IUSV - IUSV: Value Stocks Offer Implicitly High Returns In 2022
- IUSV invests in a collection of stocks considered likely to be "value stocks" per popular pricing metrics: ratios of book value, earnings, and sales to price (per S&P's simple methodology).
- While the methodology is crude, a simple analysis of the fund's likely forward IRR based on consensus expectations leads me to believe that the fund is indeed cheap.
- The forward IRR could be as much as 11% and even more with earnings multiple expansion, which is conceivable.
- Even without a valuation uplift, IUSV's portfolio seems safe, diversified, and undervalued, making it an interesting opportunity for more risk-averse investors looking for equity exposure amid the recent turmoil.
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IUSV: Value Stocks Offer Implicitly High Returns In 2022