What passive value investing misses
- Joseph Mezrich
- Oct 1, 2024
- 2 min read
It is not uncommon for different value metrics to produce different investment outcomes, so value indices and ETFs generally blend value metrics. The selected metrics and their weightings produce a particular impression of value investing performance. This selection feature differs from cap-weighted indices, where only one metric, cap weight, is considered. What has been happening in the consumer staples sector of the S&P500 has been extreme, highlighting what a value blend masks.
