“For investors who want to position themselves to capture the potential upside after an inflection point in the cycle, we believe three sectors could be attractive targets: Financials, Resources and Industrials,” according to State Street.

Industrial and energy names combine for 18% of SPYV’s roster. SPYV charges just 0.04% per year, or $4 on a $10,000 investment, making it one of the cheapest value ETFs on the market.

“Value investing is never an easy ride, but that is how investors earn the risk premia they are paid over the long term. This style requires patience and a long-term perspective,” notes State Street.

For more on smart beta ETFs, visit our Smart Beta Channel.

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