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(1:13) – Classic Value Investing: The Benefits of Long Term Investing
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(7:30) – New Era of Value Investing: What It Means To Be A Value Investor Today
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(12:45) – Top Stocks To Keep On Your Radar
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(23:00) – Value ETFs To Help Your Portfolio Gain Exposure
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In this episode of ETF Spotlight, I speak with Tracey Ryniec, Senior Equity Strategist at Zacks, about value investing.
Value stocks had been out of favor for many years, but the trend reversed late last year in anticipation of a powerful economic rebound. In recent weeks, some investors have gravitated back toward growth stocks due to rising economic uncertainty. What lies ahead?
In the Value Investor portfolio, Tracey owns a mix of “classic” value stocks, those with low P/E, P/S or PEG ratios, and the “new era” value stocks. Some of the recently launched value ETFs also use different or enhanced value investing strategies.
The Sparkline Intangible Value ETF
ITAN
selects companies based on “intangible-augmented intrinsic value.” Microsoft
MSFT
, Amazon
AMZN
and Apple
AAPL
are the top three holdings in the ETF currently.
Pinterest
PINS
shares are currently trading with a forward P/E of 50 but the stock is “on sale” compared to peers and has healthy earnings growth. It’s a “new era” value stock, per Tracey.
Auto stocks are very hot this year due to the global chip shortage, but they are still cheap.Penske
PAG
has a forward P/E of just 6.6. Earnings are expected to decline 20% next year but will still be elevated compared to pre-pandemic levels.
NuSkin
NUS
has fallen 20% in the past three months and is cheaper than ever. This is also a classic value stock, and the market is completely ignoring its growth story.
The Vanguard Value ETF
VTV
is the most popular and one of the cheapest ETFs in the space. It uses multiple value factors to select stocks.
The Invesco S&P SmallCap 600 Pure Value ETF
RZV
is one of the best performing value ETFs this year but is likely to be volatile.
Take a look at the Vanguard Mega Cap Value ETF
MGV
if you prefer the safety of mega caps in the current uncertain market environment.
The Alpha Architect U.S. Quantitative Value ETF
QVAL
seeks to select the cheapest, highest quality value stocks, using quantitative screens.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email
[email protected]
.
Disclosure: Neena owns shares of VTV and RZV in the ETF Investor Portfolio.
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