Invesco S&P 500 Enhanced Value ETF (SPVU)
ARCA ARCA Primary 
SPVU: A Decent, But Uninspiring Equity ETF
SPVU uses backward-looking value criteria, leading to underperformance versus SPY and missing out on major tech gains. The fund's heavy weighting in financials and energy, along with low liquidity, raises concerns about risk and portfolio quality. Given persistent underperformance and structural issues, I do not see SPVU as the top value ETF option for investors.
SPVU: Improved Outlook But This Enhanced Value ETF Isn't The Best Choice
SPVU tracks the S&P 500 Enhanced Value Index, selecting securities based on book value to price, earnings to price, and sales to price. Its expense ratio is 0.13%. Importantly, the Index only considers trailing metrics, potentially exposing investors in fast-changing markets. It also does not account for sector biases, leading to 40% exposure in Financials. I've observed SPVU often outperforms after a bad year, though this is also true for the Financial sector. Still, it tends to lag behind broad-based funds in the long run.
Will Strong GDP Growth Drive Value ETFs in 2025?
With strong GDP growth likely in 2025, strategists anticipate continued market gains, particularly in value stocks and GDP-sensitive sectors.
