Investors seeking targeted value plays may consider a popular value ETFs like the iShares MSCI USA Value Factor ETF (NYSEArca: VLUE). VLUE tries to track the performance of an index that measures the performance of U.S. large- and mid-capitalization stocks with value characteristics and relatively lower valuations. Specifically, the value weighting of each security is determined using three variables, including price-to-book value, price-to-forward earnings and enterprise value-to-cash flow from operations.
VLUE’s top sector weights include information technology 24.0%, financials 14.1%, health care 13.3%, consumer discretionary 12.7% and industrials 9.5%. Top components include Apple 10.1%, Walmart 4.2%, General Motors 4.0%, Intel Corp 3.7% and Pfizer 3.4%.
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