When one thinks of "value" stocks, the immediate impression is that of a more conservative, undervalued stock that typically offers a higher yield. The SPDR S&P 500 Value ETF (NYSEARCA:SPYV), for example, has a P/E ratio of 16.3 and a dividend yield of 2.5%, compared to the P/E of 18.3 and dividend yield of 2.1% for the SPDR S&P 500 Trust ETF (NYSEARCA:SPY). It's a simplistic example, but the trend holds true for large caps, mid caps and small caps alike.
Deep value, however, should be considered riskier. It's really more of a turnaround play than a pure value play. Some of these turnaround stories play out, and some of them get worse before they get better (if they get better at all). While the P/E ratio for a deep value portfolio may be especially low, part of the reason for that could be that many stocks within the fund may have been beaten down by the economic environment.
Click the button below to read the rest of this original article on Seeking Alpha.
ETF Research
We cover ETFs across all sectors, regions and markets. We analyze the portfolios themselves as well as the macro environments that affect them.
Mutual Fund Research
We do mutual fund research too! Although not covered quite as in-depth as the ETF world, we've still profiled many of the big names!
Investing Strategy
Everything from retirement planning to 401(k) investing to options trading strategies and everything in between!
Next Steps...
Got a question? A comment? A fund you want to see profiled? Let us know!
