U.S. Large-Cap Value Equity

U.S. large-cap value mutual funds and ETFs invest in large-cap stocks deemed... U.S. large-cap value mutual funds and ETFs invest in large-cap stocks deemed to be undervalued on a fundamental basis. Value investing is the opposite of growth investing, which seeks to own companies that may exhibit faster growth than the market average. Value investing can also be beneficial if a company pays out healthy dividend yields, which can increase an investor’s total return. Depending on the mandate, the fund or ETF can invest in companies deemed to be undervalued based on current factors such as book value, earnings per share, revenue, or free cash flow. Value stocks tend to trade at lower valuations (price-earnings ratios, for example), than growth stocks. U.S. large-cap stocks are typically defined as those in the top 70% of market capitalization. Another defining feature of large-cap stocks is that they usually have a market capitalization greater than US$10 billion. On one hand, value companies can be good investments if they continue to exhibit solid financial performance, or turn around struggling parts of their business. On the other hand, a value stock that loses market share or bleeds cash may significantly decline in price. Funds focused on U.S. large-cap value companies typically have a large concentration in the industrial, financial services, and healthcare sectors. U.S. large-cap value mutual funds and ETFs are usually appropriate for more conservative investors who aren’t comfortable with heightened levels of volatility. Last Updated: 01/02/2025 View more View less

U.S. large-cap value mutual funds and ETFs invest in large-cap stocks deemed to be undervalued on a fundamental basis. Value investing is the opposite of growth investing, which seeks to own companies that... U.S. large-cap value mutual funds and ETFs invest in large-cap stocks deemed to be undervalued on a fundamental basis. Value investing is the opposite of growth investing, which seeks to own companies that may exhibit faster growth than the market average. Value investing can also be beneficial if a company pays out healthy dividend yields, which can increase an investor’s total return. Depending on the mandate, the fund or ETF can invest in companies deemed to be undervalued based on current factors such as book value, earnings per share, revenue, or free cash flow. Value stocks tend to trade at lower valuations (price-earnings ratios, for example), than growth stocks. U.S. large-cap stocks are typically defined as those in the top 70% of market capitalization. Another defining feature of large-cap stocks is that they usually have a market capitalization greater than US$10 billion. On one hand, value companies can be good investments if they continue to exhibit solid financial performance, or turn around struggling parts of their business. On the other hand, a value stock that loses market share or bleeds cash may significantly decline in price. Funds focused on U.S. large-cap value companies typically have a large concentration in the industrial, financial services, and healthcare sectors. U.S. large-cap value mutual funds and ETFs are usually appropriate for more conservative investors who aren’t comfortable with heightened levels of volatility. Last Updated: 01/02/2025 View more View less