𝗪𝗛𝗔𝗧'𝗦 𝗜𝗡 𝗢𝗨𝗥 𝗣𝗢𝗥𝗧𝗙𝗢𝗟𝗜𝗢?:
Dear Investors, on this edition we'll be shedding some light on $IUSV with our brief due diligence report.
This fund is a thematic play on U.S value stocks.
1. The fund has a strong exposure towards U.S. value stocks that are thought to be undervalued by the market relative to comparable companies.
2. Rising interest rates are the primary reason why the value stocks have staying power.
3. As growth stocks’ valuations depend on future returns, rising rates will raise the bar on the expected profits needed to justify the growth stock prices. However, value stocks typically base their valuations on current cash flow, thus rising rates will not have the same impact.
4. At the same time, many traditional value sectors such as financials actually benefit from rising rates.
5. As we expect 10-year treasury yields to continue on an uptrend, a rotation from growth to value stocks is expected.
6. The Fund's top holdings include: $BRK.B (Berkshire Hathaway Inc), $JPM (JPMorgan Chase & Co), $DIS (Walt Disney), $BAC (Bank of America Corp) and many more!
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