Not every investor is willing to do what it takes to perform a Benjamin Graham-style analysis of equities to determine if a good value opportunity exists. That’s where a new value investing app comes into play, which caters to experienced and novice investors.
“Dr. Yinon Arieli, an experienced value investor, has launched a new mobile App that helps stock market investors discover winning stock ideas on Wall Street,” a press release noted. “While many services provide stock market advice, most are short-term oriented. As a seasoned investor with decades of experience, Dr. Arieli has helped thousands of investors by focusing on ‘value investing’ – a strategy that looks at the long-term value of businesses and their assets. This has enabled him to consistently beat the market since 2004.”
“The concept of ‘value investing’ is not new,” the released added further. “In fact, it is a strategy used by some of the world’s most famous investors, including Warren Buffet. The main principle of ‘value investing’ relies on the fact that a company is worth more when it earns more. The challenge is finding the stocks of companies that are temporarily being traded below their fair value. This could happen for many reasons: from the departure of a key executive to a media scandal, to a healthcare crisis like Covid-19. When investors buy these stocks, there’s a higher chance to beat the market and produce exceptionally high returns.”
Searching for Value
For ETF investors looking for value plays, one ETF play that’s worth a look involves sifting through the Nasdaq to find value via the Principal Contrarian Value Index ETF (PVAL). PVAL seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq U.S. Contrarian Value Index (the “index”).
Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that compose the index at the time of purchase. The index uses a quantitative model designed to identify equity securities in the Nasdaq US Large Mid Cap Index (the “parent index”) that appear to be undervalued by the market relative to their fundamental value.
Another option to consider is the American Century STOXX U.S. Quality Value ETF (VALQ). VALQ seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the iSTOXX® American Century USA Quality Value Index (the underlying index). Under normal market conditions, the fund invests at least 80% of its assets in the component securities of the underlying index. The underlying index is designed to select securities of large- and mid-capitalization companies that are undervalued or have a sustainable income.
One more value-titled fund to consider is the Invesco Dynamic Large Cap Value ETF (PWV). PWVseeks to track the investment results (before fees and expenses) of the Dynamic Large Cap Value IntellidexSM Index. The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying intellidex. The underlying intellidex is composed of large-capitalization U.S. value stocks that the Intellidex Provider includes principally on the basis of their capital appreciation potential.
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