The Performance Chase Is On in Value
Somewhat ironically, investors' bad behavior ensures the value premium's longevity.
A version of this article was published in the May 2017 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here.
In 2016, after years of underperformance, value stocks staged a comeback. The Russell 3000 Value Index outperformed the Russell 3000 Growth Index by about 11 percentage points for the year. All was right with the world, as relatively cheap stocks once again outperformed their relatively more expensive counterparts.