Silver rated global value ETF

The Power of Value: A Systematic Approach

In the world of investing, there are many "styles," but few have the academic rigour and historical success of Value Investing. While the headlines are often dominated by high-flying, expensive technology companies, the "value" approach takes a different path: finding high-quality companies that are trading for less than they are truly worth.

What is Value Investing?

At its core, value investing is about discipline. It uses a systematic process to identify stocks with low price-to-book ratios and high profitability. We don't "pick stocks" based on a gut feeling; we follow a robust methodology that focuses on factors that have been proven to persist over time.

The Quality Overlay

Value alone isn't enough—you don't want to buy a company just because it's cheap if it's also a failing business. That's why we apply a "profitability" or "quality" overlay. By focusing on companies that are both inexpensive and highly profitable, we moderate the volatility that can sometimes come with value investing.

Why This Matters for Your Portfolio

International equities are a vital part of a diversified portfolio, providing exposure to sectors that are small or non-existent on the ASX (like global healthcare or advanced manufacturing). Using a systematic value approach in this space allows you to:

• Reduce Performance Chasing: You aren't buying what's "hot" today; you're buying what's "valued" correctly for tomorrow.

• Lower Trading Costs: By avoiding high-turnover strategies, more of your returns stay in your portfolio.

• Capture Excess Returns: Over the long term, "value" has historically outperformed "growth," provided the investor has the patience to stay the course.

As your Adelaide advisors, we believe in strategies that are sensible, robust, and grounded in evidence.

Source: https://www.morningstar.com.au/etfs/silver-rated-global-value-etf

For any further information regarding this article please call Humble Goode on (08) 7477 8252

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