On value stocks: "While the S&P 500 Index is trading at historically high levels, this is not the case for U.S. value stocks. For example, while the
#Vanguard Growth ETF
$VUG had a trailing 12-month P/E of about 38, Dimensional's US Large Cap Value ETF
$DFLV and its US Small Value ETF
$DFSV had trailing 12-month P/Es of about 12 and 9, respectively.
The ratio of the growth P/E to the value P/Es is at a historically high level, forecasting a larger-than-historical value premium. Value stocks are also trading at relatively low levels around the globe, as evidenced by the trailing 12-month P/Es of Dimensional's International Value ETF
$DFIV, its International Small Cap Value ETF
$DISV, and its Emerging Markets Value ETF
$DFEV, at about 9, 8, and 7, respectively."
#Valuations #ValueInvesting #DFA #StockMarket #SCV