Best Value ETFs For July

Investing

Many investors are currently facing the most uncertain business environment of their lifetimes. With entire economies effectively stalled, and a chaotic political situation worldwide, it’s difficult to assign intrinsic values to equity shares. Are high stock prices a sign that the market has untethered itself from reality on the economic ground? Or do they mean that current choppiness is dwarfed by strong long-term prospects for American businesses? Our Artificial Intelligence (“AI”) systems supported by our deep learning algorithms are approaching this question by selecting a list of top value ETFs, as well as top shorts.

Vanguard Russell 1000 Value ETF (VONV)

Our system was conservative this week, only rating one ETF as “Attractive.” The Vanguard Russell 1000 Value ETF (VONV) has gained over $126 million in net investment over the past 30 days, indicating healthy investor attention. The fund has over $2 billion in Assets Under Management (AUM), and a comparatively small Net Expense Ratio (NER) of 0.12%, which may have entered positively into our model’s decision.

Alpha Architect US Quantitative Value ETF (QVAL)

Our AI model selected the Alpha Architect US Quantitative Value ETF (QVAL) for a “Top Buy” rating. Investor flows are stationary over the last week, but the fund grew by $21 million over the past 90 days. A 0.79% net expense ratio means that this fund is rather pricey, however. Value can’t be a losing investment forever, even though it has lagged growth for an extremely long time now.

Vanguard Value ETF (VTV), Vanguard Small-Cap Value ETF (VBR), iShares Russell Mid-Cap Value ETF (IWS), iShares Russell 2000 Value ETF (IWN), iShares Edge MSCI USA Value Factor ETF (VLUE), iShares S&P Mid-Cap 400 ETF (IJJ), SPDR S&P 600 SmallCap Value ETF (SLYV), First Trust large Cap Value AlphaDEX Fund (FTA)

Our system labeled a number of ETFs as “Top Shorts,” including Vanguard Value ETF (VTV), Vanguard Small-Cap Value ETF (VBR), iShares Russell Mid-Cap Value ETF (IWS), iShares Russell 2000 Value ETF (IWN), iShares Edge MSCI USA Value Factor ETF (VLUE), iShares S&P Mid-Cap 400 ETF (IJJ), SPDR S&P 600 SmallCap Value ETF (SLYV), and First Trust large Cap Value AlphaDEX Fund (FTA). Most of these have had net outflows over the past 90 days, mostly in the hundreds of million. However, iShares Edge MSCI USA Value Factor ETF (VLUE) has grown by $1.8 billion in that time frame. Most of these funds have AUM levels in the billions, however Vanguard Value ETF (VTV) has the highest on our list with $46 billion under management. Expense ratios are moderate, with First Trust Large Cap Value AlphaDEX Fund (FTA) clocking in at 0.62%, and the rest in the 0.04%-0.25% range. Expense ratios that aren’t justified by fund performance may have entered our model as a negative signal.

iShares Russell 1000 Value ETF (IWD), Vanguard Mid-Cap Value ETF (VOE), Vanguard Mega Cap Value ETF (MGV)

Our deep learning technology flagged three ETFs for an “Unattractive” rating; these are iShares Russell 1000 Value ETF (IWD), Vanguard Mid-Cap Value ETF (VOE), and Vanguard Mega Cap Value ETF (MGV). All of them have seen non-negative investor flows over the past week, which may indicate overheated prices. With expense ratios ranging from an acceptable 0.07% to 0.2% (iShares Russell 1000 Value ETF (IWD)), we don’t think that the model penalized these funds on that basis.

iShares S&P 500 Value ETF (IVE), Schwab US Large-Cap Value ETF (SCHV), iShares Core S&P US Value ETF (IUSV)

The model assigned a “Neutral” rating to three ETFs it considered: namely iShares S&P 500 Value ETF (IVE), Schwab US Large-Cap Value ETF (SCHV), iShares Core S&P US Value ETF (IUSV). This category is not consistent in net investor flows, with both positive, negative, and zero values over the past day. All three funds have at least $5 billion under management, with iShares S&P 500 Value ETF (IVE) holding over $14 billion in investor cash. In terms of expense ratios, iShares S&P 500 Value ETF (IVE) costs investors 0.18%, which underperforms the other two at 0.04%.

Invesco S&P 500 Pure Value ETF (RPV), Invesco S&P SmallCap 600 Pure Value ETF (RZV), Invesco S&P MidCap 400 Pure Value ETF (RFV)

Our artificial intelligence technology left three funds without ratings: Invesco S&P 500 Pure Value ETF (RPV), Invesco S&P SmallCap 600 Pure Value ETF (RZV), and Invesco S&P MidCap 400 Pure Value ETF (RFV). All cost over 0.35%, and have less than $1 billion under management, with consistently negative investor flows over the past 90 days. These metrics compare unfavorably to our Attractive and Top Buy ETFs; the lack of movement over the past week may have influenced our model to remain undecided, rather than negative.

Products You May Like

Articles You May Like

Your Money Is Losing Value | DO THIS NOW
Nikola’s entire quarterly revenue of $36,000 was from solar installation for the executive chairman
Desperate parents are turning to ‘learning pods’ this fall. Here’s what it can cost
Multiple Offers And Bidding Wars Return To California’s Luxury Market
Trump’s executive order

Leave a Reply

Your email address will not be published. Required fields are marked *