An ETF For Value Investors

As the market faces inflation and other headwinds, some investors are shifting out of growth stocks and into value stocks.

Growth companies use their cash to reinvest into the company to promote growth. This could include things like making acquisitions, buying new machinery, hiring new employees, and so on.

In contrast, value companies use their cash to pay out dividends as a reward to their shareholders. They still try to grow, but their strategies are generally not as risky as those of growth companies.

Investors seeking exposure to value stocks should consider the SPDR Portfolio S&P 500 Value ETF SPYV. This ETF is designed to track the large-cap value segment of the S&P 500 Index.