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A Value ETF That's Returned 785% During The Bull Market

March 7, 2018 9:52 am
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March 10 is right around the corner, meaning the next anniversary of one of the longest bull markets in U.S. history is rapidly approaching. Plenty of exchange traded funds have offered staggering returns since March 10, 2009.

The two best-performing non-leveraged ETFs since the start of the bull market are industry funds — both are internet ETFs — but numerous broad market ETFs have delivered stellar returns as well. The leader of that pack is the Guggenheim S&P 500 Pure Value ETF (NYSE:RPV).

RPV, which turned 12 earlier this month, tracks the S&P 500 Pure Style Value Index. The index “measures value in separate dimensions across three risk factors: book value to price ratio, earnings to price ratio and sales to price ratio,” according to Guggenheim.

Jaw-Dropping Returns

From the start of the current bull market through March 5, 2018, RPV delivered average annualized gains of 27.47 percent, according to Morningstar data. Over that period, RPV's cumulative return is a stunning 785.72 percent.

Of the top 10 non-leveraged ETFs over the course of this bull market, eight are sector or industry funds. RPV and its stablemate and small-cap counterpart, the Guggenheim S&P SmallCap 600 Pure Value ETF (NYSE:RZV), are the only two broad market funds in the top 10.

During the bull market, RZV has delivered average annualized returns of 25.5 percent. RZV's cumulative return over that period is 681.13 percent, good for the best showing among all small-cap ETFs. RZV follows the S&P Small Cap 600 Pure Value Index, which uses a similar methodology as RPV's underlying benchmark.

RPV Today

RPV is home to 114 stocks. The ETF has a price-to-book ratio of 1.40 and a price-to-earnings ratio of 13.02. Those are discounts to the S&P 500, but RPV's standard deviation of 12.87 percent is above that of the S&P 500.

The $902.1-million RPV allocates nearly 29 percent of its weight to the financial services sector and, in a surprise for a value ETF, the fund devotes 20.5 percent of its weight to the consumer discretionary sector. Only four of RPV's holdings command weights above 2 percent.

A $10,000 investment in RPV on March 10, 2009 turned into $88,572 on March 5, 2018, according to Morningstar data.

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