Two inverse ETFs have performed exceptionally well this year: DEEP has a year-to-date return of 19.57%, and QVAL has returned 20.72%.
The article points out that the Acquirers Small and Deep Value ETF (DEEP) has returned 19.57% year-to-date as of June 30, outperforming the S&P 500 Index ETF (VOO)'s 10.16% gain over the same period. The Alpha Architect U.S. Quantitative Value ETF (QVAL) also recorded a 20.72% gain year-to-date as of July 31. Both ETFs employ a contrarian investment strategy, focusing on small-cap or deeply undervalued companies overlooked by Wall Street, with low overlap with S&P 500 constituents. DEEP primarily constructs its portfolio using the "acquirer's multiple" valuation metric (enterprise value/EBITDA), while QVAL screens using EBIT/total enterprise value (TEV).
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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