Value Has Given Up The Ghost

In the last few months of 2020 and throughout 2021, the S&P 500 Value ETF (IVE) was consistently outperforming its growth counterpart (IVW). Since its most recent high in early June, though, IVE has given up the ghost falling 2.5%. Although not a dramatic decline, IVE’s drop has coincided with a rally of 7.3% in IVW and an even larger 12.5% rally off the May 12th lows.

With growth having gained so much ground on value, on Tuesday, IVW’s year-to-date performance actually moved above that of IVE. That has continued to be the case through the rest of the week as IVW is currently outperforming IVE on a year-to-date basis by almost a full percentage point. Additionally, looking at the past year’s relative strength between the two ETFs, the recent divergence in performance has resulted in relative strength reverting back to zero meaning growth and value have roughly performed in line with one another over the one-year span. 

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