Exploring the Benefits and Uses of Value Strategies

The current macroeconomic backdrop has investors considering whether or not value’s ascendency still has legs to run. Yet it seems every market pundit has a different take on the growth vs. value debate. 

Source: Exploring the Benefits and Uses of Value Strategies

In the upcoming webcast, , Craig Lazzara, Managing Director, Global Head of Index investment Strategy, S&P Dow Jones Indices; and Nick Kalivas, Head of Factor and Core Equity Product Strategy, Invesco, will explore the perspectives behind the growth vs. value debate, as well as how forward-thinking investors can capitalize on what the rest of the year brings.

Investors can utilize targeted exchange traded funds to track the value style. For example, the Invesco S&P 500 Pure Value ETF (RPV) follows the S&P 500 Pure Value Index, which measures stocks based on book-value-to-price ratio, earnings-to-price ratio, and sales-to-price ratio. S&P 500 companies are also measured by several growth factors.

“The ratio between the growth score and the value score is used to rank each stock as either deep value, blend or deep growth. Only the deep value stocks are selected and are factor weighted such that securities demonstrating the strongest value characteristics receive proportionally greater weights,” according to Invesco.

The Invesco S&P MidCap 400 Pure Value ETF (RFV) tracks the S&P MidCap 400 Pure Value Index, which measures the performance of securities that exhibit strong value characteristics in the S&P MidCap 400 Index. Value is measured by risk factors, including book value-to-price ratio, earnings-to-price ratio and sales-to-price ratio.

Lastly, the Invesco S&P SmallCap 600 Pure Value ETF (RZV) is based on the S&P SmallCap 600 Pure Value Index, which measures the performance of securities that exhibit strong value characteristics in the S&P SmallCap 600 Index.

Financial advisors who are interested in learning more about value strategies can register for the Tuesday, August 24 webcast here.

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