Value has recently retreated and that theme could continue over the near-term as the energy and financial services sectors, frequently the two largest sector allocations in many value ETFs, historically lag in November.
“Value stocks tend to be those trading at discounted prices relative to earnings while growth stocks are often higher priced and faster growing. Many folks argue that the proximity of the market cycle has much to do with determining which style is en vogue at a given time. Specifically, growth stocks theoretically fare better during bull markets and value provides better protection in bear markets. We have actually found that the favored style has more to do with the behavior of the underlying sectors than it does the overall market cycle,” according to See It Market.
As is the case with so many Vanguard ETFs, VTV has gained a following due to its paltry expense ratio. VTV charges just 0.09% per year, making it less than expensive than 92% of competing funds, according to issuer data.
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Vanguard Value ETF