IWD - IWD: Undervalued And Priced For 10% Returns
- IWD stands to generate roughly 10% returns per annum on the basis of its good underlying return on equity and modest valuation.
- IWD will contain some loss-making companies, but historically these do not tend to represent a substantial portion of the fund's underlying benchmark index.
- The fund is based on the Russell 1000 Value index. Constituents are perhaps necessarily unexciting, but the price of IWD makes the risk/reward fairly intuitively attractive.
- The fund is not over-priced, in fact it is probably undervalued, and this could provide more risk averse investors with some peace of mind.
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IWD: Undervalued And Priced For 10% Returns