Is Value Still Relevant?
After underperforming growth for the past 13 years in the US*, many investors discarded value as outdated. That notion is now up for debate given the relative performance of these investment styles so far this year. Does value still matter? If yes, is it too late to reintroduce value in your portfolios?
In this video, Chris Mellor, Head of ETF Equity and Commodity Product Management, asks Rob Arnott, Founder and Chairman of the Board at Research Affiliates, for his thoughts on what is driving the current rotation into value securities and if they are still attractively priced. Other questions tackled include:
- Have growth companies been in a bubble that has now burst?
- Is value’s recovery linked to inflation and central bank policy?
- What sector of the equity market might investors want to consider?
- How does the approach used in the Invesco FTSE RAFI products differ from other value ETFs and how can they fit your portfolio?
*Source: Research Affiliates, LLC, 2021, based on data from Compustat, CRSP, Worldscope and Datastream.
For complete information on risks, refer to the legal documents.
The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.
This marketing communication contains information that is for discussion purposes only, and is intended only for professional investors in Switzerland, UK, Ireland, Portugal, Spain and Denmark. Marketing materials may only be distributed in other jurisdictions in compliance with private placement rules and local regulations.
Data as at 30 March 2022, unless otherwise stated.
By accepting this document you consent to communicating with us in English, unless you inform us otherwise.
For more information on our funds and the relevant risks, please refer to the share class-specific Key Investor Information Documents (available in local language), the Annual or Interim Reports, the Prospectus, and constituent documents, available from www.invesco.eu. A summary of investor rights is available in English from www.invescomanagementcompany.ie. The management company may terminate marketing arrangements.
This document is marketing material and is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
This document should not be considered financial advice. Persons interested in acquiring the fund should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences.
Any calculations and charts set out herein are indicative only, make certain assumptions and no guarantee is given that future performance or results will reflect the information herein.
For details on fees and other charges, please consult the prospectus, the KIID/KID and the supplement of each product.
UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.
The FTSE Research Affiliates indices are calculated by FTSE International Limited in conjunction with Research Affiliates LLC. FTSE International Limited or Research Affiliates LLC do not sponsor, endorse or promote these products. All copyright in the Index values and constituent list vests in FTSE International Limited. Invesco has obtained full license from FTSE International Limited to use such copyright in the creation of these products.“FTSE®” is trade mark of the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited under licence. “Research Affiliates” and “Fundamental Index” are trade marks of Research Affiliates.
The FTSE Research Affiliates Fundamental Index Series® weights index constituents using specific fundamental factors, rather than market capitalisation. Therefore, at review, constituent weights are not based on price valuations established by the market. The review of the FTSE RAFI Index Series and the calculation of the fundamental weighting of a company are carried out using the following factors as found in a company’s annual returns: Sales (averaged over the prior five years), Cash Flow (averaged over the prior five years), Book Value (at the review date), and Dividends (total dividend distributions averaged over the last five years).
For the full objectives and investment policy please consult the current prospectus.
The representative for the sub-funds of Invesco Markets III plc in Switzerland is Invesco Asset Management (Schweiz) AG, Talacker 34, 8001 Zurich. The representative for the sub-funds of Invesco Markets II plc in Switzerland, and the paying agent for the sub-funds across all of these platforms, is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich, Switzerland. The offering documents, articles of incorporation and annual and semi-annual reports may be obtained free of charge from the relevant representative in Switzerland. The ETFs are domiciled in Ireland.
This communication has been communicated by Invesco Investment Management Limited, Ground Floor, 2 Cumberland Place, Fenian Street, Dublin 2, Ireland, and Invesco Asset Management (Schweiz) AG, Talacker 34, 8001 Zurich, Switzerland.RO 2290112/2022