Value as an anchor in stability – with risks (KI Photo: FreePik, Mstudios)
Value is back – and how! After years of tech dominance, classic substance values experience a renaissance. Those who rely on undervalued quality stocks were recently rewarded. The Deka Stoxx Europe Strong Value ETF (ISIN: DE000ETFL045) is the best proof: 40 percent plus in 12 months – no other European fund could keep up. But what is behind the success?
The logic of the substance
While many investors run blindly trends, remains Value investing loyal to its basic principle: buy quality cheaply and wait until the market recognizes it. The DEKA ETF is specifically looking for shares that cost less than they are worth. Evaluation indicators such as the price-profit ratio and the dividend yield are the decisive factor. The goal: companies with solid balance sheets, stable cash flows and long -term potential.
This strategy pays off, especially in uncertain times. When growth values suffer from interest and economic fears, solid companies with strong fundamental data play their strengths. The performance of the ETF impressively shows that the market has rediscovered this approach.
A compact, focused portfolio
The ETF depicts the Stoxx Europe Strong Value 20 Index – and relies on class instead of mass. Only 20 titles make it to the portfolio, strictly selected for clear quantitative criteria. British stocks dominate, followed by German, French and Swedish companies. Industry main areas are basic substances, banks, health and consumer goods. Names like Delivery Hero, Anglo American, Deutsche Bank and Arcelor Mittal are among the largest positions.
With this focus, the ETF separates the chaff from wheat. He does not invest blindly in the overall market, but specifically in shares that offer a real evaluation.
Value as an anchor in stability – with risks
The charm of the value strategy lies in your security buffer: If you get cheap, you have less to lose and win more if the market corrects the undervaluation. Historically, value shares have often achieved solid returns with moderate volatility. And in the long term, the approach works: 227 percent plus in 15 years – this corresponds to an average annual return of 8.2 percent.
However, the path is not always easy. Value can fall behind in phases in which growth shares dominate the market. In addition, there is no guarantee that the market will quickly correct an undervaluation. If you invest here, you need patience and conviction.
Conclusion: The return of the substance
The Deka Stoxx Europe Strong Value ETF is a real power package for investors who are looking for substance instead of speculation. It shows impressively that undervalued quality stocks are far from extent. If you are looking for a solid alternative to overvalued growth stations, you will find an exciting option here. But: Value is not a sprint, but a marathon. Anyone who has staying power will be rewarded.
Disclaimer:
No investment advice. No call to buy or sell securities.