Value Equity

Value mutual funds and ETFs invest the majority of their assets in... Value mutual funds and ETFs invest the majority of their assets in stocks deemed to be undervalued on a fundamental basis. Broadly speaking, this category is divided into 'U.S.' and 'International Value'. Depending on their mandate, they may invest in equities of varying market capitalizations (small, medium, and large), sectors, as well as specific investment strategies. 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. Value mutal funds and ETFs tend to invest in companies considered 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. 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. Value mutual funds and ETFs are usually appropriate for more conservative investors who aren’t comfortable with heightened levels of volatility. Last Updated: 01/30/2025 View more View less

Value mutual funds and ETFs invest the majority of their assets in stocks deemed to be undervalued on a fundamental basis. Broadly speaking, this category is divided into 'U.S.' and 'International Value'. Depending... Value mutual funds and ETFs invest the majority of their assets in stocks deemed to be undervalued on a fundamental basis. Broadly speaking, this category is divided into 'U.S.' and 'International Value'. Depending on their mandate, they may invest in equities of varying market capitalizations (small, medium, and large), sectors, as well as specific investment strategies. 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. Value mutal funds and ETFs tend to invest in companies considered 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. 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. Value mutual funds and ETFs are usually appropriate for more conservative investors who aren’t comfortable with heightened levels of volatility. Last Updated: 01/30/2025 View more View less