SCHV - SCHV: Value Is A Questionable Choice As Interest Rates Are Steady
2024-06-14 23:19:39 ET
Summary
- SCHV is a nicely diversified investment vehicle that targets comparatively inexpensive U.S. stocks.
- Financials-heavy SCHV is offering a weighted-average adjusted EY of around 5.2% that comes with a 5.24% forward EPS growth rate.
- SCHV underperformed IVV and IVE over the January 2010–May 2024 period, capturing less downside but, sadly, less upside as well.
- Assuming the market environment, I believe SCHV’s factor proposition is unappealing; thus, I see no justification for a rating above Hold.
Today's article is supposed to provide a second look at the Schwab U.S. Large-Cap Value ETF ( SCHV ), a value factor-focused investment vehicle that I previously covered in July 2021. Back then, I opted for a more conservative Hold rating, mostly owing to the fund's imperfect strategy, which resulted in its portfolio having too-large exposure to companies with a D+ Quant Valuation grade or worse....
SCHV: Value Is A Questionable Choice As Interest Rates Are Steady