Are Value Managers Measuring the Wrong Thing?
Value investing is an important part of a diversified portfolio. However, value’s underperformance compared to growth has made it very difficult to own. The traditional metric that value managers use, Price/Book, has not worked in recent years. We believe free cash flow yield is a more appropriate way to evaluate value stocks and could be key in identifying overlooked companies. In an upcoming webcast, Pacer ETFs and ETF Trends will explain how targeted investment strategies centered around free cash flow yield could help solidify your portfolio in today’s difficult investing landscape.
Topics will include:
- How value is often the centerpiece of a strong portfolio
- Free cash flow yield and the ways in which it can be used as a metric to identifying value companies
- Bonus idea – A strategy to find yield in a no yield environment
NOT accepted for one hour of CFP/CIMA CE credit for live and on-demand attendees
CFA Institute members are encouraged to self-document their continuing professional development activities in their online CE tracker.
Pacer ETFs Distributors
Dave NadigCIO, Director of Research
ETF Trends and ETF Database