Stock Buybacks In Vogue And Those Companies' Stocks Are Outperforming

Invesco Buyback Index (PKW) versus S&P 500 Index Return June 26, 2021

In addition to the buyback focus of the Buyback Index, the stock selection criteria leads the final portfolio of stocks in PKW to have a value tilt. From a style perspective, large value comprises 19% of PKW's holdings versus 5% for large growth, mid-cap, and small-cap styles.

I wrote earlier this year about the significance of value outperforming growth in relation to a pickup in economic growth, and I believe value-oriented/economic-sensitive stocks continue to outperform the broader S&P 500 Index given the continued improvement in the economy.

This value outperformance is an indication that investors also expect sustained economic growth into the foreseeable future and are rewarding the economically-sensitive companies and sectors.

buyback (PKW) and pure growth (RPG) and pure value (RPV) performance

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Disclaimer: The information and content should not be construed as a recommendation to invest or trade in any type of security. Neither the information nor any opinion expressed constitutes a ...

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