ETF Talk

Investing in Large-Cap and Value Stocks in a Growth Environment

Exchange-traded funds (ETFs) such as the Vanguard Value ETF (VTV), allow investors to access multiple stocks deemed to be “undervalued” by the market while requiring minimal personal research.

Buying undervalued investments is called “value investing,” a time-honored strategy that has been employed by conservative investors for many years. Brought to the forefront of investors’ awareness by well-known investor and author Benjamin Graham and his classic book “The Intelligent Investor,” value investing uses fundamental analysis to determine when stocks are potentially undervalued by the market, making them ripe to rise when that irrationality is resolved.

By contrast, growth investing aims to pick stocks that have demonstrated better-than-average gains in earnings and are expected to keep delivering high levels of profit growth. But there are no guarantees. As a result, growth stocks tend to be more volatile than their value-based counterparts.

Click here to read the rest of the article on stockinvestor.com, “Investing in Large-Cap and Value Stocks in a Growth Environment.


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