VUG - A Significant Turning Point May Have Been Reached: Did You Miss It?
2024-04-23 12:59:24 ET
Summary
- A significant turning point in investors' portfolio management may have been reached just days ago.
- On April 19th, the YTD performance of the average value stock surpassed that of the average growth stock for the first time since Jan. 11th.
- If the turning point is confirmed in subsequent weeks, it suggests that investors should begin to overweight value funds over growth or even perhaps S&P 500 funds.
- Evidence was provided to support the above recommendation.
Just days ago, on April 19, something potentially highly significant happened that perhaps only a few investors would have noticed: there was a more than three percentage difference between that day's returns for the average Large Cap Value fund and the average Large Cap Growth fund, according to Morningstar's U.S. Barometer. Specifically, the former returned +0.94% and the latter minus 2.09%. And, if you owned Vanguard's Value ETF ( VTV ), your return would have been +0.67%; the Vanguard Growth ETF ( VUG ) return was -2.29%, for nearly a 3% difference....
A Significant Turning Point May Have Been Reached: Did You Miss It?