The Russia-Ukraine war, skyrocketing crude oil and natural gas prices, surging inflation, and the likelihood of aggressive interest rate hikes by the Federal Reserve this year continue to hang like a pall over the stock market.
After the Fed revealed its plans to increase the interest rates aggressively to tame the high inflation, the five-year U.S. Treasury yield hit 3% on Friday. The market downturn has led to many quality stocks trading at attractive valuations.
Since value stocks generally perform well in high-inflation periods, we think it could be wise to invest in Vanguard Value ETF (VTV), iShares Russell 1000 Value ETF (IWD), iShares S&P 500 Value ETF (IVE), iShares Edge MSCI USA Value Factor ETF (VLUE), and SPDR Series Trust SPDR Portfolio S&P 500 Value ETF (SPYV), which offer significant exposure to quality value stocks.
VTV is connected to the MSCI US Prime Market Value Index, which offers exposure to large-cap companies that have value characteristics within the U.S. equity market. Long-term investors can consider the importance of large-cap value stocks and the benefits they can add to any well-balanced portfolio, including dividends and rock-solid stability.
With $104.02 billion in assets under management, VTV’s top holdings include Berkshire Hathaway Inc. Class B (BRK.B) with a 3.38% weighting; UnitedHealth Group Incorporated (UNH) at 2.63%; and Johnson & Johnson (JNJ) at 2.55%. Over the past month, the ETF’s fund flows were $308.56 million. In addition, its 0.04% expense ratio compares favorably to the 0.49% average for its industry category.
Closing the last trading session at $145.28, the ETF is currently trading below its 52-week high of $151.89. VTV’s NAV stands at $145.27. The fund has a five-year monthly beta of 0.96, indicating less volatility than the broader market. Also, the fund has gained 7.4% in price over the past year and 5.1% over the past nine months.
VTV’s POWR Ratings reflect this promising outlook. The ETF has an overall A rating, which equates to Strong Buy in our proprietary rating system.
VTV has an A grade for Trade and Buy & Hold and a B for Peer. Among the 86 ETFs in the A-rated Large Cap Value ETFs group, VTV is ranked #1.
iShares Russell 1000 Value ETF (IWD)
The ETF is linked to the Russell 1000 Value Index, which offers exposure to large-cap companies that exhibit value characteristics within the U.S. equity market.
The fund has approximately $57.24 billion in assets under management (AUM). BRK.B is IWD’s top holding, with a 3.03% weighting, followed by JNJ and UNH, with 2.30% and 2.27% weightings, respectively.
IWD has an expense ratio of 0.19% versus the category average of 0.49%. The fund has gained 3.3% over the past year and 1.9% over the past nine months.
Closing the last trading session at $161.96, the ETF is currently trading below its 52-week high of $170.69. IWD’s NAV stands at $161.89.
It is no surprise that IWD has an overall A rating, which translates to Strong Buy in our POWR Ratings system. It also has an A for Trade grade and Buy & Hold grade. In addition, it is currently ranked #2 in the Large Cap Value ETFs group. In addition, one can access IWD’s Peer grade here.
iShares S&P 500 Value ETF (IVE)
IVE is linked to the S&P 500/Citigroup Value Index, which provides exposure to large-cap companies that have value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large-cap value stocks and the benefits they can add to any well-balanced portfolio, including dividends and rock-solid stability.
The fund has $25.71 billion in assets under management. Its top holdings are BRK.B with a 3.31% weighting; JNJ at 2.51%; and Procter & Gamble Company (PG) at 2.03%. IVE’s 0.18% expense ratio compares with the 0.49% category average.
Closing the last trading session at $152.87, the ETF is currently trading below its 52-week high of $159.80. IVE’s NAV stands at $152.70. The fund has a five-year monthly beta of 0.98, indicating less volatility than the broader market. The fund has gained…
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