Growth VS Value Investing

Growth vs. Value investing. IWF vs. IWD. What’s the difference and which one is better? By the way, everything in this video is education, not advice. Someone recently asked me to do a video on IWF, the iShares Russell 1000 Growth ETF. NO ONE has asked me to do a video on IWD, the iShares Russell 1000 Value ETF. You know why? Because growth has CRUSHED value and IWF has CRUSHED IWD lately. Like… basically for the entire time most gen z and millennials have been investing. So does that mean growth investing is better than value investing? The short answer is no. Would you believe that Value investing has historically done better!?!? It’s true, according to this chart from DFA – Dimensional Fund Advisors. If growth investing is inherently better than value investing, then why do you think the greatest investor of all time, Warren Buffett, was a value investor? The reality, is that neither approach is inherently “better” than the other and they tend to go through long cycles where one is in favor over the other. If we go back to the inception of IWF and IWD in 2000, you can see that their returns are almost IDENTICAL! Growth crushed value in the 90s during the tech bubble, which was just bursting when these ETFs were created. Then growth stocks actually fell from early 2000 and didn’t recover for over a decade! Value dominated… but then ultra-low interest rates and technological advancements like cloud computing, social media, and e-commerce led to a resurgence in growth companies. Will AI continue that trend, or could we be in another overhyped bubble like the internet in the 90s? If you’ve got a strong opinion on that, this video will help you decide what to invest in. Join My FREE Discord: https://discord.gg/tCffKnqZB4 Growth Investing Explained: https://youtu.be/247iiTUf-ok?si=V7JauX_bnRtrrAsu Value Investing Explained: https://youtu.be/7YA2j0MyInI?si=hrETuiRhyQ87DM8y 00:00 Growth vs Value Return History 1:58 Growth VS Value Approach 3:31 Growth and Value Are Not Opposites 4:25 Classifying Stocks As Value vs Growth 5:43 Value vs Growth Company Characteristics 6:18 Three Ways to Incorporate Value and Growth Into a Portfolio 9:22 Approaches of two of history's best teachers #fundamentalsoffinance #growthinvesting #valueinvesting  @ThePlainBagel