 The
Deep Value ETF (DEEP) is an exchange-traded fund that aims to provide
exposure to deep value stocks. The fund seeks to track the TWM Deep
Value Index, which selects the 20% of stocks with the lowest
price-to-book ratios from a universe of large and mid-cap companies
listed in the US.
The TWM Deep Value Index is rebalanced
annually, and constituents are weighted equally. As of March 2023, the
fund holds approximately 250 stocks, with the largest sector exposures
being financials, energy, and materials.
Investing in deep
value stocks is a contrarian strategy that seeks to identify companies
whose stock prices are undervalued by the market. These companies may
be experiencing temporary setbacks or have been overlooked by other
investors. By investing in these stocks, the fund managers hope to
capture long-term value and outperform the broader market.
The
Deep Value ETF is managed by ETF Managers Group, and its expense ratio
is 0.80%. It is worth noting that deep value strategies can be risky,
as there is no guarantee that the undervaluation will be corrected or
that the companies will perform well in the future. Therefore,
investors should carefully consider their risk tolerance and
investment goals before investing in the DEEP ETF or any other deep
value strategy.
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