VOOV - VOOV: Value Taking A Breather But Remains Attractive Long Term

2024-06-24 21:02:04 ET

Summary

• The value has lost ground to growth stocks for close to 18 months, despite strength in the underlying US economy.
• VOOV features high liquidity and a low cost, providing long-term investors a solid choice for factor exposure.
• Despite relative weakness to US large cap growth, I see upside ahead with VOOV, and highlight key price levels on the chart to monitor.

Value outperformed growth sharply from late 2021 through early last year. The style roles reversed, however, shortly after the launch of ChatGPT. Over the past nearly 18 months, the rally in growth shares compared to value has been something to behold. Right now in markets, it feels like value cannot get itself off the mat, but zooming out, we find that this factor has historically provided superior returns. Moreover, amidst a multi-year drubbing of non-sexy cyclicals and blue chips, the valuation gap between value and growth is historically big. ...

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