“David Seaburg, head of equity sales trading at Cowen & Company, agrees that the gap between 2017 value and growth performance could close further. However, he added, this is ‘more because of the positioning in the environment’ as investors look to back away from the crowded growth stocks,” reports CNBC.
Related: Smart Beta ETFs Are Smart Long-Term Investments
With the bull market in U.S. stocks aging, finding sectors that are credible plays is increasingly difficult. Surprisingly, the aforementioned VLUE devotes over 21% of its weight to technology stocks. Financial services and healthcare names combine for 26.7% of that ETF’s weight.
VLUE “seeks 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, before fees and expenses,” according to iShares.
For more on smart beta ETFs, please visit our Smart Beta Channel.