Now is a good time to brush up on value ETF education as volatility jumps and tech-led growth stocks fade.
Broadcom shares are down more than 9% today, and since the chipmaker is far more expensive than other big stocks, value investors should be taking this as a win and muttering about hubris before getting back to their balance sheet analysis. It turns out the biggest “value” ETF not only owns Broadcom, but has it as its largest holding. The point of value investing is to buy cheaper stocks, betting that eventually they will shine.