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.
Related: ETFs That Value Investors Buffett, Munger Would Approve Of
“Although the ETF’s stock-picking methodology is a bit of a black box, it has paid off so far. The fund returned an annualized 8.0% over the past decade through April 29, beating the Russell 1000 Value index by an average of 2.3 percentage points a year. One downside: Annual fees are a relatively steep 0.57%,” said Kiplinger’s of PWV.
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Powershares Dynamic Large Cap Value Portfolio