Cinthia Murphy, Managing Editor, ETF.com
Despite all ongoing concerns about the health of the U.S. and the global economy, U.S. stocks remain fairly valued, and some pockets of the market are downright rich.
While the 12-month trailing price-to-earnings ratio (P/E) for the S&P 500 sits currently around 21.4—which is close to the 10-year average of 21.6—growth stocks as measured by the Russell 1000 Growth Index are trading at 27.6 times earnings, more than 20% above the 10-year average.
A look at the ETFs with the lowest valuations shows that, of the 20 cheapest funds by valuation, most are international equities ETFs—a lot of them emerging market funds.
Here are the U.S.-listed ETFs with the lowest valuations:
ETFs With The Lowest P/E Ratios
While there are some ETFs outside of emerging market equities among the top value plays right now—funds that include the ProShares Global Listed Private Equity ETF (PEX), which owns private equity stocks from around the world, the only value ETF among the ETFs with the lowest P/E’s is the Alpha Architect International Quantitative Value ETF (IVAL).
That’s because value stocks, too, are hovering at expensive territory, trading at a P/E of 18.8 versus 19.2 average. Finding a bargain in U.S. stocks today is not that easy.
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