Value stocks typically trade at cheaper prices relative to fundamental measures of value, such as earnings and the book value of assets. In contrast, growth stocks tend to run at higher valuations since investors expect the rapid growth in those company measures.
Financial services stocks, one sector that is widely viewed as attractively valued, account for 29.6% of CZA’s roster. The utilities and industrial sectors combine for almost 32% while CZA sports lower allocations to consumer staples and healthcare, sectors that are not currently viewed as inexpensive.
CZA has $197.1 million in assets under management and charges 0.65% per year, or $65 on a $10,000 investment. The ETF has a five-star rating from Morningstar.
For more information on mid-caps, visit our mid-cap category.