The recent out-performance in value-oriented stocks has put renewed focus on the asset category after the growth style took center stage in recent years, but value equities and related exchange traded funds have proven to enhance returns over the long run as well.
The value factor experienced some rough times during the heyday of the ongoing bull market as growth and momentum factors overshadowed the value style. With investors embracing safety this year, value stocks and the corresponding ETFs are making a comeback.
Investors who believe that value investments may just be the current flavor of the day should keep in mind that value investing is a popular long-term investment strategy.
Well-know value ETFs include the iShares S&P 500 Value ETF (NYSEArca: IVE) and the iShares MSCI USA Value Factor ETF (NYSEArca: VLUE).
VLUE “seeks to track the performance of an index that measures the performance of U.S. large- and mid-capitalization stocks with value characteristics and relatively lower valuations, before fees and expenses,” according to iShares.