Bet On These Top Value ETFs Now

Also, the latest ISM Manufacturing PMI data for the United States is painting a rosy picture for the sector. The ISM Manufacturing PMI read 61.2 in May against 60.7 in April. May’s growth was higher than analysts’ expectations of 60.7. Moreover, manufacturing activity rose for the 12th straight month.

Strengthening optimism about U.S. economic recovery, the latest reading on the first-time claims for unemployment benefits for the week ended May 29 came in at 385,000, as mentioned in a CNBC article. It compared favorably with the Dow Jones estimate of 393,000. Moreover, the jobless claims slid below 400,000 for the first time since the early days of the coronavirus outbreak, per the same CNBC article.

It is worth noting here that Keith Lerner, chief market strategist at Truist, has also commented that “technology sector earnings momentum relative to the broader market peaked in late May of 2020. Given that we expect the economy to grow well above trend this year and next, value stands to benefit. Indeed, when looking at the value indices, they are dominated by financials and tend to have greater exposure to economically-sensitive sectors that are more leveraged to an economic recovery,” according to a CNBC article.

Top-Ranked Value ETFs to Bet on

It is worth noting here that value investing seems more lucrative given the improvement in corporate earnings growth and expectation of higher inflation. Moreover, value stocks seek to capitalize on market inefficiencies. They can deliver higher returns with lower volatility compared with the growth and blend counterparts. Additionally, value stocks are less exposed to trending markets and their dividend payouts offer a safety shield during market turbulence.

Against this backdrop, here are some top-ranked value ETFs that investors can consider betting on:

iShares S&P 500 Value ETF IVE

The fund provides exposure to large U.S. companies that are potentially undervalued relative to comparable companies. With AUM of $23.08 billion, it charges 18 basis points (bps) in expense ratio. The fund carries a Zacks Rank #2 (Buy).

View single page >> |

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.