The Pure Value ETFdb Portfolio is now available to ETFdb Pro members with a free 7-day trial of the Pro subscription. This new portfolio, one of more than 40 all-ETF model portfolios available at ETFdb.com, is designed for investors who wish to achieve capital appreciation in their portfolios through diversified exposure across both domestic and foreign stocks and bonds. This investment strategy may appeal to those who wish to tap into a segment of the market that is currently undervalued and one that is poised to perform strongly in the future, offering investors a lucrative potential for profits.
Value securities have always been an appealing segment of the market, seeing as how they offer investors an opportunity to tap into companies that are currently priced at a relatively steep discount to their intrinsic value. Snatching up cheap stocks of companies that have sound fundamentals, like Ford and Marathon, can translate into big gains for value investors. Firms which are deemed to be value companies are generally more established companies that may be at or near maturity. Typically, these equities also exhibit low pricing multiples and offer relatively high dividend yields. It is important for investors following this strategy to recognize value firms as those that are incorrectly valued by the market, given their high quality; not all equities with low share prices are value companies.
The distinguishing feature of the Pure Value ETFdb Portfolio is that both its stock and bond component fall in line with our capital appreciation investment strategy. To achieve this objective, our portfolio focuses on “pure” value ETFs, which offer exposure to domestic, foreign developed, and emerging market equities that exhibit strong value characteristics like low pricing multiples. To complement our equity component, we have selected a corporate bond fund that targets below investment grade debt securities that were rated investment grade at the time of issuance. Our portfolio provides a unique risk/reward profile that is intended for investors looking to realize the diversification and enhancement benefits of a growth-focused investment strategy over the long-haul.
The complete Pure Value ETFdb Portfolio is available to ETFdb Pro members or with a free 7-day trial to ETFdb Pro. Also check out our new Pure Growth ETFdb Portfolio, as well as our King Dollar ETFdb Portfolio.
Also included with the ETFdb Pro subscription are more than 40 all-ETF model portfolios, including both retirement-focused and more tactical themed strategies. [To see all that is included, a free sample of the Emerging & Frontier Markets ETFdb Portfolio is available to all ETFdb readers]
Disclosure: No positions at time of writing.