The Schwab U.S. Large-Cap Value ETF ( SCHV ) is a low-cost, passively managed exchange-traded fund designed to provide investors with diversified exposure to companies that trade at an appealing premium. With growing concerns about a potentially loomingMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent over a decade in professi ...

Core Insights - Markets may be on the verge of a value rotation, with significant risks to growth activity anticipated in 2025, which could shift investor focus towards value investments [1][3] - Value ETFs, such as FVAL and FIVA, are positioned as effective tools for diversifying portfolios and capitalizing on potential market shifts towards value [2][4] Value ETF Overview - FVAL, the Fidelity Value Factor ETF, charges 15 basis points to track the Fidelity U.S. Value Factor Index and has achieved a return of 13.1% over the past year as of November 30 [5] - FIVA, the Fidelity International Value Factor ETF, charges 19 basis points to track the Fidelity International Value Index and has delivered a strong return of 34.4% over the last year, highlighting the robust performance of foreign equities [6] Investment Strategy - The current market environment suggests that investors should consider reallocating towards value strategies as 2026 approaches, given the potential for a value rotation [7]

Group 1 - The article emphasizes the importance of in-depth research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting the potential for income generation [1] - Leo Nelissen is identified as an analyst focusing on economic developments related to supply chains, infrastructure, and commodities, aiming to provide actionable investment ideas with a focus on dividend growth opportunities [1] Group 2 - The article includes a disclosure indicating that the author has a beneficial long position in UNP shares, suggesting a personal investment interest in the company [2] - It is noted that the opinions expressed in the article are those of the author and do not reflect the views of Seeking Alpha as a whole, indicating a separation between individual analysis and the platform's stance [3]

Group 1 - The real estate investment trusts (REITs) sector is being closely monitored for potential value rotations as 2025 approaches [1] - Brett Ashcroft Green has extensive experience in private credit and commercial real estate mezzanine financing, working with high-net-worth individuals globally [1] - The family operates a real estate brokerage in Nevada, a favorable jurisdiction for tax planning and trusts [1] Group 2 - The article does not provide specific financial advice or recommendations regarding investments [2][3][4]

Brett Ashcroft Green, CFP® is a CERTIFIED FINANCIAL PLANNER™. His family also operates a real estate brokerage in Nevada, one of the most tax-advantaged jurisdictions in the United States for retiring, estate planning, and establishing trusts. He holds an MBA and has worked with high-net-worth and ultra-high-net-worth individuals globally, specializing in private credit and commercial real estate mezzanine financing as a business director at a large family office. Brett is fluent in Mandarin Chinese in both ...

Core Insights - The earnings season indicates that US large-cap companies continue to outperform expectations, with S&P 500 earnings 6.3% higher than anticipated, while all sectors except Communication Services showed positive surprises [3][4][7] - Future earnings expectations for the S&P 500 have increased due to positive earnings surprises, suggesting continued growth potential for US large-cap companies [6] - The annualized trend for US large-cap earnings is a positive 13.1% year-over-year, supported by an 8.3% revenue growth, with notable strength in Financials and Industrials [7][8] Earnings/Revenue Surprises - US large-cap earnings results remain strong, with small-caps also showing improvement for the second consecutive quarter [5] - All 11 sectors reported positive revenue surprises, alleviating concerns about the impact of tariffs on earnings [4][5] Analyst Adjustments - Analysts have revised their earnings expectations upward in response to the positive earnings surprises observed during the quarter [6] Earnings/Revenue Trends - The technology sector has demonstrated exceptional performance, with an annualized earnings growth of 29%, justifying its strong market performance [8] - Small-cap earnings are improving but show more inconsistency compared to large-caps, with potential for growth in sectors like technology, industrials, and healthcare [18] - European equities have shown improvement, but results are inconsistent across sectors, with a 3% earnings surprise compared to 6.7% in the US [18] - Japan's earnings have rebounded strongly, flipping all indicators to positive, although consistency remains a concern [18] Market Outlook - The overall strength of the US economy has overshadowed potential disruptions from tariffs, with strong earnings from AI-related segments and signs of growth in value-oriented sectors [13] - The company maintains an overweight position in US large-cap stocks while selectively investing in Europe and Japan, focusing on value and financial sectors [14]

Summary of Conference Call on China Consumer Staples Industry Overview - The consumer staples sector in China is experiencing weak demand trends from Q2 to Q3, influenced by policy and weather factors, leading to a wider divergence between market leaders and laggards [1][2] - The spirits sector has seen a valuation increase of 24% in Q3 to date, compared to a 16% increase in the A-share Liquor index and a 13% increase in the MSCI China Index, driven by improved market sentiment and expectations of stimulus policies [1] Key Insights Demand Trends - Overall demand remains weak, particularly in gifting categories as noted by dairy and spirits companies [1] - Beer, spirits, and liquid milk are under pressure, while beverages, snacks, and pet foods show mixed performance with some companies experiencing growth due to strong product cycles and omnichannel strategies [2] Pricing and Market Dynamics - Pricing remains muted across the sector, with spirits and beer companies focusing on sub-premium segments [2] - The August Foods Consumer Price Index (CPI) decreased by 4.3% year-over-year, indicating potential challenges in pricing strategies [1] Company Performance and Strategies - Companies like Haitian and Nongfu are gaining market share, while others like Jonjee are struggling [9] - CR Beer reported growth in premium and sub-premium volumes, while maintaining a disciplined approach to pricing and promotions [47] - The spirits sector is seeing a shift towards mid-end and mass-market products to counteract upper-mid-end softness [43] Future Outlook - The sector is expected to see a gradual recovery in retail demand, particularly in traditional categories like beer and dairy, with potential for value stock rotation in early 2026 [8] - Companies are expected to enhance shareholder returns and maintain dividend payouts, with a focus on operational efficiency and cost management [8] Sector Preferences - Preference remains for beverages due to secular growth, followed by pet foods and dairy, with a positive outlook for beer in the medium term [13] - Stock recommendations include Eastroc, Gambol, and China Pet Foods for strong product cycles, and CR Beer and Tsingtao for their dividend yields and valuations [13] Additional Observations - The competitive landscape is evolving, with top players consolidating market share amid weak demand, leading to a valuation premium for leading brands [9] - The pet food sector is benefiting from a shift towards higher-value segments, with companies focusing on premiumization and operational efficiencies [48] - Snacks are seeing a channel shift towards discounters and mom-pop stores, with a focus on large SKU strategies and product mix upgrades [49] Key Watch Factors - Policy directions post the Fourth Plenum and local catering incentives are critical to monitor, especially their impact on banquet traffic [11] - The performance of mid-end and mass SKUs in spirits and the overall margin discipline across the sector will be crucial as cost pressures moderate [12]

Market Sentiment and Value Stocks - Current market sentiment is characterized by extreme optimism, leading investors to seek value and potential upside opportunities [1] - Value stocks have significantly underperformed growth stocks, with the widest margin in the past decade, indicating a potential "catch-up" play [2] Johnson & Johnson (JNJ) - Johnson & Johnson's stock is trading at $156.91, close to its 52-week high, but its forward P/E ratio of 14.9x is below the historical average of 19.5x, suggesting room for a rally [3] - Assenagon Asset Management increased its holdings in Johnson & Johnson by 160%, now holding $635.3 million worth of the stock, indicating bullish sentiment [4] - Analysts, including Shagun Singh from the Royal Bank of Canada, have set a price target of $181 per share, suggesting a potential upside of 16% [5] Berkshire Hathaway (BRK.B) - Berkshire Hathaway's stock is priced at $476.73, with a P/E ratio of 12.71, indicating it is undervalued compared to the financial sector's average P/B ratio of 2.3x [6][8] - The stock has underperformed the S&P 500 by 26% over the past quarter, presenting a significant discount opportunity for investors [7] - Analyst Kein Heal has a price target of $575 per share, indicating a potential rise of 21% from current prices [9] Intel (INTC) - Intel's stock is currently at $23.30, trading at 63% of its 52-week high, and Assenagon increased its stake by 86.4% to $508.6 million [11] - The U.S. government's focus on reshoring semiconductor supply chains positions Intel favorably for increased demand and pricing [12] - Recent purchases of Intel stock by U.S. Congress members signal positive sentiment towards the company [13]