It has been brutal recently in the markets. Many have turned to the once laughed at value system of exchange-traded funds having had burnt fingers recently. Value investing has likely done well recently as there will always be bargains in falling markets. Now you guys know I am all about using ETFs to reduce my headaches, instead of shuffling through pages and texts and WhatsApp groups, few people know there are event ETFs geared towards value investing.
Value-centric ETFs invest in securities with relatively low price to earnings ratios. These guys have done great while the markets have been bleeding. Coupled with the generally low costs of ETFs it is a much more comfortable way to structure a portfolio that is resilient and can take advantage of these times.
What’s that? You want to hear some examples of these so you can research them some more? Ok.
XLE (Energy Select Sector SPDR fund) – Year to Date – 37.52%, 1 week 6.09%, 4 weeks 18.81%, 1 year 63.78%
DVY (iShares Select Dividend ETF) – YTD – 15.85%, 1 week 3.51%, 4 weeks 8.21%, 1 year 37.82%
IWS (iShares Russell Midcap value ETF) – YTD – 10.76%, 1 week 1.29%, 4 week 4.12%, 1 year 47.08%
These 3 ETFs are available on TroveApp and you can use the wealth of resources in there to further your research.
So as you can see, with numbers like this, I am not bothered when people are making 1000% returns taking risks on Gamestock and meme stocks. I choose a steadier approach, one which allows me time to do other things and not bother much where the market is daily. A good portfolio will weather the storms, to dip but rise again, and I just keep consistently investing.
Also if you want more of these types of idea generation and explanations with more information on how to understand the basics of how to use ETFs to build strong portfolios that give a better chance of a lower-cost passive investing journey, you may sign up for FREE newsletters at YouBackYou
Ps: This is not investment advice but purely for education and enlightenment. Full disclosure, I do own BLCN and intend to buy more in the future.
