VTV - RPV: Pure Value Is Outpacing The S&P 500 This Year Can It Continue?
- RPV holds the top 20% of S&P 500 stocks with the strongest value characteristics. Fees are relatively high at 0.35%, and the ETF has nearly $3 billion in assets.
- RPV has outperformed the S&P 500 Index by 17% YTD due to its overweighting of Financials and Energy stocks.
- In particular, RPV holds 15 insurance stocks that tend to do well in rising rate environments. I'll present a lookback to 2004 to support that view.
- RPV is much more volatile than your average large-cap value ETF. Buyers should be able to accept this risk, but historically, they were rewarded. RPV has outperformed broad-based value ETFs like VTV since its launch.
- I'm maintaining my buy rating, and expect outperformance to continue until there are signs inflation is under control and interest rate increases will pause.
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RPV: Pure Value Is Outpacing The S&P 500 This Year, Can It Continue?