This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXNPEC0Q1B5_M.jpg
While growth investing proved to be more profitable than value investing over the past decade, the current, impending, economic recovery positions value stocks well to outperform their growth counterparts. That’s because the shares of many quality companies became undervalued thanks to a temporary pause in their businesses amid the worst of the COVID-19 pandemic and consequent shift in investors’ attention away from them. Now, as the economy enters a recovery phase, investors are rotating away from pricey growth stocks to quality bargains. This is evidenced by the SPDR Portfolio S&P 500 Value ETF’s (SPYV) 13.5% returns so far this year versus the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 9.1% gains.
As such, we think investing in the following value ETFs could now be rewarding: Vanguard Small-Cap Value Index Fund ETF Shares (VBR), iShares S&P 500 Value ETF (IVE), iShares Russell 2000 Value ETF (IWN), and iShares Edge MSCI USA Value Factor ETF (VLUE).
