REVS News and Press, Columbia Research Enhanced Value ETF From 01/19/23

Summary Amid the worst rout for US stocks in more than a decade, Value stocks showed impressive staying power, finishing in 2022 with far smaller losses than their Growth counterparts and the US market overall. Though Value’s outperformance versus Growth spanned most industries i...

Summary Avoiding growth last year paid enormous dividends, but I didn’t predict that growth stocks would fall in 2022, just that I couldn’t own them and fulfill our fiduciary duty. Near-term stock market performance is negatively correlated with economic growth. Commod...

Summary 2022 was the first year since 2016 that value investing thoroughly trounced growth investing. Growth had a nice spurt off the lows in June and October ’22 but the higher 10-year Treasury yield is acting like a wet blanket for growth stocks. I continue to think that no...

Summary Inflation continues to moderate, not only here, but also in Europe. Despite the negative economic reports and the reaction to the Fed rate hike, the US Dollar barely budged for the week. Value yet again outperformed Growth in the last week, this time by a spread of almost 1%...

Summary Avoiding envy, and its associated pitfalls, is one of the simple secrets to a successful investment portfolio. Value once again outperformed Growth in the last week. After closing below the 200-day moving average for two weeks running, the US Dollar seems firmly entrenched i...

Summary There’s a growing valuation discount between our portfolios and their respective indices. Today, one can purchase a higher-quality portfolio for a discounted price relative to the index. This creates an attractive entry point for our actively managed small- to mid-cap...

Summary They may be far fewer in number than they used to be but traditional value investors are still out there, harnessing the power of “the force” in markets. Investors still interested in “thinking” their way to wealth (rather than giving in to the ...

Summary Based on our proprietary research in value investing, we find that deeper-valued stocks tend to outperform when the valuation spread, meaning the difference between cheap and expensive stocks, peaks from a very wide level. Valuation spreads narrowing and then starting to w...

Summary Short-sightedness has become an epidemic in investing. Meme stocks have convinced retail investors that getting rich overnight is a viable plan. With all the ways to invest these days, it seems like value investors are few and far between. Those who know how to properl...

Summary While still a source of outperformance this year, the global rotation into Value struggled for traction in Q3, thwarted by a summer rally in long-time laggard Quality. The recent back-and-forth between Value and Quality reflects their compositional differences and the diff...