Value stocks have historically outperformed growth stocks, or companies with high earnings expectations, in almost every market over the long-haul. For instance, the MSCI USA Value Index has outperformed the MSCI USA Growth Index by an annualized 81 basis points since 1974 through September 2015.

Related: Why Growth Factor is Performing for Smart Beta ETFs

Value stocks usually trade at lower prices relative to fundamental measures of value, like earnings and the book value of assets. On the other hand, growth-oriented stocks tend to run at higher valuations since investors expect the rapid growth in those company measures, but more are growing wary of high valuations, especially as the U.S. equities market moves toward the ninth year of an extended bull run.

FVAL’s top 10 holdings combine for 22.7% of the ETF’s weight and the ETF sports a price-to-earnings ratio of 16.3, according to issuer data, putting it below the S&P 500 on that metric. The annual fee on FVAL is 0.29%, or $29 on a $10,000 investment, which is reasonable among smart beta strategies.

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Tom Lydon’s clients own shares of Apple, Alphabet and Microsoft.