.
“The index then screens those attractively priced markets for stocks with market capitalizations of more than $200 million, and whittles the list to 100 stocks based on metrics such as CAPE, dividend payments and cash flow,” reports Gerrard Cowan for the Wall Street Journal.