These value ETFs set you up for portfolio gains

Article Excerpt

As their name implies, value stocks trade lower than their fundamentals would suggest. Investors perceive them as undervalued with the potential to rise. Even so, it’s best for you to zero in on the shares of quality companies with a consistent history of sales and earnings (or the ETFs that hold them). A strong grasp on a growing clientele is another plus. Here are three ETF buys. Each exposes you to a portfolio of stocks selected for their low valuations. (There is more information in the supplement on page 110.) VANGUARD U.S. VALUE ETF $108.72 (New York symbol VTV; TSINetwork ETF Rating: Conservative; Market cap: $82.5 billion) offers investors exposure to large U.S. companies with low valuations. The fund picks stocks from a broad universe of companies operating across several sectors and industries. Only stocks with the lowest price-to-book-value, forward and trailing price/earnings ratios, dividend yield, and price/sales ratios qualify for inclusion. The ETF’s main industry segments are: Financials (22.2% of assets), Healthcare (18.3%), Consumer Defensive…

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