Now’s a Good Time to Give Value Investing a Closer Look

With the Dow Jones Industrial Average looking at bear market territory dead in the eye following another 1,000-point drop in Wednesday’s trading session, it served as another reminder to investors that value investing could use a closer look.

“Value investors will tell you that the best time to buy stocks is when there’s blood in the streets,” wrote Chuck Saletta in Motley Fool. “When the market is so overrun with panic that it offers discounts on strong businesses, that’s when the smartest value investors swoop in to buy.”

Here are a few funds that tilt towards value that investors should put on their watch lists:

1. WisdomTree U.S. SmallCap Dividend Fund (NYSEArca: DES): seeks to track the price and yield performance, before fees and expenses, of the WisdomTree U.S. SmallCap Dividend Index. The index is a fundamentally weighted index measuring the performance of the small-capitalization segment of the U.S. dividend-paying market.
2. WisdomTree U.S. MidCap Dividend Fund (NYSEArca: DON): seeks to track the price and yield performance, before fees and expenses, of the WisdomTree U.S. MidCap Dividend Index. The index is a fundamentally weighted index that is comprised of the mid-capitalization segment of the U.S. dividend-paying market.
3. WisdomTree U.S. LargeCap Dividend Fund (NYSEArca: DLN): seeks to track the price and yield performance, before fees and expenses, of the WisdomTree U.S. LargeCap Dividend Index. The index is a fundamentally weighted index that is comprised of the large-capitalization segment of the U.S. dividend-paying market.

^MSACWIV data by YCharts

An International Quality Option

Value investing guru and billionaire investor Charlie Munger fielded questions from shareholders of the Daily Journal, where Munger serves as the corporation’s chairman, on topics that included value investing. On the topic of value investing, Munger reminded shareholders that whether you’re a proponent of growth, momentum or other factors, value investing is inherent in all investing.

“Basically, all investment is value investment in the sense that you’re always trying to get better prospects that you’re paying for,” Munger said. “But you can’t look everywhere at once. Just any more than you could run a marathon in 12 states at once. And so you have to have some system of thinking someplace to look which is your hunting ground. But you’re looking for value in every case…I think the strongest companies are not in America. I think Chinese companies are stronger than ours, growing faster.”

For investors looking for international exposure, a fund to look at is the WisdomTree International Equity Fund (NSYEArca: DWM). DWM seeks to track the price and yield performance of the WisdomTree International Equity Index, which is a fundamentally weighted index that is comprised of companies in the industrialized world, excluding Canada and the United States, that pay regular cash dividends.

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