Value ETFs Lag Growth, Momentum Counterparts

“Investors also moved about $274 million worth of the iShares S&P 500 Value ETF, or IVE, more than double the average daily turnover in the past year,” according to Bloomberg.

Investors’ dissatisfaction with value ETFs is a scenario worth monitoring.

“The thinking goes that value stocks do best during expansionary phases, when strong corporate profits lift even the most chronically underpriced shares. In the later cycles, investors gravitate toward growth and quality stocks that can gin up profits independent of the economic backdrop,” reports Bloomberg.

The $16.2 billion IVE holds nearly 400 stocks. IVE allocates over 37% of its combined weight to financial services and energy stocks.

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