If value stocks traditionally beat growth stocks, why does a comparison of U.S. and Canadian value and growth exchange-traded funds show otherwise?
That’s because investors widely use the terms value and growth stocks, and some stocks labelled value do not meet the requirements of value investors or academics, says Professor George Athanassakos.
In his article for The Globe and Mail, Athanassakos explains the metrics for value investors.
“Value investing is all about finding undervalued stocks, and these tend to be stocks that are smaller, and with fewer analysts following them,” he said.