SCHV News and Press, Schwab U.S. Large-Cap Value From 11/05/22

Summary These are unprecedented times when every asset class except for certain commodities seems to be volatile and the associated market moves can also be difficult to understand. For this purpose, a divergence chart built from the share prices of SCHV and SCHG helps to show tha...

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...

Summary We sit down to discuss why indexing changed everything, why value is back and the fact that not all inflation is created equal. Will value stocks win for the patient investor over the coming three to five years? I'd give that very, very high odds. Central banks believe...

Summary MGV follows a value strategy using 5 metrics in a large cap universe. Healthcare and financials are the heaviest sectors. Valuation ratios are not much cheaper than the S&P 500. It has underperformed the broad index since 2010. Two drawbacks of usual value ...

Summary SCHV is a well-diversified large-cap value fund. The top 3 sectors are financials, healthcare, and industrials. Portfolio quality metrics are similar to the S&P 500. It has lagged the S&P 500 since inception, but attenuates losses in 2022. Two shortcomi...

Summary Skewness in asset returns is a perplexing phenomenon and evokes different behavior from investors. Our theory is that skewness tends to move based on investor preferences. Investors in growth stocks may be pursuing lottery-like payouts, especially when such stocks are ...

Summary YTD, the S&P 500 is now down 24% while bonds have their own double-digit losses. Like stock valuations, currency valuations aren’t great timing tools but over a 3-year period after becoming undervalued, the outperformance is strong. Consumer defensive stocks...

Summary As the Fed walks the line between curbing inflation and averting recession, anxious investors are seeking to balance the two risks. The question now is how fast can inflation fall and where does it come to rest? We don’t see a quick retrenchment or a return to the o...