IWN - VTWV: Small-Cap Value Needs Large-Cap Growth Rotation
2024-04-12 18:28:24 ET
Summary
- Small-caps and value stocks have been underperforming, but they are expected to lead again in the future.
- Vanguard Russell 2000 Value Index Fund ETF Shares is worth considering for exposure to US small-cap value stocks.
- The VTWV ETF has slightly outperformed its competitor, the iShares Russell 2000 Value ETF, and has a low expense ratio.
Small-caps have been terrible performers relative to large-caps. Value has been a terrible style performer relative to growth. But the one fact pertaining to all conditions is that they will change. At some point, both small and valuable I believe should lead again. And if you agree, then the Vanguard Russell 2000 Value Index Fund ETF Shares ( VTWV ) is worth a look. VTWV is an exchange-traded fund designed to track the Russell 2000 Value Index, representing U.S. small-cap value stocks. The idea of combining the value and size factors forms the core of VTWV's investment strategy, and this approach is rooted in the Fama-French three-factor model....
VTWV: Small-Cap Value Needs Large-Cap Growth Rotation