Prediction: U.S. Value Stocks Will Outperform for 10 Years. Which ETFs Should You Buy?
These two popular Vanguard ETFs offer exposure to value stocks.
Overview
If you're looking for long-term investment gains, growth stocks aren't the only game in town. Recent market forecasts from Vanguard say U.S. value stocks (companies rated as undervalued compared to their fundamentals) might outperform U.S. growth stocks over the next 10 years.
Two popular Vanguard exchange-traded funds (ETFs) offer slightly different approaches to investing in value stocks. The Vanguard Small-Cap Value ETF (NYSEMKT: VBR) is passively managed, low-cost, and tracks an index of small companies. The Vanguard U.S. Value Factor ETF (NYSEMKT: VFVA) is an actively managed fund in which -- for a slightly higher fee -- professional investment managers choose a mix of undervalued stocks to include in the portfolio.
Details
Both of these value ETFs have outperformed the S&P 500 index and the tech-heavy Nasdaq-100 in the past year.
Source
Originally published at www.fool.com.