Zacks Value Investor Highlights: Guggenheim S&P 500 Pure Value, SPDR S&P 600 Small Cap Value, Vanguard Small Cap Value, First Trust Large-Cap Value AlphaDEX And Powershares S&P 500 Value With Momentum

For Immediate Release

Chicago, IL – September 22, 2017 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

(https://www.zacks.com/stock/news/276527/how-to-use-etfs-to-buy-value-stocks )

How to Use ETFs to Buy Value Stocks

Welcome to Episode #60 of the Value Investor Podcast

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.

Recently, Tracey has been getting some inquiries about how value investors can use ETFs to buy stocks, instead of just buying the individual shares.

With growth stocks still in favor, now is a good time for investors to look at their value options.

Why Buy ETFs?

1. ETFs allow for more diversification and can lower investing risk. Instead of just owning one community bank in Michigan or Wisconsin, you can own a basket of them through an ETF. And then, if something goes wrong at one of them, you’re at least a little insulated from the shock.

2. ETFs can also help investors control their emotions. It doesn’t remove emotions completely from the equation, but not too many investors get attached to, say, the S&P 500 ETF the same way they can to individual stocks.

3. ETFs can also be a good building block for a portfolio because if you do one that tracks a large market index like the S&P 500, you’re getting more overall market exposure.

How to Choose an ETF

There are some value ETFs that attempt to be classic value plays, with low P/Es, P/S, and P/B ratios. But, as we know, there aren’t that many stocks that qualify as classic value right now.

Therefore, many ETFs buy value stocks which also have a growth component.

If you want a classic value play, you may be interested in Guggenheim’s Pure Value ETFs. For those who want some growth stocks thrown in the mix, then the SPDR or Vanguard ETFs may be the right ones.

Know what you own. Don’t just buy an ETF because it says “value” in its name. Each one is different. You may be surprised at what the ETF actually holds.

Additionally, don’t forget to look at expense ratios as well. If you’re a long-term investor, paying 0.7% a year in expenses can really eat into returns.

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App

5 ETFs for Value Investors

1. Guggenheim S&P 500 Pure Value ETF (NYSE: Zacks Investment Research

Written By: Zacks Investment Research