“The $890-million fund also boasts an affordable expense ratio of .35 percent. In the fund’s rebalancing in December financial and utilities were trimmed back, thanks to their recent runups, while consumer discretionary stocks were boosted,” according to Reuters. “A word of caution for value-minded investors: Such deep-value and pure-value screens tend to make holdings more limited, and therefore more volatile, than broader market indices.”
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.
RPV allocates over 28% of its weight to financial services stocks and over 20% to the consumer discretionary sector. Energy and healthcare names combine for about 22%.
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