ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Core Strategies Channel
  2. FLV Is Phenomenal for Value Exposure
Core Strategies Channel
Share

FLV Is Phenomenal for Value Exposure

Tom LydonFeb 17, 2022
2022-02-17

Broadly speaking, value stocks are performing admirably to start 2022, and that’s good news for the related exchange traded funds. However, while there are hundreds of value ETFs on the market today, investors should recognize that these products aren’t all cut of the same cloth.

For investors seeking large-cap value exposure, the American Century Focused Large Cap Value ETF (FLV B) stands out as a valid consideration. Year-to-date, FLV is topping the the Russell 1000 Value Index — the benchmark that FLV seeks to beat — by about 130 basis points.

“But choosing a value fund isn’t as simple as throwing a dart at this list. Don’t over-rely on a fund’s category placement to tell you everything you need to know; there’s a good deal of variety among strategies in the large-value category,” says Morningstar’s Susan Dziubinski.

FLV’s methodology is relevant to long-term investors. While some passively managed value ETFs simply focus on stocks that are cheap as measured by price-to-book and price-to-earnings ratios, that way of doing things can potentially expose investors to value traps.

Conversely, FLV’s active management not only unearths companies selling at a discount to fair value, it identifies quality stocks. That’s important because when value stocks rallied last year, a lot of “junky” names contributed to that upside. Today, markets are demanding higher quality and profitability, indicating that FLV could be a better, lower-volatility mousetrap for investors seeking value exposure this year.

“Some value funds, for instance, place a greater emphasis on dividend-paying stocks than others. (And not all dividend-seekers are alike. Several favor high-yielding stocks, while many prefer dividend growers carrying lower yields.) Other large-value funds don’t have dividends on the brain—income is secondary, if it’s considered at all. Those preferences can lead to different performance and risk profiles,” adds Dziubinski.

Regarding dividends, FLV yields 1.58%, and several of its top 10 holdings have enviable dividend growth capabilities. On that note, the American Century ETF allocates 64% of its weight to financial services, healthcare, and consumer staples stocks. The latter two sectors are among the most reliable dividend growth groups in the U.S. while financial stocks are resuming payout growth and provide FLV investors with an avenue for capitalizing on rising interest rates.

The $228 million FLV also allocates 12% of its weight to ex-U.S. stocks, introducing some international value to the fund’s proposition.

For more news, information, and strategy, visit the Core Strategies Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X