- SPVU is an ultra-focused S&P 500 Value ETF. 82% of its constituents are in just 20 industries, making it the most concentrated large-cap value ETF on the market.
- SPVU scores well on valuation and has an 11.90x forward P/E ratio with 18% estimated EPS growth. However, much of the growth is because of its 38% allocation to financials.
- I will show why bank stocks like Bank of America, Wells Fargo, and Citigroup are best bought after severe market corrections and recessions. Overweighting now doesn't make sense.
- SPVU desperately needs the Fed to succeed in controlling inflation while staving off a recession. Otherwise, it likely will underperform the S&P 500 and provide no value to defensive investors.
- SPVU is a hold. I'm not comfortable with the concentration risk and think more diversified ETFs like MGV and VTV are better choices.
For further details see:
SPVU: An Ultra-Concentrated Value ETF You Should Avoid