4 valuable ETFs that every investor needs
4 valuable ETFs that every investor needs
Every investor likes to make a bargain on the stock exchange. But not every investor wants to spend his time and energy searching and finding these bargains. Fortunately, we are living in the era of the ETFs and there are also ETFs that are looking for the cheapest shares on the stock market.
Value investing or value investing is the strategy that made one of the world's best investors one of the world's richest people. The founder of value investing is Benjamin Graham. He was the teacher of that rich man, Warren Buffett.
Value stocks are shares where the market forgets how valuable they are. Investing in value equities is one of the few strategies that has proven its worth on the stock market for decades. Every investor should therefore, at least in part, invest in value.
To make it easy for investors, there are also some interesting value ETFs.
The 4 best value ETFs
iShares Russell 1000 Value
This is the largest value ETF. This ETF invests in shares from the Russell 1000 Value index that focuses on companies with a low price / book value. There are currently around 700 shares in the ETF.
In the last 10 years, the iShares Russell 1000 Value has produced an average return of 7.6% per year. You also receive more than 2% dividend yield.
Vanguard Value
The Vanguard Value ETF follows the CRSP U.S. Large Cap Value index where 300 companies are listed. The index looks at parameters such as the price / book value, future and historical profit figures, dividend yield and price / sales ratio.
Over the past 10 years, the Vanguard Value ETF has generated an average return of 8.4% per year with a dividend yield of 2.5%.
Vanguard Small-Cap Value
This ETF follows the CRSP U.S. Small Cap Value index with about 900 small companies. The parameters are the same, but this ETF focuses on smaller smallcap stocks.
Over the past 10 years, the Vanguard Small-Cap Value ETF has produced an average yield of 10.3% per year with a dividend yield of 2%.
iShares Russell Mid-Cap Value
IShares also has a value ETF that focuses on medium-sized companies. One looks at the Russell 1000 Index and deletes the 200 largest and 200 smallest companies. This leaves 600 Mid-Cap shares.
Over the last 10 years, the iShares Russell Mid-Cap Value has produced an average return of 9.6% per year with a dividend yield of around 2%.
Source: Fool
Good list, thanks for the report.