“The IVE value ETF is expected to post earnings growth in fiscal 2018 more than double that of a year earlier as tax cuts fatten up the bottom line. ETF components such as AT&T and Ford have already reported earnings beats,” according to CNBC.
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.
“If you look at the value ETF IVE and you look at the individual stocks in the IVE and the estimates that are being forecasted, it seems like there’s actually tremendous upside for the value ETF even from here,” said Chantico Global CEO Gina Sanchez in an interview with CNBC.
IVE and VLUE have performed slightly less poorly than the S&P 500 this month.
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