RPV: 'Pure Value' Is Indeed More Value Than 'Value'
April 08, 2023
Summary
- Systematic value investors bet that a diversified portfolio of fundamentally “cheap” stocks should outperform a portfolio of “expensive” stocks over the long term.
- The Invesco S&P 500 Pure Value ETF tracks the S&P 500 Pure Value Index and was incepted in March 2006.
- Compared to other “smart-beta” value ETFs, RPV is a more aggressive value-strategy and only invests in the top 20% value stocks of the S&P 500 universe (currently 82 positions).
- With this methodology and three fundamental valuation ratios as value signals, the investment process underlying RPV incorporates several best-practices from the academic literature on the value-factor.
- RPV is well positioned in a value-peer group and (in my opinion) a very good instrument for investors seeking concentrated exposure to the value-factor.
- SA #18: RPV – ‘Pure Value’ Is Indeed More Value Than ‘Value’
- SA #17: IUSV – Transparent Value With Modest Active Risk
- SA #16: IWD – Low Growth Is Not Necessarily Value – Also For Large Caps
- SA #15: VLUE – Transparent Value With Little Industry Bets
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