Stockchase Opinions

Stan Wong Vanguard Global Value Factor ETF VVL-T PAST TOP PICK Feb 14, 2023

(A Top Pick Feb 24/22, Up 9%)

Value has been outperforming the MSCI world index. This holds a variety of value stocks, 68% in the US and the rest ex-USA.

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Stock price when the opinion was issued

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TOP PICK

Feels the value will continue to outperform growth going forward. It seriously outperformed growth in 2016 and he thinks that will continue. An actively managed ETF using a rules-based or quantitative type strategy that aims to select global equities with value characteristics. Right now, this carries a very large weighting in the US financial sector. In the last 6 months, it has outperformed against the world Index by over 10%.

TOP PICK

This product has done remarkably well since it was launched. It is less than a year old and is up an incredible amount. People really need to think globally and to invest in value stocks in small company stocks. A great way to get global stocks and with a value bent.

COMMENT

Long-term hold? Instead of using this, you should be looking a little more at the fundamentals. This ETF is pretty small. There are a lot of Factor ETF’s out there, and he is not convinced fully that they are any better than the index based. He likes to keep costs low. Wouldn’t mind it, but probably wouldn’t want it for a long-term hold.

PAST TOP PICK

(A Top Pick Jan 13/17. Up 21%.) Invested in a diversified basket of global stocks, with mainly value metrics, with the idea of being careful about not being all about growth companies. Value stocks will start to outpace growth stocks as interest rates move higher.

COMMENT

A lot of money is flowing into ETF's, and they are buying the indexes. However, the things moving the indexes, for example the emerging-market market, are things like TENCENT (TCEHY-5) and Ali Baba (BABA-N). Those portions are being heavily bought, because you don't just have Vanguard buying their stocks, you have all companies that are needing global exposure, buying the same stocks. As they keep getting more and more capital, they keep buying more of the same stocks. If we get a correction stocks are going to sell en masse. He would rather pick individual stocks.

TOP PICK

It is an ETF for the globe, almost every country. It is actively managed. This is a good play for the entire globe.

PAST TOP PICK
(A Top Pick Oct 18/18, Down 9%) A very long-term hold. Still believes the value factor will reward long term investors. In the current environment it make sense to really consider pure passive index as your primary equity exposure instead.
DON'T BUY
This includes a lot of Energy stocks and financials. When global growth is stressed, these will underperform.
TOP PICK
Investors are overweight growth, but underweight value. With interest rates rising, value can outperform growth going forward. Nice broad basket of global equities deemed to have low prices relative to fundamental value when you compare price to book, earnings, and cashflow. In 2021, it outpaced the benchmark by over 10%, and this should continue. Top names include CVS, DOW, COP, GM, FDX. Yield is 1.5%.