This, however, doesn’t necessarily spell the end for value, which has steadily outperformed growth in the last three years. Despite this, there are some headwinds to consider for value in the forthcoming months, such as declining earnings.
“The earnings picture does not look helpful for value as declines in estimated earnings per share for 2019 and 2020 have been worse than those for growth,” the report notes.
During the market doldrums near the end of 2018, investors were typically better off discarding the growth factor and seeking refuge under an umbrella of value as a defensive play. In 2019, however, there continues to be separate camps of analysts who say value is in vogue while others say the growth party isn’t over just yet.
As such, investors can look to ETF plays like the Direxion Russell 1000 Growth Over Value ETF (NYSEArca: RWGV) and the Direxion Russell 1000 Value Over Growth ETF (NYSEArca: RWVG).
For investors looking for continued upside in growth-oriented equities over value-oriented equities, RWGV offers them the ability to benefit not only from growth opportunities potentially performing well, but from their outperformance compared to value.
Conversely, if investors believe that value-oriented equities will outperform growth-oriented equities, RWVG provides a means to not only see value opportunities perform well, but as a way to capitalize on their outperformance compared to growth.