Value stocks, which have strong fundamentals - earnings, dividends, book value and cash flow - and trade below their intrinsic value, have been benefiting from the growth in the economy.
Zacks Value Investor Highlights: VTV, RZV, RPV, XSVM and AVUV
Value stocks are king of the world in 2021. Which ETFs are on top?
The S&P 500 has been hitting a series of record highs and rebounded about 83% from its bottom reached in March last year, representing the best start to the new bull market on record, per LPL data.
The U.S. small-cap index the Russell 2000 has outperformed its bigger peer equity gauges by wide margin this year.
The U.S. small-cap index the Russell 2000 has outperformed its bigger peer equity gauges by wide margin this year.
With increased confidence in swift economic recovery, value stocks and ETFs have been outperforming in 2021.
The combination of factors will result in increased industrial activity and pickup in consumer demand, thereby lifting value stocks.
The S&P 500, the Dow Jones, the Nasdaq Composite and the Russell 2000 put up a great show last week, with the Russell 2000 -- the small-cap index -- clocking the best performance.
Wall Street has been super upbeat in recent sessions on vaccine hopes. Value has been pretty cheap versus momentum and growth.
The month of November has been upbeat for Wall Street due to vaccine hopes and chances of a divided Congress in the United States.
While the rally has been broad-based across all the market caps, small-caps stocks, as indicated by the Russell 2000 Index, has been outperforming and is hitting new all-time highs.
Small caps were among the most beaten-down zones during the coronavirus-led economic slowdown. However, things have been changing lately.
Fed and government support as well as pent-up consumer demand may boost small-cap value ETFs amid rising coronavirus cases.
