Although ESG is often associated with growth investing, ESIX is one of the ETFs in this category that credibly offers investors ample value exposure as over 47% of its total weight is allocated to financial services, industrial, and healthcare stocks.
That’s potentially meaningful as 2023 unfolds, not only because of the aforementioned bullish sentiment ascribed to smaller equities, but also because some market observers believe value’s current two-year winning streak against growth will continue this year. ESIX could further by supported by fewer interest rate hikes this year by the Federal Reserve.
“If investors are willing to withstand the coming volatility and are in it for the long haul, Sekera says there are great opportunities in stocks that are undervalued. He specified small-cap stocks, which are trading at the greatest discount relative to their larger counterparts,” according to Business Insider. “One thing to note is that it may take a while before stocks recover. A December 31 note from Morningstar forecasts two more rate hikes coming down the pipeline, both anticipated in the first half of the year. The Federal Reserve is then expected to ease its monetary policy, which would lead to a rebound in the stock market.”
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