Top Value ETFs To Buy This Month
October began with optimism and a three-week winning streak. However, times in the last week have surely changed. In this week alone, the market witnessed its worst daily sell-off since June and is on pace for its worst-performing week since March. Investors are becoming increasingly nervous. COVID continues to surge to all-time high numbers, with further economic restrictions on the horizon and no stimulus shortly. Election anxiety is also permeating through these uneasy times. Although investors are fearful of a double-dip recession if more countries follow France and Germany’s lead and re-lockdown their economies, economic data and earnings continue to pour in and outperform expectations. However, until things change, volatility is the new normal, and gains will be capped. One of the ways that investors can cope with the current market climate is by investing in ETFs that focus on quality undervalued companies. This is a strategy that offers investors investable indexes with a significant 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. With many 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. While our rating system usually includes Top Buys, Attractive, Neutral, Unattractive, and Top Shorts, this month, we have only one ETF rated Attractive, three rated Neutral, three rated Unattractive, and two rated as Top Shorts.
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Vanguard Value ETF (VTV)
The first and only Attractive 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 BRK.B , Johnson & Johnson JNJ , Procter & Gamble PG , United Health, and JP Morgan. The ETF has $50,110,120,624.00 AUM, and has seen mixed fund flows. The ETF has a 90-day fund flow of $1,878,381,185.29, a 30-day fund flow of $202,410,796.39, and a 1-week fund flow of -$13,512,723.16. Its net expense ratio of .04% is very reasonable.
iShares Core S&P U.S. Value ETF (IUSV)
Our first Neutral rated value ETF is the iShares Core S&P U.S. Value ETF IUSV . This ETF aims to track large-cap and mid-cap S&P stocks that are undervalued relative to the market. The ETF is on the smaller side with $6,509,614,594.20 AUM, and has seen consistently positive fund flows. Its 90-day fund flow is $375,424,390.00, 30-day fund flow is $37,818,155.00, and 1-week fund flow is $5,471,950.00. Its net expense ratio of .04% is also very attractive.
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 $8,009,614,558.40 AUM. The ETF has seen consistently positive fund flows, with a fund flow of $112,925,965.00 over the last 90-days, a fund flow of $16,922,150.00 over the last 30-days, and a 1-week fund flow of $139,192,375.00. 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 one of the smallest ETFs on this list with only $4,380,425,180.00 AUM. The ETF has also seen mixed fund flows, with positive fund flows over 90-days and 30-days of $4,535,153,055.00 and $4,590,617,180.00 respectively, and negative fund flows over 1-week of -$14,493,730.00. Its net expense ratio of .25% is less attractive compared to other similar ETFs.
Vanguard Russell 1000 Value (VONV)
The Vanguard Russell 1000 Value ETF VONV is our first Unattractive ETF on the list. This ETF tracks a similar index, with similar holdings of high quality U.S. value stocks like many of the other ETFs on this list. At $2,676,989,250.00 AUM, this is the smallest ETF on the list. The ETF has seen consistently positive fund flows, with a 90-day fund flow of $160,610,250.00, 30-day fund flow of $120,611,500.00, and 1-week fund flow of $5,501,500.00. Its net expense ratio of .12% is also fairly reasonable.
Schwab U.S. Large-Cap Value ETF (SCHV)
The next Unattractive ETF 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 $6,528,495,544.68 AUM. The ETF has seen mixed fund flows, with a positive 90-day fund flow of $19,914,981.80, positive 30-day fund flow of $20,612,929.00, and negative 1-week fund flow of $-$7,913,508.85. Its net expense ratio of .04% is very cheap and attractive.
Vanguard Mid-Cap Value ETF (VOE)
The final Unattractive 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 $8,955,203,873.88 AUM and has seen consistently negative fund flows over the last few months. The ETF has a 90-day fund flow of -$44,124,987.91, 30-day fund flow of -$11,319,680.61, and 1-week fund flow of-$58,095,788.66. Its net expense ratio of .07% is fairly reasonable.
Vanguard Mega Cap Value ETF (MGV)
The Vanguard Mega Cap Value ETF MGV is our first Top Short 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, Johnson & Johnson, Procter & Gamble, United Health, and JP Morgan. The ETF is on the smaller side with $2,844,880,349.19 AUM, and has seen consistently positive fund flows. It has a 90-day fund flow of $91,955,802.08, 30-day fund flow of $15,682,750.00, and 1-week fund flow of $1,938,000.00. Its net expense ratio of .07% is cheap and decent.
Alpha Architect U.S. Quantitative Value ETF (QVAL)
The Alpha Architect U.S. Quantitative Value ETF QVAL is our second and final Top Short 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. The ETF is the largest on this list with $111,379,500.00 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 $255,500.00. Its net expenses ratio of .79% is by far the most expensive on this list, and is not attractive.
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