Vanguard S&P Mid-Cap 400 Value ETF (ARCA: IVOV)

Latest news for Vanguard S&P Mid-Cap 400 Value ETF (ARCA:IVOV)

Vanguard S&P Mid-Cap 400 Value ETF

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The Fund employs an indexing investment approach designed to track the performance of the S&P MidCap 400 Value Index, which represents the value companies, as determined by the index provider, of the S&P MidCap 400 Index. The Index measures the performance of mid-size value companies in the United States. The Fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the Index, holding each stock in approximately the same proportion as its weighting in the Index.

Illumina, Inc.

Reinsurance Grp of America Inc Com New

Tenet Healthcare Corporation

Fidelity National Financial Inc

Wp Carey Inc.

Us Foods Holding Corp

Bj'S Wholesale Club Holdings Inc

Ally Financial Inc.

Performance Food Group Co

Jones Lang Lasalle Inc.

Vanguard S&P Mid-Cap 400 Value Index Fund ETF

Charlotte,,North,Carolina,,Usa,-,January,15,,2020:,Ally,Sign

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Ally Financial shares dropped over 18% after the CFO reported worsening credit issues and increased delinquencies amid rising inflation and living costs.

Why Is Ally Financial Stock Falling On Tuesday?

Broad U.S. Equity ETFs

ETFs

PXMV

Rydex ETF Trust S&P Midcap 400 Pure Value ETF

The Time Is Right To Buy Mid-Cap Value ETFs

Ally Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) shares are trading lower on Tuesday after the company&#8217;s CFO reportedly noted intensifying <a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">credit challenges among borrowers at a conference.</a>



The firm&#8217;s CFO, Russell Hutchinson, revealed that the company&#8217;s credit troubles have deepened this quarter, with borrowers grappling more than ever with soaring inflation and living costs, reported Reuters.



Delinquencies in the company&#8217;s retail auto segment spiked by around 20 basis points in July and August versus initial projections, Hutchinson reported to investors at a New York financial conference.



&#8220;Our borrower is struggling with high inflation and cost of living, and now more recently, a weakening employment picture,&#8221; Hutchinson said.



Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40794070/exclusive-lazard-small-cap-expert-predicts-30-50-russell-2000-rally-on-the-back-of-" rel="noreferrer noopener">EXCLUSIVE: Lazard Small-Cap Expert Predicts 30-50% Russell 2000 Rally On The Back Of Lower Interest Rates</a>



Net charge-offs, representing debts deemed unlikely to be recovered, increased by approximately ten basis points in Ally&#8217;s retail auto sector during the same period, exceeding initial expectations, Reuters added.



Shares of bank stocks are trading lower after Fed Vice Chair for Supervision Barr unveiled Basel and GSIB surcharge re-proposals.



Last week&#8217;s jobs report missed expectations, casting a shadow over anticipated Federal Reserve rate cuts later this month, <a target="_blank" href="https://www.bnnbloomberg.ca/business/2024/09/10/ally-drops-after-cfo-flags-consumer-stress-underperformance/" rel="noreferrer noopener">reported</a> BNN Bloomberg. Based in Detroit, Ally is primarily recognized for its auto lending but also provides credit cards, checking and savings accounts, and home loans.



Hutchinson stated that the firm will prioritize capital and expense management going forward, but it is not revising its guidance at this moment, BNN Bloomberg report added.



According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, ALLY stock has lost over 19% in the past month. Investors can gain exposure to the stock via&nbsp;First Trust Financials AlphaDEX (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXO#NYSE">FXO</a>) and&nbsp;Vanguard S&amp;P Mid-Cap 400 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVOV#NYSE">IVOV</a>).



Price Action: ALLY shares are trading lower by 18.7% to $32.26 at last check Tuesday.



Photo: JHVEPhoto/Shutterstock.com



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Mid caps have mostly been overlooked investing options. These securities are viewed as big and safe compared to the highly volatile small-cap exposure. But when compared to the stability of the large caps these are relatively too risky and uncertain.
Below we highlight a few factors why mid-cap ETFs can be intriguing picks right now.
Why Not Large Caps? 
The global market was shocked when President Donald Trump announced last week that the United States will impose a 25% tariff on steel imports and a 10% tariff on aluminum. The very move took the price of immediate delivery of aluminum from warehouses to its highest level in <a href="https://www.ft.com/content/67e3b5b6-2052-11e8-9efc-0cd3483b8b80">three years</a>, as quoted on ft.com. The metal has extensive usage in the candy, car and can industries. The tariff announcement has propelled steel prices to a six-year high.
Now, several exporting countries will likely feel the pinch. The key foreign steel suppliers of the United States are Canada, Brazil, South Korea and Mexico. These countries also import U.S. agricultural products. Hence, with retaliatory measures from affected countries being highly feared, it is better not to have a high focus on large-cap stocks with significant international exposure.
Why Not Small Caps?
Amid the ongoing tumult induced by the proposed tariffs, higher inflationary expectations and rising rate worries, volatility is likely to prevail. This may prove to be a risk to small-cap stocks. The tariffs are likely to result in an increase in raw material cost for manufacturers that use these metals. And along with most market watchers, we too believe that companies will try to pass on some cost escalation to consumers.
With the U.S. economy deriving 70% of its GDP from consumer spending, such a move may prove to be more damaging. Moreover, Trump&#39;s proposed tariffs on imported steel and aluminum will add 33,000 jobs to the concerned sectors, but cost 179,000 jobs in other fields, resulting in <a href="https://www.axios.com/study-job-losses-trump-tariffs-eb2efd8c-b21e-4036-a172-69852bb6e1c2.html">146,000 total job loss</a>. Whatever the case, it is too early to figure out the final impact that the tariffs will leave on the U.S. economy.
Why Mid-Cap Value ETFs?
All in all, the situation is not favorable either for small caps or large caps. So, it is better to take a middle-of the-road approach. Also, after a superb Trump rally in 2017, many securities are guilty of overvaluation. Wall Street too is finding it tough to gain strength this year. In such an erratic market, it is better to add a value quotient to mid-cap picks.
&nbsp;iShares Morningstar Mid-Cap Value ETF JKI
The 189-stock fund has a double-digit weight on Financials, Consumer Discretionary, Utilities and Materials. No stock accounts for more than 1.35% of the fund. It charges 30 bps in fees.
Guggenheim S&amp;P Mid-Cap 400 Pure Value ETF RFV
The 89-stock fund has a double-digit focus on Consumer Discretionary, Financials, Information Technology, Industrials and Energy. No stock accounts for more than 3.39% of the fund, which charges 35 bps in fees.
PowerShares Russell Midcap Pure Value Portfolio PXMV
The 175-stock portfolio is heavy on Financials, Utilities, Real Estate and Consumer Discretionary. The fund charges 39 bps in fees. It also doesn&#39;t have any company concentration risk as the top holding has only 2.10% weight.
Vanguard Mid-Cap Value ETF VOE
The 206-stock fund is heavy on Financials, Consumer Goods, Consumer Services and Industrials. It charges 7 bps in fees.
Vanguard S&amp;P Mid-Cap 400 Value ETF IVOV
The 300-stock fund is heavy on Financials, Industrials, Information Technology and Real Estate. It charges 20 bps in fees.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. <a href="http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-294821" target="_blank">Click to get this free report</a>

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