ETF funds like value investing. This is when bought in portfolio securities, the market value of which is minimal in relation to the book value - on AMarkets materials.
In 2016, ETF received $ 5.5 billion of fresh cache of enthusiastic investors. But as they say, somewhere arrived - somewhere departed. And it had lost, in fact, everywhere except the ETF. In particular, the cost shares have lost $ 6.2 billion in money of private investors. Valuation of investment, in general, are less attracted players.
Because it creates a lower yield. These papers were very popular in the last century - they can grow even when the GDP moved up very slowly. Now everything is different. The situation is particularly exacerbated on expectations the Fed increase interest rates as well as on the background of the credit crunch caused by low commodity prices. 30% of value of assets - bank shares. The next segment (10%) - Energy.
Today, financial companies traded 37% lower than the record highs of 9-year-old. Over $ 700 billion was withdrawn last 7 months of the segment of banking assets. Experts believe that the segment of the cost of assets has a chance to recover. The process has already started. KBW Bank Index index (reflects the dynamics of the US banking sector) increased by 18% over the last 3 months - is 2 times higher than the S & P500 rise for the same period.