Investing with Exchange-Traded Funds Made Easy: A Start-to-Finish Plan to Reduce Costs and Achieve Higher Returns, Second Edition

Chapter 9. Boring Bargains or Hot Prospects? Choosing between Growth and Value ETFs

Every time you can figure out an additional way to differentiate winners from losers in the stock market, you are creating investment opportunity for yourself. You learned in Chapter 8, “When to Live Large: An Asset Allocation Model for Small- versus Large-Cap ETFs,” that making the correct choice between large and small-cap ETFs was one way to earn an advantage over the broad stock market. This chapter examines another way to divide the universe of ETFs and pick the stronger group, this time between growth and value. The expenditure of the modest effort required to distinguish better times to be in growth from the better times to be in value can improve your returns ...