May 21, 2021
The recent tech and cryptocurrency sell-off are sparking more fear of market volatility ahead, putting value-based ETFs in focus.
Value equities can help mute the volatility with their decreased sensitivity to extreme market swings. It’s one of the reasons they’ve been preferred over growth equities so far in 2021.
“Growth has outperformed value over the past decade – apart from a brief period in 2016 when value sharply but briefly outperformed,” a Capital.com article said. “Since then, growth has rallied strongly, driven primarily by a handful of mega-cap darlings. This resulted in the widest valuation spreads between growth and value on record.”
Value x Momentum: This ETF Strategy Is Dominating 2021 May 2, 2021
The value factor is outpacing growth so far in 2021. Add momentum to the mix to get funds like the
DVLU seeks investment results that correspond generally to the price and yield of an index called the Dorsey Wright Momentum Plus Value Index. The fund uses an indexing investment approach to replicate the performance of the Index.
As of April 28, DVLU is skewed towards the financial and consumer discretionary sectors. Both sectors comprise about three-fourths of the fund’s net assets.
Pop the hood of DVLU and casual investors might not easily identify names like Unum Group or PVH Corp. DVLU’s strategy delves deeply into undervalued names in the large- to mid-cap equities universe using a fundamental approach via four metrics: price-to-sales ratio, price-to-book ratio, price-to-earnings ratio, and price-to-cash flow ratio.
Shopping for IRA Options? Consider This ETF April 27, 2021
The exponential growth of ETFs have allowed investors to tap into their growth potential for individual retirement accounts (IRAs). One ETF to consider for IRAs is the
‘One of the biggest advantages IRAs have over employer sponsored retirement plans is that IRAs generally offer far more choices in terms of what’s available for you to buy,” a Muscatine Journal article said. “Of course, that advantage can quickly turn into a disadvantage if analysis paralysis sets in and keeps you from making a decent decision in a timely manner.”
“A good way to get past that risk is to first think about what your strategy is and then find low-cost ETFs that align with your strategy,” the article added.