We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Value stocks are significantly outperforming their growth counterparts this year. The Russell 1000 Value Index has returned roughly 23% year to date, compared with just about 4% for the Russell 1000 Growth Index. Meanwhile, the iShares MSCI USA Value Factor ETF ((VLUE - Free Report) ) has surged more than 47% year to date.
Some investors have favored attractively valued stocks to reduce their exposure to mega-cap concentration amid heightened market volatility. However, value stocks have also benefited significantly from the AI trade.
While investors traditionally look to growth and tech-focused funds for AI exposure, value ETFs have increasingly become direct and indirect beneficiaries of the AI investment cycle.
Multiples for some tech giants at the forefront of AI deployment have compressed as earnings have accelerated, allowing these legacy tech leaders to be picked up by value screens.
Traditionally value-oriented sectors such as industrials, utilities, and materials have also benefited from rising AI spending.
VLUE tracks the MSCI USA Enhanced Value Index, which scores each security for value characteristics relative to peers within the same GICS sector. Micron ((MU - Free Report) ) is the fund’s largest position, with about a 22% weight, while information technology accounts for roughly 41% of the portfolio.
The iShares Russell 1000 Value ETF ((IWD - Free Report) ) tracks the Russell 1000 Value Index. At its rebalance in late June, the index added Amazon ((AMZN - Free Report) ), Apple ((AAPL - Free Report) ), and Microsoft ((MSFT - Free Report) ) as its top holdings. The information technology sector currently accounts for about 20% of the index.
The Vanguard Morningstar Value ETF ((VTV - Free Report) ) holds large-cap US stocks that display strong value characteristics. JPMorgan Chase ((JPM - Free Report) ), Micron, and Berkshire Hathaway ((BRK.B - Free Report) ) are its top holdings.
To learn more, please watch the short video above.
View the Zacks #1 Rank List
Are Value ETFs the New AI Trade?
Value stocks are significantly outperforming their growth counterparts this year. The Russell 1000 Value Index has returned roughly 23% year to date, compared with just about 4% for the Russell 1000 Growth Index. Meanwhile, the iShares MSCI USA Value Factor ETF ((VLUE - Free Report) ) has surged more than 47% year to date.
Some investors have favored attractively valued stocks to reduce their exposure to mega-cap concentration amid heightened market volatility. However, value stocks have also benefited significantly from the AI trade.
While investors traditionally look to growth and tech-focused funds for AI exposure, value ETFs have increasingly become direct and indirect beneficiaries of the AI investment cycle.
Multiples for some tech giants at the forefront of AI deployment have compressed as earnings have accelerated, allowing these legacy tech leaders to be picked up by value screens.
Traditionally value-oriented sectors such as industrials, utilities, and materials have also benefited from rising AI spending.
VLUE tracks the MSCI USA Enhanced Value Index, which scores each security for value characteristics relative to peers within the same GICS sector. Micron ((MU - Free Report) ) is the fund’s largest position, with about a 22% weight, while information technology accounts for roughly 41% of the portfolio.
The iShares Russell 1000 Value ETF ((IWD - Free Report) ) tracks the Russell 1000 Value Index. At its rebalance in late June, the index added Amazon ((AMZN - Free Report) ), Apple ((AAPL - Free Report) ), and Microsoft ((MSFT - Free Report) ) as its top holdings. The information technology sector currently accounts for about 20% of the index.
The Vanguard Morningstar Value ETF ((VTV - Free Report) ) holds large-cap US stocks that display strong value characteristics. JPMorgan Chase ((JPM - Free Report) ), Micron, and Berkshire Hathaway ((BRK.B - Free Report) ) are its top holdings.
To learn more, please watch the short video above.