ETFs & Mutual Funds
Value-Stock ETFs Pull In Billions in Pre-Fed-Cut Rotation Bet
- Investors see Fed’s rate cut boosting economic growth
- BlackRock tweaked its model portfolios to add value stocks
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Investors are betting on a revival of undervalued stocks once the Federal Reserve starts cutting interest rates.
Exchange-traded funds focused on value stocks — those that trade below what they’re worth — have raked in $6.9 billion so far in September, the cohort’s best month this year, according to data compiled by Bloomberg Intelligence. At the same time, growth-stock ETFs, which tend to be heavily skewed toward big names in the technology sector, have shed about $13 million.