Laurence Dutton
Global value funds have outperformed growth funds so far this year, but what both types of funds have in common are some stocks they are overweighting, according to Bank of America Securities.
The brokerage in a note Thursday said 61% of value funds have outperformed their benchmark by a median 1.10%. Meanwhile, just 37% of growth funds have outperformed their benchmark with a median relative return of -0.99%.
“Globally, Growth and Value funds are typically overweight different stocks, but there are some stocks on which both fund types appear to agree,” Quant Strategist Nigel Tupper said.
Here are the stocks both fund types are, on average, meaningfully overweighting, followed by their YTD performances:
- Samsung Electronics – down 1.4% in South Korea trade
- TechnipFMC (FTI) – U.S.-listed shares: up 21%
- Grupo Financiero Banorte (OTCQX:GBOOY) – U.S.-listed shares: down 12%. In Mexico: down 9%
- ITT (ITT) – up 7.6%
- Charles Schwab (SCHW): up 7.3%
- Intercontinental Exchange (ICE) – up 4.8%
- US Foods (USFD) – up 27%
Global stocks are higher by +9% based on the dollar-denominated MSCI All Countries World Index. The accompanying iShares MSCI ACWI ETF (ACWI) has gained +10%.
Other global equities ETFs include: (IDV), (JIRE) and (AVDE).
