VLUE “uses the value factor by investing in large- and mid-cap stocks in the United States whose fundamentals make them undervalued compared to other stocks. Those fundamentals include three ratios: price-to-book, price-to-forward earnings and enterprise value-to-cash flow from operations,” according to Investopedia.
Plain vanilla index ETFs that track the value theme has outperformed so far this year, or at least have not done as poorly as broader benchmarks. Nevertheless, potential investors should still look under the hood of these value stock ETFs as no two are created alike and offer varying performances.
For more news and strategy on the Equities ETF market, visit our Equities category.
iShares MSCI USA Value Factor ETF