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The Growth vs Value Debate – Which one does Mr. Market love more? 

Apr 10, 2019

 

Better Research, Better Investments.Better Research, Better Investments.
Better Research, Better Investments.Better Research, Better Investments.

 

  • The strong 4Q inflows into Growth and Value ETFs reversed in 1Q2019 with nearly $7.5 billion flowing out of some of the most liquid Growth & Value ETFs we track. 
     
  • The reversal in Value ETFs is most noticeable to us given the fact that $8.7 billion flowed into the liquid Value ETFs we track. 
     
  • Net, $3.5 billion has flowed into Value ETFs for the last 2 quarters. 
     
  • Notable shifts in flows where in the iShares S&P 500 Value ETF (IVE) and iShares Russell 1000 Value ETF (IWD).  IVE has a "Buy" trading signal according to our Quantamize models with a "Caution" Smart Beta Rating.  IWD has a "Sell" trading signal according to our Quantamize models with a "Caution" Smart Beta Rating.   
     
  • In comparison, while the absolute flows into Growth ETFs have not been as large as Value ETFs, the net effect has been more pronounced with about $86 million flowing out of the liquid Growth ETFs we follow 
     
  • iShares Russell 1000 Growth (IWF) is one ETF that sticks out to use with nearly $470 million flowing out.  IWD has a "Buy" trading signal according to our Quantamize models with a "Caution" Smart Bet Rating. 
     
  • Is Value really less loved than Growth?  Not if you look at more than one quarter... 

 

Value Fund Flows 

Ticker Name 4Q18 Fund Flows 1Q19 Fund Flows
SLYV SPDR S&P600 Value (73,360,615) 255,985,163
SCHV Schwab Large-Cap Value 494,616,932 561,149,667
IJJ iShares S&P Midcap 400 Value 417,566,275 99,256,690
IVE iShares S&P500 Value 1,762,320,132 (1,288,576,330)
IWN iShares Russell 2000 Value 447,674,315 (547,716,520)
FTA First Trust Large-Cap Value AlphaDEX (4,163,191) 26,487,403
VONV Vanguard Russell 1K Value 10,058,500 19,625,000
IWD iShares Russell 1000 Value 4,937,320,354 (3,814,408,845)
MGV Vanguard MegaCap 300 Value 106,619,000 109,304,236
QVAL Alpha Architect US Quant Value (17,269,500) 3,281,000
VLUE iShares Edge MSCI US Value Factor 381,490,453 (343,311,205)
VOE Vanguard MidCap Value (195,740,995) 35,441,422
IWS iShares Russell Midcap Value 633,093,466 (324,051,860)
VBR Vanguard SmallCap Value (7,971,739) 79,155,780
IUSV iShares Core S&P Value (234,618,628) (53,066,725)
Total inflow/outflow 8,657,634,759 (5,181,445,126)

 

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

Growth Fund Flows 

Ticker Name 4Q18 Fund Flows 1Q19 Fund Flows
VBK Vanguard Small-Cap Growth ETF (18,121,717) (16,671,577)
IUSG iShares Core S&P US Growth 466,113,499 (236,932,305)
IWF iShares Russell 1000 Growth 1,409,714,090 (1,879,674,390)
VUG Vanguard Growth 689,481,927 407,723,274
VOOG Vanguard S&P500 Growth 53,292,250 60,310,750
VONG Vanguard Russell 1K Growth 29,318,250 107,163,750
IJK iShares S&P MidCap Growth 140,106,247 (324,383,195)
MGK Vanguard Mega-Cap 300 Growth (12,592,500) 7,940,250
IVW iShares S&P 500 Growth ETF 793,372,731 (643,174,175)
IWO iShares Russell 2000 Growth (631,216,959) (517,287,160)
IJT iShares S&P 600 Growth (283,787,265) (217,273,490)
IWY Russell Top 200 Growth 106,206,267 78,049,620
SCHG Schwab Large-Cap Growth (58,184,745) 401,560,909
MDYG SPDR S&P 400 Growth (1,855,556) 335,554,606
VOT Vanguard MidCap Growth (166,991,184) 16,562,840
JKE MorningStar Large-Cap Growth 59,898,966 (61,537,935)
SLYG SPDR S&P 600 Growth (292,109,789) 113,061,081
Total inflow/outflow 2,282,644,512 (2,369,007,146)

 

 

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