iShares Russell 1000 Value ETF (ARCA: IWD)

Ultime notizie per iShares Russell 1000 Value ETF (ARCA:IWD)

iShares Russell 1000 Value ETF

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The Fund seeks to track the investment results of the Russell 1000 Value Index; the Underlying Index, which measures the performance of large and mid-capitalization value sectors of the U.S. equity market, as defined by FTSE Russell; the Index Provider or Russell.

Berkshire Hathaway, Inc.

JP Morgan Chase & Co

Exxonmobil Corp.

United Health Group Incorporated Com

Johnson & Johnson

Walmart, Inc.

Procter & Gamble Company

Chevron Corp.

Bank Of America Corp.

Thermo Fisher Scientific Inc

ETRACS 2x Leveraged US Value Factor TR ETN

Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) named Morgan Stanley&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) James P. Gorman as Chairman of the Board, effective January 2, 2025, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/b41426383/the-walt-disney-company-board-names-james-p-gorman-as-chairman-effective-january-2-2025" rel="noreferrer noopener">taking over from</a> Mark G. Parker.
Parker will depart on January 2 after nine years of service. Gorman will depart as Executive Chairman of Morgan Stanley on December 31, 2024.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/41052867/disneys-streaming-surge-epic-games-deal-among-key-growth-drivers-says-analyst" rel="noreferrer noopener">Disney&#8217;s Streaming Surge, Epic Games Deal Among Key Growth Drivers, Says Analyst</a>
He is currently Chair of the Disney Board&#8217;s Succession Planning Committee, which is working to identify and prepare the company&#8217;s next CEO. Gorman flagged Disney&#8217;s plan to appoint a new CEO, which it expects to announce in early 2026.
During Disney&#8217;s <a target="_blank" href="https://www.benzinga.com/general/entertainment/24/05/38690996/disney-ceo-bob-iger-remains-tight-lipped-on-successor-but-assures-smooth-transition" rel="noreferrer noopener">second-quarter earnings call</a>, CEO Bob Iger gave a vague response when asked about his succession plans, stating that the board is actively managing the process with a dedicated committee. Iger assured a smooth transition but did not reveal specific details, sparking continued speculation on who will succeed him. Industry experts named key internal candidates like Dana Walden and Josh D&#8217;Amaro. Bob Iger returned as Disney&#8217;s CEO in November 2022 after serving as CEO and Chair from 2005 to 2020. In 2020, Iger was succeeded by Bob Chapek, but tensions reportedly arose between the two over the CEO office at Disney headquarters.
Jim Cramer <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41377944/jim-cramer-says-hed-buy-the-dip-if-disney-stock-goes-to-this-level" rel="noreferrer noopener">expressed interest in</a> buying more Disney shares if the stock drops below $90 during the October Investing Club Meeting. He noted Disney&#8217;s theme parks have faced challenges but emphasized the strategic opportunity of purchasing during market downturns. Cramer suggested Disney focus more on theme parks for growth instead of relying solely on movies and television.
Disney reportedly <a target="_blank" href="https://www.benzinga.com/news/24/09/41045649/disney-trims-workforce-by-300-targets-corporate-departments-for-cost-management" rel="noreferrer noopener">fired 300 employees</a> across multiple corporate departments as of September. Earlier in 2024, the company let go of 140 employees in its television division and 175 workers in its Pixar subsidiary.
Disney stock lost over 13% in the last six months. Investors can gain exposure to Disney through iShares Russell 1000 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWD#NYSE">IWD</a>) and Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>).
Price Actions: DIS stock is down 0.76% at $96.55 at the last check Monday.
Image via Shutterstock
Also Read:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41389192/microsoft-azure-office-365-and-gaming-to-drive-low-double-digit-growth-analyst" target="_blank" rel="noreferrer noopener">Microsoft Azure, Office 365, and Gaming To Drive Low Double Digit Growth: Analyst</a></li>
</ul>

Equities

News

Management

Disney's Leadership Shift: James Gorman Named As Chairman, CEO Search Underway

Sam&#8217;s Club, the&nbsp;$86 billion&nbsp;division of&nbsp;Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>), introduced a fresh workforce compensation plan, which boosted pay for close to 100,000 frontline associates and provided guidance for <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b40900897/sams-club-reimagines-workforce-compensation-launches-new-plan-focused-on-providing-more-predictabl" rel="noreferrer noopener">longer-term financial futures</a>.
More engaged workers proved productive, offered better service, and were more likely to stay, especially as competition heated up in the retail space.
Sam&#8217;s Club&#8217;s new plan proposes increasing associate hourly wages by 3%—6% based on years of service. The plan sets predictable pay increase milestones.
Also Read: <a href="https://www.benzinga.com//node/40902098">Evaluating Walmart Against Peers In Consumer Staples Distribution &amp; Retail Industry</a>
With these new compensation investments, the average hourly rate for Sam&#8217;s Club associates will likely exceed $19, with the potential to earn thousands of dollars annually in bonuses. In the last five years alone, Sam&#8217;s Club raised the average hourly wage by close to 30%.
In July, Walmart Canada raised the <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39989702/walmart-canada-boosts-wages-for-40-000-workers-details" rel="noreferrer noopener">hourly wage for</a> close to 40,000 of its store associates amid easing inflation and rising unemployment in Canada. In June, the company announced bonuses for U.S. hourly store workers benefiting 700,000 front-line staff.
Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) is <a target="_blank" href="https://www.benzinga.com/news/24/09/40792054/amazon-targets-walmarts-grocery-market-with-expanded-prime-discounts" rel="noreferrer noopener">aggressively chasing Walmart&#8217;s</a> U.S. grocery market share by expanding Prime benefits, including discounts on over 3,000 grocery items. Walmart led the U.S. grocery market with a 23.6% market share in 2023, as per&nbsp;<a target="_blank" href="https://www.statista.com/statistics/1450393/leading-grocery-store-by-market-share-us/#:~:text=U.S.:%20leading%20grocers%202023%2C%20by%20market%20share&amp;text=In%202023%2C%20the%20leading%2011,at%20just%20over%2010%20percent." rel="noreferrer noopener">Statista</a>.
Walmart reported <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40391777/walmart-q2-earnings-e-commerce-and-advertising-businesses-fuel-revenue-and-profit-beat-hikes-annual" rel="noreferrer noopener">second-quarter sales</a> growth of 4.8% to&nbsp;$169.34 billion, beating the analyst consensus of&nbsp;$168.57 billion. At Sam&#8217;s Club, same-store sales rose&nbsp;5.2% year over year, excluding fuel.
Walmart stock is up 46% in the last 12 months. Investors can gain exposure to the stock through iShares Russell 1000 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWD#NYSE">IWD</a>) and Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>).
Price Action: WMT stock is down 2.53% at $78.52 at last check Tuesday.
Image via Shutterstock

AMZN

Walmart Division Sam's Club Raises Wages For Hourly Associates: A Strategic Move To Stay Ahead In Retail

Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) plans another round of job cuts in its TV division, targeting a shrinking segment of its business.
The company will eliminate about 140 positions, representing roughly 2% of staff at Disney Entertainment Television, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-31/disney-plans-a-new-round-of-job-cuts-in-its-television-operation?sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
These cuts will significantly affect networks like NatGeo and Freeform, reducing their programming. ABC stations will also see job reductions as part of this cost-saving effort.
Disney is striving to balance the need for streaming investments against the rapid decline of its profitable cable networks.
NatGeo will see about 13% of its staff cut, focusing its remaining efforts on a few shows like Genius: MLK/X.
Freeform, targeting a teen audience with shows like Grown-ish, has seen its viewership shift to streaming, prompting further cuts. Disney is also cutting jobs in its marketing and publicity teams, Bloomberg writes.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/01050348/newplot-1.png" alt="" class="wp-image-469805" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/01050348/newplot-1.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/01050348/newplot-1-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
The company&#8217;s entertainment TV networks contributed about 12% of total revenue in the last reported quarter, excluding sports operations like ESPN.
Disney got a boost <a target="_blank" href="https://www.benzinga.com/news/24/07/39991247/disney-amc-and-imax-stocks-surge-after-deadpool-wolverine-breaks-box-office-records" rel="noreferrer noopener">from the collections of</a> Ryan Reynolds and Hugh Jackman starrer &#8220;Deadpool &amp; Wolverine,&#8221; reaching a record for an R-rated film. The movie earned $205 million in ticket sales in the U.S. and Canada this weekend, marking the year&#8217;s largest domestic debut, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/videos/2024-07-29/-deadpool-at-205-million-is-biggest-opening-of-year?srnd=phx-economics-v2&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
According to Statista, Amazon.Com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) Prime Video and Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) dominated the U.S. subscription video-on-demand (SVOD) market in the <a target="_blank" href="https://www.benzinga.com/news/24/07/40042764/amazon-challenges-netflix-with-cheaper-ad-slots-boosts-prime-video-ads-report" rel="noreferrer noopener">second quarter of 2024</a>, each securing a 22% share.
Investors can gain exposure to Disney through iShares Russell 1000 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWD#NYSE">IWD</a>) and iShares S&amp;P 500 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVE#NYSE">IVE</a>).
Price Actions: DIS shares traded higher by 0.11% at $93.79 premarket at the last check on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

Tech

Media

NFLX

Disney Plans More Layoffs in TV Unit, Focuses on Streaming Investments: Report

Launched on 05/22/2000, the iShares Russell 1000 Value ETF (ARCA:IWD) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $55.66 billion, making it the largest ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF&#39;s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.19%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.96%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 23% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc Class B&nbsp;accounts for about 3.54% of total assets, followed by JPMorgan Chase &amp; Co&nbsp;and Exxon Mobil Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>).
The top 10 holdings account for about 17.89% of total assets under management.
Performance and Risk
IWD seeks to match the performance of the Russell 1000 Value Index before fees and expenses. The Russell 1000 Value Index measures the performance of the large-capitalization value sector of the U.S. equity market.
The ETF has added about 6.18% so far this year and is up about 13.62% in the last one year (as of 07/09/2024). In the past 52-week period, it has traded between $143.69 and $179.11.
The ETF has a beta of 0.95 and standard deviation of 15.18% for the trailing three-year period, making it a medium risk choice in the space. With about 851 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWD is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $54.39 billion in assets, Vanguard Value ETF has $115.94 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2298260/should-ishares-russell-1000-value-etf-iwd-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2298260">To read this article on Zacks.com click here.</a>

Earnings

Sector ETFs

Markets

Analyst Ratings

Trading Ideas

ETFs

SCHD

Should iShares Russell 1000 Value ETF Be on Your Investing Radar?

Growth stocks are experiencing a remarkable resurgence, posting their best month in over a year when compared to value stocks, as the rally in tech and mega caps continues<a href="https://www.benzinga.com/markets"> to dominate market dynamics. </a>
The iShares Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>) has surged by 6.5% so far in June 2024. This gain puts it on track for its seventh month of increases in the last eight.
Investors have shown elevated confidence in growth-oriented sectors, particularly technology, which continues to benefit from strong earnings reports, heightened expectations for future cash flows and positive market sentiment, especially towards AI-related industries.
In stark contrast, the iShares Russell 1000 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWD#NYSE">IWD</a>), representing the other major equity style, has declined by 1.4% in June. 
This divergence highlights the challenges facing value stocks, which typically encompass sectors like financials, energy, utilities, and consumer staples. These sectors have struggled to attract investor interest due to their less impressive performance and subdued earnings expectations.
The performance gap between growth and value in June 2024 stands at a striking 7.9 percentage points, marking the most substantial monthly performance difference since May 2023. 
With one trading week remaining in the month, if the gap exceeds 9.6 percentage points, previously reached in March 2020, it will mark the largest one-month outperformance of growth over value ever recorded.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/21143747/image-50-1024x500.png" alt="" class="wp-image-400005" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/21143747/image-50-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/21143747/image-50-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/21143747/image-50-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/21143747/image-50-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/21143747/image-50.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">4 Key Factors Driving Growth&#8217;s Outperformance Over Value</h3>
Technology Sector&#8217;s Dominance in Growth ETFs: The technology sector&#8217;s heavy weighting in growth-related ETFs has been the main driver of their outperformance. In the Russell 1000 Growth ETF, tech stocks comprise a substantial 47% of the portfolio. In stark contrast, the Russell 1000 Value ETF allocates only 9.5% to tech stocks.
Impact of Chipmakers on Growth Performance: Within the tech sector, the substantial weighting of chipmakers in growth funds has been another critical factor, as they have been the main beneficiaries of the current AI-driven rally. The semiconductor sector represents 17% of the growth ETF, compared to a mere 4.2% in the value ETF.
Absence of Nvidia, Magnificent 6 In Value ETFs: Notably, &#8220;The Magnificent 6&#8221; – as named by Bank of America – Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), and Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) – are absent from the value-linked ETF but collectively hold a 50% weight in the growth ETF.
Stock Concentration and Market Breadth Differences: The higher stock concentration in growth-related ETFs compared to value socks is another crucial factor, especially in the current context of poor market breadth. The top 10 stocks in the Russell 1000 Growth ETF comprise 57% of the overall portfolio, whereas the top 10 in the value-related ETF account for only 17% of the total weight.
<h3 class="wp-block-heading">Top 7 Performing Growth Stocks In June</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Price Chg. % (MTD)</td>
</tr>
<tr>
<td>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</td>
<td>26.85%</td>
</tr>
<tr>
<td>Texas Pacific Land Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>)</td>
<td>22.95%</td>
</tr>
<tr>
<td>Sarepta Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SRPT#NASDAQ">SRPT</a>)</td>
<td>22.88%</td>
</tr>
<tr>
<td>Adobe Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADBE#NASDAQ">ADBE</a>)</td>
<td>19.95%</td>
</tr>
<tr>
<td>Oracle Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>)</td>
<td>19.91%</td>
</tr>
<tr>
<td>CrowdStrike Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>)</td>
<td>19.48%</td>
</tr>
<tr>
<td>Autodesk, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADSK#NASDAQ">ADSK</a>)</td>
<td>19.04%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">As of June 21, 2024</figcaption></figure>
<h2 class="wp-block-heading">Top 7 Performing Value Stocks In June</h2>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Price Chg. % (MTD)</td>
</tr>
<tr>
<td>Coherent Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COHR#NYSE">COHR</a>)</td>
<td>24.68%</td>
</tr>
<tr>
<td>DC Technology Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DXC#NYSE">DXC</a>)</td>
<td>20.23%</td>
</tr>
<tr>
<td>Guidewire Software, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GWRE#NYSE">GWRE</a>)</td>
<td>19.58%</td>
</tr>
<tr>
<td>Universal Display Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OLED#NASDAQ">OLED</a>)</td>
<td>18.71%</td>
</tr>
<tr>
<td>Ollie&#8217;s Bargain Outlet Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OLLI#NASDAQ">OLLI</a>)</td>
<td>18.52%</td>
</tr>
<tr>
<td>Zillow Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZG#NYSE">ZG</a>)</td>
<td>17.88%</td>
</tr>
<tr>
<td>Hewlett Packard Enterprise Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>)</td>
<td>16.29%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">As of June 21, 2024</figcaption></figure>
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39431836/5-charts-expose-troubling-weaknesses-in-record-high-stock-market-this-is-not-normal">5 Charts Expose Troubling Weaknesses In Record-High Stock Market: &#8216;This Is Not Normal&#8217;</a>
Image created using artificial intelligence via Midjourney.

Analyst Color

Large Cap

Mid Cap

Broad U.S. Equity ETFs

Small Cap

AAPL

ADBE

ADSK

AVGO

COHR

CRWD

GOOG

GOOGL

GWRE

MSFT

NVDA

OLED

OLLI

ORCL

SRPT

Growth Stocks Leave Value Stocks In The Dust: 4 Reasons For Biggest Monthly Lead In Over A Year

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the iShares Select Dividend ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dvy#NASDAQ">DVY</a>) is a passively managed exchange traded fund launched on 11/03/2003.
The fund is sponsored by Blackrock (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/blk#NYSE">BLK</a>). It has amassed assets over $17.87 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
Investors should also pay attention to an ETF&#39;s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.38%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.84%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Utilities sector--about 28.50% of the portfolio. Financials and Consumer Staples round out the top three.
Looking at individual holdings, Altria Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mo#NYSE">MO</a>) accounts for about 2.94% of total assets, followed by AT&amp;T Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/t#NYSE">T</a>) and Verizon Communications Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vz#NYSE">VZ</a>).
The top 10 holdings account for about 18.21% of total assets under management.
Performance and Risk
DVY seeks to match the performance of the Dow Jones U.S. Select Dividend Index before fees and expenses. The Dow Jones U.S. Select Dividend Index measures the performance of a selected group of equity securities issued by companies that have provided relatively high dividend yields on a consistent basis over time.
The ETF has added roughly 3.56% so far this year and was up about 8.57% in the last one year (as of 06/18/2024). In the past 52-week period, it has traded between $102.97 and $125.75.
The ETF has a beta of 0.88 and standard deviation of 15.82% for the trailing three-year period, making it a medium risk choice in the space. With about 107 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Select Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DVY is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (ARCA:IWD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While iShares Russell 1000 Value ETF has $54.76 billion in assets, Vanguard Value ETF has $116.20 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2289562/should-ishares-select-dividend-etf-dvy-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2289562">To read this article on Zacks.com click here.</a>

iShares Dow Jones Select Dividend Index Fund

Should iShares Select Dividend ETF Be on Your Investing Radar?

A smart beta exchange traded fund, the Invesco FTSE RAFI US 1000 ETF (ARCA:PRF) debuted on 12/19/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor &amp; Index
The fund is managed by Invesco, and has been able to amass over $6.81 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. Before fees and expenses, PRF seeks to match the performance of the FTSE RAFI US 1000 Index.
The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures.An overall weight is calculated for each firm by equally-weighting each fundamental measure.
Cost &amp; Other Expenses
Investors should also pay attention to an ETF&#39;s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.39%, making it on par with most peer products in the space.
It&#39;s 12-month trailing dividend yield comes in at 1.69%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For PRF, it has heaviest allocation in the Financials sector --about 20.20% of the portfolio --while Information Technology and Healthcare round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc accounts for about 2.30% of total assets, followed by Exxon Mobil Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) and Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>).
Its top 10 holdings account for approximately 16.93% of PRF&#39;s total assets under management.
Performance and Risk
So far this year, PRF has gained about 8.19%, and is up about 19.89% in the last one year (as of 06/13/2024). During this past 52-week period, the fund has traded between $30.37 and $38.58.
The ETF has a beta of 0.99 and standard deviation of 15.74% for the trailing three-year period, making it a medium risk choice in the space. With about 1014 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco FTSE RAFI US 1000 ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (ARCA:IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (ARCA:VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $54.84 billion in assets, Vanguard Value ETF has $115.35 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
<a href="https://www.zacks.com/stock/news/2287628/is-invesco-ftse-rafi-us-1000-etf-prf-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2287628">To read this article on Zacks.com click here.</a>

PowerShares Exchange Traded Fund FTSE RAFI US 1000 Portfolio

Is Invesco FTSE RAFI US 1000 ETF a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Invesco S&amp;P 500 Pure Value ETF (ARCA:RPV) is a smart beta exchange traded fund launched on 03/01/2006.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it&#39;s possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor &amp; Index
The fund is managed by Invesco. RPV has been able to amass assets over $2.01 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the S&amp;P 500 Pure Value Index before fees and expenses.
The S&amp;P 500 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&amp;P 500 Index.
Cost &amp; Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.35%.
It&#39;s 12-month trailing dividend yield comes in at 2.35%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it&#39;s still important for investors to research a fund&#39;s holdings.
RPV&#39;s heaviest allocation is in the Financials sector, which is about 30.60% of the portfolio. Its Healthcare and Consumer Discretionary round out the top three.
When you look at individual holdings, General Motors Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gm#NYSE">GM</a>) accounts for about 4.02% of the fund&#39;s total assets, followed by Berkshire Hathaway Inc (BRK/B) and Ford Motor Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/f#NYSE">F</a>).
The top 10 holdings account for about 25.57% of total assets under management.
Performance and Risk
The ETF has gained about 3.79% so far this year and is up roughly 15.51% in the last one year (as of 06/07/2024). In the past 52-week period, it has traded between $67.85 and $88.44.
The fund has a beta of 1.17 and standard deviation of 19.08% for the trailing three-year period, which makes RPV a medium risk choice in this particular space. With about 98 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&amp;P 500 Pure Value ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (ARCA:IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (ARCA:VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $55.21 billion in assets, Vanguard Value ETF has $115.63 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
<a href="https://www.zacks.com/stock/news/2285091/is-invesco-s-p-500-pure-value-etf-rpv-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2285091">To read this article on Zacks.com click here.</a>

Is Invesco S&P 500 Pure Value ETF a Strong ETF Right Now?

Shares in the travel and leisure industry are increasingly catching the eye of value investors, presenting discounted valuations alongside promising growth prospects for <a href="https://www.benzinga.com/topic/travel">the upcoming tourist season.</a>
Since the start of the current bull-market rally, major industry exchange-traded funds (ETFs) tracking travel and leisure companies have underperformed relative to the broader stock market.
The Defiance Hotel, Airline, and Cruise ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRUZ#NYSE">CRUZ</a>), the Alps Global Travel Beneficiaries ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JRNY#NYSE">JRNY</a>), and the AdvisorShares Hotel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEDZ#NYSE">BEDZ</a>) have gained 28%, 24.5%, and 22.8%, respectively, compared to a 29% surge in the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) since late October 2023.
Yet, the outlook for travel-related stocks is improving, drawing interest from traders looking to invest in underperforming sectors amid the broader bull market.
<h1 class="wp-block-heading">Chart: Travel Stocks Lagged Behind The Broader S&amp;P 500 In The Current Bull-Market Rally</h1>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/28110853/image-116-1024x500.png" alt="" class="wp-image-358966" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/28110853/image-116-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/28110853/image-116-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/28110853/image-116-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/28110853/image-116-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/28110853/image-116.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read also: <a href="https://www.benzinga.com/insights/options/24/05/38949636/market-whales-and-their-recent-bets-on-ccl-options">Market Whales and Their Recent Bets on CCL Options</a>
What Happened: On Tuesday, Airbnb Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>) and Norwegian Cruise Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) received analyst upgrades.
Wedbush upgraded Airbnb Inc. from Neutral to Outperform, raising the price target from $160 to $165. 
Analyst Scott Devitt suggested investors should capitalize on this period of relative weakness, seeing potential upside to near-term estimates following conservative second-quarter guidance.
He emphasized Airbnb&#8217;s strong growth prospects and significant potential as the company expanded beyond its core offerings. Wedbush highlighted Airbnb&#8217;s leading competitive position in the alternative accommodation market and opportunities for growth in adjacent products and services.
"We believe the company's expansion will start with the relaunch of Airbnb experiences, with an announcement likely within the next 6-12 months," Wedbush noted. The analyst increased estimates for the second quarter and second half revenue and adjusted EBITDA by 1% and 3%, respectively.
Shares of Airbnb Inc. rose 1.69% to $146.91 on Tuesday at publication.
Mizuho Securities upgraded Norwegian Cruise Holdings from Neutral to Buy, raising the price target from $21 to $24.
Executive Director Ben Chaiken noted a shift in sentiment towards the cruise line, driven by compelling valuations, improving business efficiency and a favorable industry backdrop.
"Valuation has completely reset," Chaiken remarked, highlighting that Norwegian Cruise has underperformed peer Royal Caribbean Cruise Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>) by 160% since January 2023. 
Mizuho Securities raised revenue forecasts from $9.35 billion to $9.41 billion for 2024, and from $9.97 billion to $10.13 billion for 2025, also boosting EBITDA forecasts.
"Together, we find the risk/reward particularly compelling at current levels, with upside/downside of approximately 6:1," Chaiken stated.
Shares of Norwegian Cruise Holdings rose 3.91% to $16.63 on Tuesday at publication.
<h1 class="wp-block-heading">Top 10 Travel &amp; Leisure Stocks With The Highest Upside Potential</h1>
Currently, the Street&#8217;s median price target on Airbnb and Norwegian Cruise Holdings is about 2.2% and 19.7% higher than current prices.
Examining Travel &amp; Leisure stocks included in the iShares Russell 1000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWB#NYSE">IWB</a>), the stocks with the highest upside potential based on the difference between the median Street price target and current prices are:
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Name</th>
<th>Median target (% vs. current price)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Caesars Entertainment, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CZR#NASDAQ">CZR</a>)</td>
<td>61.27%</td>
</tr>
<tr>
<td>MGM Resorts International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGM#NYSE">MGM</a>)</td>
<td>43.40%</td>
</tr>
<tr>
<td>Carnival Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>)</td>
<td>40.66%</td>
</tr>
<tr>
<td>Las Vegas Sands Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LVS#NYSE">LVS</a>)</td>
<td>38.10%</td>
</tr>
<tr>
<td>Wynn Resorts, Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WYNN#NASDAQ">WYNN</a>)</td>
<td>34.45%</td>
</tr>
<tr>
<td>Boyd Gaming Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BYD#NYSE">BYD</a>)</td>
<td>33.40%</td>
</tr>
<tr>
<td>Alaska Air Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>)</td>
<td>30.58%</td>
</tr>
<tr>
<td>Expedia Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXPE#NYSE">EXPE</a>)</td>
<td>29.13%</td>
</tr>
<tr>
<td>United Airlines Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NYSE">UAL</a>)</td>
<td>28.30%</td>
</tr>
<tr>
<td>Wyndham Hotels &amp; Resorts, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WH#NYSE">WH</a>)</td>
<td>27.16%</td>
</tr>
</tbody>
</table>
</figure>
Read Now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/39037833/magnificent-7-becomes-the-magnificent-one-wall-street-guru-hails-single-tech-stock-">Magnificent 7 Becomes &#8216;The Magnificent One&#8217;: Wall Street Guru Hails Single Tech Stock As Market Leader</a>
Photo: Shutterstock

Market Summary

Upgrades

Price Target

Travel

Global

ABNB

BEDZ

CRUZ

EXPE

JRNY

NCLH

WYNN

Airbnb, Norwegian Cruise See Analyst Upgrades: Are Travel And Leisure Stocks The New Value Heaven?

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the ALPS (BATS: <a class="ticker" href="https://www.benzinga.com/stock/ousa#BATS">OUSA</a>) is a passively managed exchange traded fund launched on 07/14/2015.
The fund is sponsored by Alps. It has amassed assets over $755.51 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.48%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.68%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 23.60% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Microsoft Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) accounts for about 5.55% of total assets, followed by Apple Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) and JPmorgan Chase &amp; Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>).
The top 10 holdings account for about 40.55% of total assets under management.
Performance and Risk
OUSA seeks to match the performance of the FTSE US Qual / Vol / Yield Factor 5% Capped Index before fees and expenses. The OShares U.S. Quality Dividend Index measures the performance of publicly-listed large-capitalization and mid-capitalization dividend-paying issuers in the United States.
The ETF has added roughly 7.72% so far this year and it&#39;s up approximately 18.70% in the last one year (as of 05/20/2024). In the past 52-week period, it has traded between $40.56 and $49.41.
The ETF has a beta of 0.88 and standard deviation of 13.78% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, OUSA is an outstanding option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (ARCA:IWD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While iShares Russell 1000 Value ETF has $56.44 billion in assets, Vanguard Value ETF has $117.23 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
<a href="https://www.zacks.com/stock/news/2275803/should-alps-ousa-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2275803">To read this article on Zacks.com click here.</a>

OUSA

Should ALPS Be on Your Investing Radar?

The WisdomTree U.S. LargeCap Dividend ETF (ARCA:DLN) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor &amp; Index
Managed by Wisdomtree, DLN has amassed assets over $4.01 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index.
The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.
Cost &amp; Other Expenses
Investors should also pay attention to an ETF&#39;s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for DLN are 0.28%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.21%.
Sector Exposure and Top Holdings
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
DLN&#39;s heaviest allocation is in the Information Technology sector, which is about 20.50% of the portfolio. Its Financials and Healthcare round out the top three.
When you look at individual holdings, Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) accounts for about 3.74% of the fund&#39;s total assets, followed by JPmorgan Chase &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) and Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>).
DLN&#39;s top 10 holdings account for about 26.98% of its total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. LargeCap Dividend ETF has added roughly 9.88% so far, and it&#39;s up approximately 21.03% over the last 12 months (as of 05/20/2024). DLN has traded between $58.89 and $72.50 in this past 52-week period.
The ETF has a beta of 0.88 and standard deviation of 13.82% for the trailing three-year period, making it a medium risk choice in the space. With about 303 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (ARCA:IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (ARCA:VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $56.44 billion in assets, Vanguard Value ETF has $117.23 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
<a href="https://www.zacks.com/stock/news/2275798/is-wisdomtree-u-s-largecap-dividend-etf-dln-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2275798">To read this article on Zacks.com click here.</a>

Is WisdomTree U.S. LargeCap Dividend ETF a Strong ETF Right Now?

Bank of America&#8217;s technical analyst Stephen Suttmeier shed light on the diverging paths of <a href="https://www.benzinga.com/money/best-growth-stocks">value and growth stocks</a>, underscored by the performance of the iShares Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>) and the iShares Russell 1000 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWD#NYSE">IWD</a>). 
Despite both reaching unprecedented heights, the future seems to favor one over the other, as Suttmeier <a href="https://www.benzinga.com/topic/expert-ideas">highlighted in a note. </a>
<h3 class="wp-block-heading">A Diverging Path: The Growth vs. Value Dichotomy</h3>
Over the past year, the gap between growth and value has widened, with growth outperforming value by 20 percentage points. 
This divergence has become even more pronounced over the last seven years, reaching a staggering near 100 percentage point difference. 
Chart: Growth Stocks Outperform Value, Doubling Relative Performance Over 7-Year Period
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25123828/image-52-1024x495.png" alt="" class="wp-image-264258" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25123828/image-52-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25123828/image-52-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25123828/image-52-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25123828/image-52-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25123828/image-52.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
The underperformance of value stocks compared to growth is notably attributed to the absence of the so-called Magnificent 7 stocks in its portfolio. This includes tech giants and industry leaders absent from the IWD&#8217;s top holdings.
The iShares Russell 1000 Value ETF features Berkshire Hathaway Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NYSE">BKR</a>), JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), and ExxonMobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) as its top three holdings, with weights of 3.5%, 2.7%, and 2.1%, respectively. 
Conversely, the iShares Russell 1000 Growth ETF boasts Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), and Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) as its top three holdings, with weights of 12.1%, 9.5%, and 8.2%, respectively.
Notably, the growth ETF is heavily concentrated in three sectors — technology, consumer discretionary, and communication services. These sectors account for over 70% of the ETF&#8217;s composition, with the top 10 holdings comprising more than 50% of the portfolio. 
Conversely, the value ETF demonstrates greater diversification across sectors and stocks, with financials, industrials, and healthcare collectively making up 50% of its portfolio. Moreover, the top 10 holdings represent only 17% of the value ETF&#8217;s portfolio.
Technical Analysis: Value vs. Growth
From a technical standpoint, Bank of America&#8217;s analysis indicates that IWF has breakout point supports near 312 and 287-285, with upward pattern counts from its 2022-2023 cup and handle pattern at 370 and 420. Following a bullish triangle completion in 2022-2023, IWF has surged to new all-time highs, suggesting further upside potential.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25124228/image-53-1024x495.png" alt="" class="wp-image-264264" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25124228/image-53-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25124228/image-53-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25124228/image-53-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25124228/image-53-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25124228/image-53.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
On the other hand, IWD shows breakout point supports at 171-169 and in the low 160s, with a bullish triangle target from 2022-2023 at 195 and an additional upside count at 208. 
While both ETFs demonstrate potential for further gains, the analyst emphasizes that Growth has maintained its market leadership, whereas Value remains in a long-term lagging trend compared to the S&amp;P 500 index.
Despite IWF&#8217;s relative strength stalling at its 2020 and 2021 highs versus the SPX, the leadership trend for Growth remains intact, particularly above its bullish and rising weekly relative Moving Averages (MAs). 
Conversely, the lagging trend for IWD versus the SPX persists below the declining 13-, 26-, and 40-week MAs, along with chart resistance at the January 2024 lower high and the prior 2021-2020 lows relative to the SPX.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25124506/image-54-1024x495.png" alt="" class="wp-image-264267" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25124506/image-54-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25124506/image-54-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25124506/image-54-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25124506/image-54-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/25124506/image-54.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37915971/apple-analysts-unmoved-by-antitrust-lawsuit-unmatched-brand-strength">Apple Analysts Unmoved By Antitrust Lawsuit: &#8216;Unmatched Brand Strength&#8217;</a>
Image: Shutterstock

Value, Growth Stocks Trade At Record Highs But Long-Term Leadership Lies With One: Analyst

A top Wall Street analyst has issued a cautionary note, warning of a potential sharp reversal in the stock market during the <a href="https://www.benzinga.com/news/earnings/23/06/33001575/market-volatility-increases-s-p-500-snaps-5-week-winning-streak" target="_blank" rel="noreferrer noopener">second half of 2023</a>. 
According to Michael Wilson, Morgan Stanley&#8217;s chief U.S. equity strategist and chief investment officer, the market&#8217;s headwinds presently outweigh its tailwinds, indicating a significant likelihood of a severe correction. Wilson&#8217;s estimate implies that the S&amp;P 500 Index, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) may see a 10% drop in the second half of the year, with a target level of 3,900. 
<h2 class="wp-block-heading">Why Is Morgan Stanley Near-Term Bearish On The Stock Market?</h2>
&#8220;A 20% rally does not guarantee [the] bear market is over,&#8221; Wilson wrote in his latest presentation. 
The analyst drew on the historical parallel of the period immediately following World War II, between 1946 and 1949, when the S&amp;P 500 made a double bottom after rallying 24% from the first low.
Chart: S&amp;P 500 Index Price Action 1945-1949
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="737" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/26102358/SPX_2023-06-26_16-23-05_e3589-1024x737.png" alt="" class="wp-image-57923" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/26102358/SPX_2023-06-26_16-23-05_e3589-1024x737.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/26102358/SPX_2023-06-26_16-23-05_e3589-300x216.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/26102358/SPX_2023-06-26_16-23-05_e3589-768x553.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/26102358/SPX_2023-06-26_16-23-05_e3589-1536x1106.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/26102358/SPX_2023-06-26_16-23-05_e3589.png 1708w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
This pessimistic outlook stems from Morgan Stanley&#8217;s lower-than-expected earnings forecast for the year, which anticipates pricing erosion and disappointing top-line performance. 
&#8220;The Equity risk premium is at very unattractive levels, particularly given our earnings outlook,&#8221; Wilson said. The expert highlighted that stocks are trading in a &#8220;high risk zone,&#8221; susceptible to a sharp rise in the equity risk premium.
<h2 class="wp-block-heading">Headwinds From Restrictive Monetary and Fiscal Policies</h2>
Furthermore, Morgan Stanley noted that the United States&#8217; economic policies are turning more restrictive, putting additional pressure on equities. 
The liquidity environment is rapidly deteriorating, owing to record levels of Treasury issuance and quantitative tightening. Morgan Stanley predicts that bank reserves will shrink by $500-800 billion over the next six months, potentially lowering equity valuations. Wilson noted that the money supply growth is at the lowest levels since the 1930s.
Read Also: <a href="https://www.benzinga.com/government/23/06/32971034/jerome-powell-big-us-banks-could-see-20-increase-in-capital-requirements-2-more-interest-rate-hikes" target="_blank" rel="noreferrer noopener">Jerome Powell: Big US Banks Could See 20% Increase In Capital Requirements, 2 More Interest Rate Hikes Could Come In 2023</a>
Fiscal support is expected to peak and reverse next month, potentially creating a headwind of 6 percentage points to nominal GDP over the next year.
The outlook is more optimistic for 2024, as Wilson expects another earnings boom following a &#8220;proper bust&#8221; in 2023. 
<h2 class="wp-block-heading">Alternative Scenario? The Average Stock Will Fare Better, Value Will Stage A Comeback</h2>
Wilson also made recommendations for an alternative scenario. 
Should his earnings forecast be incorrect, he expects market breadth to improve, with the equal-weighted S&amp;P 500, as tracked by the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>), outperforming the market-cap weighted S&amp;P 500. 
The average stock is expected to fare relatively better both in a more optimistic and more pessimistic scenario, either by rising more or declining less. 
Furthermore, Morgan Stanley believes that value stocks, as tracked by the Ishares Russell 1000 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWD#NYSE">IWD</a>), may outperform growth stocks, which are tracked by the Ishares Russell 1000 growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>) as defensive sectors regain their previous year&#8217;s leadership.
Now Read: <a href="https://www.benzinga.com/news/23/06/32996680/elon-musks-biographer-says-billionaires-difficult-childhood-unleashes-a-demon-mode-that-makes-him-a">Elon Musk&#8217;s Biographer Says Billionaire&#8217;s Difficult Childhood Unleashes A &#8216;Demon Mode&#8217; That Makes Him A Tough Leader</a>
Chart: Year-to-date returns of S&amp;P 500 (market-weighted and equal-weighted), Value and Growth Stocks
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="737" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/26103103/IWF_2023-06-26_16-30-25_bd457-1024x737.png" alt="" class="wp-image-57929" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/26103103/IWF_2023-06-26_16-30-25_bd457-1024x737.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/26103103/IWF_2023-06-26_16-30-25_bd457-300x216.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/26103103/IWF_2023-06-26_16-30-25_bd457-768x553.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/26103103/IWF_2023-06-26_16-30-25_bd457-1536x1106.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/26103103/IWF_2023-06-26_16-30-25_bd457.png 1708w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>

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Rydex ETF Trust Rydex S&P Equal Weight ETF

Top Wall Street Analyst Warns Of 'Proper Bust' In 2023: Stocks Are Trading In 'High Risk Zone'

Small-cap stocks have been on an ascent in June, with the Russell 2000 Index, tracked by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) beating larger-cap indices including the S&amp;P 500, Nasdaq 100, Dow Jones, and Russell 1000, which may portend a potential turning point in the prevailing <a href="https://www.benzinga.com/news/small-cap" target="_blank" rel="noreferrer noopener">market trend of 2023. </a>
Since the start of the year, small caps have faced an uphill battle in the market, particularly when compared to their larger counterparts. Following the regional banking crisis in March, the Russell 2000&#8217;s underperformance has intensified. But the escape from a highly anticipated economic recession for now has provided a much-needed sigh of relief for small cap companies, which heavily rely on economic growth to thrive and expand their businesses.
The chart below illustrates how the iShares Russell 2000 ETF began to outperform the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), the Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>), and the iShares Russell 1000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWD#NYSE">IWD</a>) in the month of June.
Chart: Small Caps Recovered In June, But Still Trail S&amp;P 500 And Nasdaq 100 YTD
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="557" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/08143157/IWM_SPY_2023-06-08_20-31-46_30d01-1024x557.png" alt="russell 20000 relative performance versus S&amp;P 500, Nasdaq 100 in 2023" class="wp-image-49365" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/08143157/IWM_SPY_2023-06-08_20-31-46_30d01-1024x557.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/08143157/IWM_SPY_2023-06-08_20-31-46_30d01-300x163.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/08143157/IWM_SPY_2023-06-08_20-31-46_30d01-768x418.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/08143157/IWM_SPY_2023-06-08_20-31-46_30d01-1536x836.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/08143157/IWM_SPY_2023-06-08_20-31-46_30d01-2048x1114.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Russell 2000: Stock &amp; Industry Contributions
Several specific stocks and sectors have played a significant role in driving the rally of the Russell 2000 Index in June:
Banks: Each small-cap bank in the Russell 2000 Index showed a positive performance in June, as the industry strives to rebound from the upheaval of the previous months. The best performers were: 
<ul>
<li>First Foundation Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FFWM#NASDAQ">FFWM</a>), up 32.7% month to date as of this writing</li>
<li>HomeStreet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HMST#NASDAQ">HMST</a>), up 30%, and </li>
<li>Metropolitan Bank Holding Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NCB#NASDAQ">NCB</a>), up 29%. </li>
<li>SouthState Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SSB#NASDAQ">SSB</a>), the largest bank in the Russell 2000 index, rose by 14%.</li>
</ul>
Read also: <a href="https://www.benzinga.com/trading-ideas/long-ideas/23/06/32757483/rising-from-the-ashes-5-undervalued-regional-bank-stocks-poised-growth-as-industry-rebou" target="_blank" rel="noreferrer noopener">Rising From The Ashes: 5 Undervalued Regional Bank Stocks Poised For Growth As Industry Rebounds</a>
Energy: In June, the median energy stock in the Russell 2000 index increased 11%, with 94 of 97 companies in this sector posting positive returns. The best performers were:
<ul>
<li>Cactus, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WHD#NYSE">WHD</a>), up 31%</li>
<li>Aemetis, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMTX#NASDAQ">AMTX</a>), up 30%</li>
<li>Newpark Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NR#NYSE">NR</a>), up 27%. </li>
</ul>
Industrials: A positive contributions also came from industrial small-cap stocks. 
<ul>
<li>CIRCOR International, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIR#NYSE">CIR</a>) climbed 65%,</li>
<li>Energy Vault Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRGV#NYSE">NRGV</a>) rose 35% </li>
<li>Quanex Building Products Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NX#NYSE">NX</a>) was up 29%</li>
</ul>
Diversified Health Care Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DHC#NASDAQ">DHC</a>), a real estate investment trust (REIT) that focuses on investing in healthcare-related properties, was the Russell 2000&#8217;s best-performing stock in June, climbing 86% month to date. 
The small cap with the highest year-to-date return is Applied Digital Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APLD#NASDAQ">APLD</a>) with a nearly 400% gain. 
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Photo: Shutterstock

Small Cap Analysis

Startups

Small Business

Movers

AMTX

APLD

SPDR Dow Jones Industrial Average ETF Trust

FFWM

HMST

NRGV

Small Caps Gain Momentum In June, Potential Trend Reversal: Russell 2000 Top Performing Stocks

The surge of artificial intelligence (AI),&nbsp;the supremacy&nbsp;of the internet giants and expectations of the Fed&#39;s tightening cycle nearing its end are propelling growth companies <a href="https://www.benzinga.com/money/best-value-stocks" target="_blank">to outperform value stocks</a>.
The<a href="https://www.benzinga.com/money/best-growth-stocks" target="_blank"> growth equity style</a> has made a remarkable recovery in the first five months of 2023, after experiencing a setback in 2022 due to aggressive interest rate hikes that impacted tech and other overvalued sectors.
The Vanguard Growth ETF&nbsp;(ARCA: VUG) has outperformed the Vanguard Value ETF (ARCA: VTV) by a remarkable 29% so far this year. While the growth-oriented ETF has risen 26%, the value-oriented ETF has struggled, registering a 3% decline year to date.&nbsp;
Only a month&nbsp;ago, the <a href="https://www.benzinga.com/etfs/sector-etfs/23/05/32397681/us-value-stocks-trail-growth-stocks-by-an-alarming-8-in-2023-why-is-the-value-style-underperform" target="_blank">performance gap between growth and value was about 8%</a>, which can offer an idea of how rapidly growth-related companies have surged&nbsp;in recent weeks.
<h3>Growth vs. Value in 2023</h3>
<img alt="" src="https://www.benzinga.com/files/u1363475/vtv_2023-06-01_17-33-26_b1a6b.png" style="height:500px; width:100%" />
<h3>Value&#39;s 2022 Outperformance vs. Growth: Wiped Out in 5 Months</h3>
The roughly 50% gain that value stocks had over growth in 2022 was almost entirely wiped out by the growth&#39;s outperformance in the just&nbsp;five months of 2023.
Since the Great Financial Crisis, the consistent outperformance of growth&nbsp;versus value stocks has been a recurrent trend in the U.S.&nbsp;stock market. This tendency has been supported by a protracted period of very low interest rates, which has pushed up valuations&nbsp;in the technology and growth sectors while depressing stocks&nbsp;in&nbsp;value-related sectors.
The year 2022 looked to suggest a potential reversal of this pattern, with energy stocks rising sharply and technology-related stocks falling precipitously. However, this reversal was short-lived, as growth stocks reasserted their dominance in 2023, supported by a robust surge in AI and tech stocks.
Chart: 15 Years Of Value Vs Growth
<img alt="" src="https://www.benzinga.com/files/u1363475/vtv_vug_2023-06-01_17-50-30_d21d4.png" style="height:500px; width:100%" />
<h3>Stock Movers: Gainers And Losers</h3>
About 70% of the Vanguard Growth ETF&#39;s year-to-date performance can be attributed to seven stocks: Apple, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) added 4.7 percentage points (ppt) to the overall performance
<ul>
<li>Microsoft Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msf#NASDAQ">MSF</a>) 4.2ppt</li>
<li>NVIDIA Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>)&nbsp;2.7ppt</li>
<li>Alphabet Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>) (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) 2.2ppt</li>
<li>Amazon Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) 1.9ppt</li>
<li>Tesla Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) 1.2ppt</li>
<li>Meta Platforms Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>) 1ppt.</li>
</ul>
The Vanguard Value ETF saw negative contributions from financials, health care and energy sectors with First Republic Bank, Pfizer Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>), Johson &amp; Johnson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>),&nbsp;Charles Schwab Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schw#NYSE">SCHW</a>), Chevron Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>) and Bank of America (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bac#NYSE">BAC</a>)&nbsp;being the worst contributors to the performance.
Image: Shutterstock

Specialty ETFs

Movers & Shakers

Economics

General

SCHW

TSLA

AI, Tech Fuel Rebound Of Vanguard Growth ETF, Eroding Value's 2022 Outperformance

During Thursday&#39;s broadcast of Benzinga&#39;s <a href="https://www.benzinga.com/premarket-prep/" target="_blank">&quot;PreMarket Prep&quot;</a>&nbsp;show,&nbsp;Christian Fromhertz, CEO of Tribeca Trading Group,&nbsp;said &quot;this is a day trader&#39;s market right now&quot;&nbsp;given the exceptional volatility seen in the last week.&nbsp;
Fromhertz On Market Landscape: <a href="https://www.benzinga.com/m-a/23/03/31385666/first-republic-rallies-as-major-us-banks-pledge-assistance-to-calm-markets">The banking crisis</a> will take some time to resolve, which might imply that policy overtightening&nbsp;by central banks could&nbsp;have reached its peak, Fromhertz said.&nbsp;
We are moving from an inflationary to&nbsp;deflationary environment, and this may be an attractive background for growth and tech companies, he said.&nbsp;
Recent price declines in oil crude and copper &mdash; two cyclical commodities tied to the health of the economy &mdash; essentially reflect a demand drop, which is what the central bank aimed for, the Tribeca Trading CEO said.&nbsp;
&quot;As all these things settle down, we start to see the light at the end of the tunnel,&quot; he said.&quot; &quot;Take what the market is giving you, which are day trading opportunities.&quot;
Fromhertz said he maintains his bullish stance on the semiconductor industry, which he said&nbsp;may be bought on dips.
The iShares Semiconductor ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/soxx#NASDAQ">SOXX</a>) has surged 3% over&nbsp;the last week and is now up 22% year-to-date.
<img alt="" src="https://www.benzinga.com/files/u1363475/soxx_2023-03-16_18-46-35_979b4.png" style="height:573px; width:760px" />Chart: TradingView
<h3>Growth Stocks Outperform Value In 2023</h3>
From the start of the year, growth stocks, as tracked by the iShares Russell 1000 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwf#NYSE">IWF</a>), have outpaced value equities, as tracked by the iShares Russell 1000 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwd#NYSE">IWD</a>), by 12%.
After being battered by the inflation-rate rise story in 2022, the IWF/IWD ratio, which reflects the relative strength of growth against value stocks, is practically flat from a year ago.
<img alt="" src="https://www.benzinga.com/files/u1363475/iwf_iwd_2023-03-16_18-44-51_ff180.png" style="height:573px; width:760px" />Growth vs. Value: Chart via TradingView.
Watch Thursday&#39;s &quot;PreMarket Prep&quot; episode here:
<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" frameborder="0" height="315" src="https://www.youtube.com/embed/IbVfmsFhxhE" width="560"></iframe>
Photo via Shutterstock.

Interview

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

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On <a href="https://www.cnbc.com/video/2021/07/08/final-trades-boeing-uber-invitation-homes-more.html">CNBC&#39;s &quot;Fast Money Halftime Report,&quot;</a> Stephen Weiss said he added to his Boeing Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) position. He thinks it has found support and it is going to trade higher.
Liz Young is a buyer of iShares Russell 1000 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwd#NYSE">IWD</a>).
Sarat Sethi likes Uber Technologies Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uber#NYSE">UBER</a>) and he would buy more at these levels.
Josh Brown said Invitation Homes Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/invh#NYSE">INVH</a>) is one of his favorite REIT stocks. He would be a buyer.

INVH

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Market Rebellion Co-Founder Jon Najarian likes NVIDIA Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>).
Loop Capital&#39;s Kourtney Gibson likes Eli Lilly and Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lly#NYSE">LLY</a>).
Ritholtz Wealth Management CEO Josh Brown likes Uber Technologies, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uber#NYSE">UBER</a>).
UBS Private Wealth Management Rob Sechan likes iShares Russell 1000 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwd#NYSE">IWD</a>).

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It can be said that value is in the eye of the beholder, but there probably isn&#39;t a practical universe in which Beyond Meat (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bynd#NASDAQ">BYND</a>) stock is considered value fare.
Value stocks typically don&#39;t rise 71% in less than a month as Beyond Meat shares have done so to start 2020. For those that need more convincing this stock isn&#39;t more expensive, there&#39;s the following data <a href="https://www.morningstar.com/stocks/xnas/bynd/quote">courtesy of Morningstar</a>: a price-to-sales ratio of 28.62 times, a price-to-book ratio of 17.82 times and a jaw-dropping forward price-to-earnings ratio of 416.67 times.
The research firm classifies Beyond Meat as a mid-cap growth stock, yet here we are discussing the stock&#39;s appearance in not one, but several value exchange traded funds.
To be fair, the following funds don&#39;t necessarily have significant Beyond Meat exposure on a percentage basis. Few ETFs do, but some of these products are value funds and are among the largest shareholders in Beyond Meat, a stock that clearly isn&#39;t a value proposition.
<h3>iShares Russell 1000 Value ETF (IWD)</h3>
The iShares Russell 1000 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwd#NYSE">IWD</a>) tracks the Russell 1000 Value Index, the value offshoot of the popular Russell 1000, and holds 764 stocks. Beyond Meat represents a scant <a href="https://www.ishares.com/us/products/239708/?referrer=tickerSearch">0.03% of this ETF&#39;s weight</a>, but this fund does hold nearly 136,000 shares of the stock. On that basis, IWD is one of the largest ETF owners of Beyond Meat and, as its name implies, is a value fund.
See Also: <a href="https://www.benzinga.com/news/20/01/15161024/beyond-meat-shares-surge-as-starbucks-looks-towards-plant-options-in-carbon-pledge">Beyond Meat Shares Surge As Starbucks Looks Towards Plant Options In Carbon Pledge</a>
<h3>iShares Russell Mid-Cap Value ETF (IWS)</h3>
I thought I said Morningstar classifies beyond as a mid-cap growth stock? I did, but here it is appearing in the iShares Russell Mid-Cap Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iws#NYSE">IWS</a>), which is supposed to be a mid-cap value fund.
The $12 billion IWS follows the Russell MidCap Value Index and holds 631 stocks, none of which exceed weights of 0.90%, so its fair to say Beyond Meat doesn&#39;t dominate this fund. It doesn&#39;t. Not at <a href="https://www.ishares.com/us/products/239719/?referrer=tickerSearch">weight of 0.10%</a>, but the stock&#39;s residence in this ETF is still quixotic at best.
<h3>Vanguard Small-Cap Value ETF (VBR)</h3>
This is where things get really interesting. The Vanguard Small-Cap Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vbr#NYSE">VBR</a>) is a fine fund, but for those who believe in small-cap territory ending in the $2 billion to $2.5 billion, VBR is a violator with a median market value of $4.2 billion, but even that&#39;s a far cry from Beyond Meat&#39;s $7.71 billion market value.
No matter how liberal the application of &ldquo;small cap&rdquo; is, it&#39;s hard to call Beyond Meat a small-cap stock, let alone one with the value designation. Yet somehow someway, VBR owns more shares of Beyond Meat (nearly 308,000) than any other ETF.
<h3>Vanguard Russell 1000 Value ETF (VONV)</h3>
See the commentary on IWD because VONV also tracks the Russel 1000 Value Index.

Long Ideas

BYND

iShares Trust Russell MidCap Value Index Fund

VONV

4 ETFs You Won't Believe Hold Beyond Meat Stock

Growth stocks and the related exchange traded funds took their lumps in May, but year to date, the iShares Russell 1000 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwf#NYSE">IWF</a>) is higher by 18.40 percent, an advantage of 530 basis points over the iShares Russell 1000 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwd#NYSE">IWD</a>).
IWF is beating the iShares Russell 1000 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwb#NYSE">IWB</a>) by 270 basis points.
<h3>What To Know</h3>
Growth stocks, including those residing in ETFs like IWF, usually command higher multiples than value equivalents or the broader market. Hence, the growth designation. Those premiums are usually persistent, but growth&#39;s outperformance of value is lengthy by historical standards, though some of that outperformance is attributable to growth often topping value following recessions.
&ldquo;Growth&rsquo;s recent out-performance conforms to the post-crisis norm,&rdquo; <a href="https://www.blackrockblog.com/2019/06/07/growth-premium-steady/">said BlackRock in a recent note</a>. &ldquo;Focusing on price returns, since 2010 growth has outperformed value by an average of approximately 350 bps a year. The outperformance has not only been meaningful, it has been consistent. During the past five years value has only outperformed meaningfully on one occasion, 2016.&rdquo;
Over the past three years, IWF is up 58.10 percent while IWD, the value ETF, is higher by 29.90 percent.
<h3>Why It&#39;s Important</h3>
As is often discussed with growth ETFs, the technology sector is a prime determinant of the growth factor&#39;s returns. IWF allocates over a third of its weight to technology stocks compared to 21.45 percent in the Russell 1000 Index.
&ldquo;As others have noted, a large part of growth&rsquo;s winning streak can be attributed to stellar earnings growth, particularly from technology companies,&rdquo; said BlackRock. &ldquo;That said, multiple expansion, i.e. paying more for a dollar of earnings, has played a part as well. Since the 2011 market bottom, the trailing price-to-earnings (P/E) ratio for the Russell 1000 Growth Index is up roughly 65%. In contrast, the value index&rsquo;s P/E ratio has expanded by a more modest 40%.&rdquo;
With the overweight in technology stocks, IWF&#39;s annualized volatility over the past three years was 14.40 percent, but that was just 180 basis points higher than the same metric on the Russell 1000 Index.
<h3>What&#39;s Next</h3>
For growth investors or those considering IWF, the good news is, on valuation, growth is not expensive relative to historical norms. It simply looks pricey relative to value because value is trading well below its usual multiples.
&ldquo;But while growth stocks are not particularly cheap, it is not obvious that they are expensive,&rdquo; said BlackRock. &ldquo;Valuations are slightly below the long-term average. In other words, the fact that growth looks stretched relative to value is not a function of growth being particularly rich but value being very cheap.&rdquo;
Related Links:
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