“Over the more recent three-year period, the flattening yield curve has weighed on value’s performance relative to the broader market—exuding an 88% correlation to the spread between the 10- and 2-year yield, an uptick over the average for the last 10 years,” said State Street.
SPYV holds 380 stocks and charges just 0.04% per year, or $4 on a $10,000 investment, making it one of the cheapest value ETFs on the market.
“Regardless of market shifts, as other styles (e.g. momentum, size) can underperform based on market trends as well, the long-term evidence of the value premium is hard to argue with, given top decile book-to-market stocks 2% annualized excess return relative to the markets return since 1926,” according to State Street.
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