Wall Street has been on a rally this holiday season. The AI boom and lower rates have been driving the stock market higher. Here is a brief look at some ETFs that could surprise investors with big returns this Christmas.
The start of 2024 has been weak for the global stock market after a blockbuster 2023. Still, a few corners of the stock market are outperforming, pushing ETFs to new 52-week highs.
The Russell 1000 Value index surged 10.1% in October, beating its growth counterparts by 4.3 percentage points. The value outperformance spread is in the 96th percentile of outcomes since 1978, according to Bank of America, as quoted on CNBC.
Red-hot inflation and the resultant faster Fed rate hikes have made value investing a darling in 2022. Value stocks have a low price-to-book ratio (P/B)— a measure of the market cap relative to tangible assets.
High inflation levels, the aggressive stance of the Fed on interest rate hikes and the Russia-Ukraine war crisis have added to the market uncertainties in 2022.
The beaten-down prices have charged up investors to snap up ETFs on the cheap. Investors could definitely look to these products for outsized gains over the longer term.
Value stocks are less exposed to trending markets and their dividend payouts offer a safety shield during market turbulence. Against this backdrop, here are some top-ranked value ETFs that investors can consider betting on.
An accelerated coronavirus vaccine rollout, introduction of another round of fiscal stimulus and the reopening of U.S. economy are creating a conducive environment for value stocks to outperform their growth counterparts this year.
