Value Stocks

Example of Value Stocks

As of June 2019, large money center banks represent value stocks. Bank of America Corporation (BAC), JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), and Citigroup Inc. (C) all trade at a significant discount to the market based on earnings. For example, Citigroup has a P/E ratio of 9.67 compared to 19.12 for the average S&P 500 company.

Investors can gain exposure to a portfolio of value stocks using exchange-traded funds (ETFs). Three of the largest value ETFs based on assets under management (AUM) include the Vanguard Value Index Fund ETF (VTV), the iShares Russell 1000 Value ETF (IWD), and the iShares S&P 500 Value ETF (IVE). All three funds are specifically designed to track the price and yield performance of U.S. large-cap value stocks.

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