Top U.S. Value ETFs For November

After the brutal sell-offs from the last two weeks, sentiment has surely changed this week, with stocks surging. Investors are clearly just relieved that the election is over, and are optimistic that some clarity will come regarding results sooner rather than later. However, there are still significant headwinds to be mindful of. The election could always become contested, which will surely induce volatility in the markets. Additionally, until there is some sort of conclusion in the election, there is no end in sight for a stimulus package. COVID is still surging to record numbers as well, as countries around the world are reimposing lockdown measures. One of the ways that investors can protect themselves from unpredictable markets is through investing in value ETFs. These ETFs focus on quality and value, rather than trends and returns. This is a strategy that provides investors with investable indexes that have been undervalued and offer upside. Although growth has outperformed value over the last several years, value investing is a tried and true style of investing that is perfect for uncertain times. Although many are concerned about unpredictable markets, Q.ai’s deep learning algorithms have identified several Top U.S. Value ETFs based on 90-day, 30-day, and 1-week fund flows. Our rating system usually includes Top Buys, Attractive, Neutral, Unattractive, and Top Shorts. This month, we have two Top Buys, three Attractive, three Neutral, and one Unattractive.

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Top Buy

Vanguard Mega Cap Value ETF (MGV)

After coming in as a Top Short last week, the Vanguard Mega Cap Value ETF MGV is now our first Top Buy on our Top U.S. Value ETFs list. This ETF aims to give investors diversified exposure to the largest value stocks in the U.S. such as Berkshire Hathaway BRK.B , Johnson & Johnson JNJ , Procter & Gamble PG , United Health, and JP Morgan. The ETF is on the smaller side with $2,983,433,875.48 AUM, and has seen consistently positive fund flows. It has a 90-day fund flow of $126,006,552.08, 30-day fund flow of $26,959,750.00, and 1-week fund flow of $18,929,500.00. Its net expense ratio of .07% is cheap and decent. 

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Schwab U.S. Large-Cap Value ETF (SCHV)

The next Top Buy on our list is the Schwab U.S. Large-Cap Value ETF SCHV . The ETF aims to track the total return of the Dow Jones U.S. Large-Cap Value Total Stock Market Index, and is on the smaller side with $6,806,840,446.08 AUM. The ETF has seen mixed fund flows, with a positive 90-day fund flow of $38,076,411.10, negative 30-day fund flow of -$15,872,532.80, and negative 1-week fund flow of -$2,616,310.65. Its net expense ratio of .04% is very cheap and attractive.

Attractive

Vanguard Russell 1000 Value (VONV)

The Vanguard Russell 1000 Value ETF VONV is our first Attractive ETF on the list. This ETF tracks a similar index, of similar holdings consisting of high quality U.S. value stocks like many of the other ETFs on this list. With $2,797,794,000.00 AUM, this is one of the smallest ETF on the list in terms of AUM. The ETF has seen mixed fund flows, with a 90-day fund flow of $163,230,250.00, 30-day fund flow of $76,644,250.00, and 1-week fund flow of -$7,752,750.00. Its net expense ratio of .12% is also fairly reasonable.

Vanguard Mid-Cap Value ETF (VOE)

The next Attractive ETF on our list is the Vanguard Mid-Cap Value ETF VOE . This ETF tracks an index of mid-cap value stocks, with top holdings consisting of familiar names such as WEC Energy Group WEC , Eversource Energy, Willis Towers Watson, Motorola, and Clorox CLX . The ETF has $9,482,650,996.56 AUM and has seen mixed fund flows over the last few months. The ETF has a 90-day fund flow of -$44,083,682.23, 30-day fund flow of -$23,732,187.05, and 1-week fund flow of $10,739,062.85. Its net expense ratio of .07% is fairly reasonable.

Vanguard Small-Cap Value ETF (VBR)

The final Attractive ETF VBR  on our list is the Vanguard Small-Cap Value ETF. This ETF tracks an index of diversified small-cap value stocks consisting of mainly Industrials, Financials, and Consumer Discretionary stocks. The ETF has $14,210,597,399.50        AUM and has seen mixed fund flows over the last few months. The ETF has a 90-day fund flow of $130,234,373.51, 30-day fund flow of $121,682,704.02, and 1-week fund flow of -$1,735,519.25. Its net expense ratio of .07% is also quite decent.

Neutral

Vanguard Value ETF (VTV)

The first Neutral rated ETF is the Vanguard Value ETF VTV . This ETF aims to track an index of large-cap U.S. value stocks such as Berkshire Hathaway, Johnson & Johnson, Procter & Gamble, United Health, and JP Morgan. The ETF has $52,430,969,473.10 AUM, and has seen consistent fund flows. The ETF has a 90-day fund flow of $1,931,175,107.34, a 30-day fund flow of $309,826,564.53, and a 1-week fund flow of $47,895,666.81. Its net expense ratio of .04% is very reasonable.

iShares Russell 2000 Value ETF (IWN)

Next on the list of Neutral rated Top U.S. Value ETFs is the iShares Russell 2000 Value ETF IWN . This ETF tracks an index made up of small-cap U.S. value stocks that trade on the Russell 2000 index. In terms of AUM, the ETF is on the smaller side with $8,662,508,466.30 AUM. The ETF has seen consistently positive fund flows, with a fund flow of $274,062,120.00 over the last 90-days, a fund flow of $228,295,895.00            over the last 30-days, and a 1-week fund flow of $208,645,175.00. Its net expense ratio of .24% is pricier compared to other similar ETFs.

iShares S&P Mid-Cap 400 Value ETF (IJJ)

Our final Neutral rated Top U.S. Value ETF IJJ is the iShares S&P Mid-Cap 400 Value ETF. This ETF tracks an index consisting of mid-cap value stocks that trade on the S&P 500. The ETF is on the smaller side in terms of AUM, only $4,564,609,201.45 AUM. The ETF has also seen mixed fund flows, with positive fund flows over 90-days and 30-days of $4,468,759,880.00 and $4,538,186,110.00 respectively, and negative fund flows over 1-week of -$59,549,950.00. Its net expense ratio of .25% is less attractive compared to other similar ETFs.

Unattractive

Alpha Architect U.S. Quantitative Value ETF (QVAL)

The Alpha Architect U.S. Quantitative Value ETF QVAL is the lone Unattractive ETF on our list. This ETF is a unique, fully automated ETF, that uses an algorithm to systematically select the cheapest high quality value stocks. The ETF’s automated stock selection process generally builds out a portfolio that holds between 40 and 50 stocks. In terms of AUM, this ETF is the largest on this list with $117,030,200.00 AUM. The ETF has also seen marginally positive fund flows, with a 90-day fund flow of $2,961,100.00, 30-day fund flow of $503,600.00, and 1-week fund flow of 0. Its net expense ratio of .79% is by far the most expensive on this list, and is not attractive.  

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