IWB - FNDX: A $10 Billion ETF That Nicely Blends Value With Growth
- FNDX is a rules-based ETF focused on three fundamental factors: leverage-adjusted sales, retained operating cash flow, and shareholder yield. Its expense ratio is 0.25% and has $10 billion in AUM.
- The ETF performed poorly in 2020, along with most fundamental ETFs. Investors should expect underperformance in heavy risk-on environments, but that's not my view of the market today.
- Besides, FNDX has a forward EPS growth rate of 17.76%, just 2.71% less than the Russell 1000. Yet, it's trading at a significant discount on forward P/E (18.46 vs. 21.12).
- The ETF is overweight Energy and Financials, and underweight Technology. If you already own a broad-based ETF, you may be able to mimic FNDX's exposures using sector ETFs.
- Still, for passive investors, FNDX looks great. Expect it to outperform the Russell 1000 in the near term, and I'm rating it a buy today.
For further details see:
FNDX: A $10 Billion ETF That Nicely Blends Value With Growth