The iShares MSCI USA Value Factor ETF (NYSEArca: VLUE) is another growing value ETF and like many value ETFs, VLUE features large allocations to the energy and financial services sectors.
Value investing is a popular long-term investment strategy. Value stocks have historically outperformed growth stocks, or companies with high earnings expectations, in almost every market over the long-haul. For instance, the MSCI USA Value Index has outperformed the MSCI USA Growth Index by an annualized 81 basis points since 1974 through September 2015.
“A few stock-specific factors are generating the performance disparity as well. The most heavily weighted stock in the S&P 500 growth index is struggling Apple, while the biggest in the value counterpart is ExxonMobil, which has shone in 2016 amid oil’s bounce,” adds CNBC.
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iShares MSCI USA Value Factor ETF