Looking at the performances of all non-leveraged ETFs in existence since March 10, 2009 or near the start of the current bull market, three value stock ETFs were among the best five performing strategies, with the Guggenheim S&P Smallcap 600 Pure Value ETF (NYSEArca: RZV) generating an average annualized return of 30.4%, Guggenheim S&P 500 Pure Value ETF (NYSEArca: RPV) showing an average 29.5% return and Guggenheim S&P MidCap 400 Pure Value ETF (NYSEArca: RFV) returning 27.7%, according to Morningstar data.
In comparison, the widely observed SPDR S&P 500 ETF (NYSEArca: SPY) had an average 19.0% return over the same period.
RZV targets companies that exhibit the value characteristic but focuses on the smaller companies taken from the S&P SmallCap 600 benchmark. The fund is heavy on industrials 24.5%, consumer discretionary 20.3% and basic materials 12.7%, which may benefit from Trump’s endorsement of the infrastructure sector.
RPV focuses on S&P 500 companies that exhibit the value trait, with a heavy 30.4% emphasis on financials, 13.6% utilities and consumer discretionary 13.6%. While the large tilt toward financials could prove beneficial in a rising rate environment, its large position in the bond-esque utilities sector may weigh on the portfolio ahead.
Lastly, RFV includes value stocks taken from the S&P MidCap 400 Index. The portfolio includes 18.6% industrial, 17.2% materials and 14.1% financials, or sectors that have been outperforming in response to Donald Trump presidency.