With the market expecting the Federal Reserve to cut interest rates, investors are turning to undervalued stocks in anticipation of their recovery. According to Bloomberg industry research, since September, value stock-focused exchange-traded funds (ETFs) have attracted $6.9 billion in inflows, making it the best-performing month this year. At the same time, growth stock ETFs that typically invest in large technology companies have seen a decrease in funds of around $13 million.

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More than half of the inflows into value ETFs in September went to $EAFE Value Stock ETF-iShares (EFV.US), which has benefited from BlackRock adjusting its model portfolio strategy. BlackRock has reduced its investments in US stocks and growth stocks, favoring value stocks and fixed-income products. $EAFE Value Index MSCI Ishares (EFV.US)$ EAFE Value Stock ETF-iShares (EFV.US), which has benefited from BlackRock adjusting its model portfolio strategy. BlackRock has reduced its investments in US stocks and growth stocks, favoring value stocks and fixed-income products.

Tushar Yadava, a strategist at BlackRock, said of EFV, "We believe this ETF has the best profit potential." While they still remain bullish on growth stocks, they are balancing their investments by increasing the proportion of value stocks in their portfolios.

Other top-performing value funds in September include the $25 billion$Spdr Series Trust Spdr Portfolio S&P 500 Value Etf (SPYV.US)$ $iShares Russell Top 200 Value ETF (IWX.US) also attracted over $0.8 billion in funds this month. $Ishares Russell Top 200 Value Etf (IWX.US)$ In the past two years,

It is understood that traders on Wall Street are selling off technology stocks, which were the main driving force behind this year's bull market. As market expectations for the Federal Reserve to lower borrowing costs to stimulate economic growth, investors are turning to traditional industries such as utilities and real estate to find new growth points.

$NVIDIA (NVDA.US)$,$Microsoft (MSFT.US)$As technology giants lead the stock market, they have attracted a large number of investors. However, now, due to concerns about slowing economic growth and the earliest possible interest rate cut by the Federal Reserve starting this Wednesday, traders are shifting towards industries such as real estate, utilities, and essential consumer goods.

Since July 16th$S&P 500 Index (.SPX.US)$reaching their peak, the so-called seven major technology stocks - nvidia, microsoft, $Apple (AAPL.US)$ , Alphabet Inc., $Amazon (AMZN.US)$,$Meta Platforms (META.US)$And.$Tesla (TSLA.US)$- Falling was seen in most stocks, with the Bloomberg Big Tech Index falling by 5.3%. In comparison, the broader stock benchmark index had a drop of less than 1% during this period, mainly due to the overweighting of these fast-growing tech giants in the S&P 500 Index. However, industries such as real estate and utilities have significantly outperformed this index, rising by 11% respectively.

These data also include the rise of the S&P 500 index last week, with technology stocks leading the way.

Matt Maley, Chief Market Strategist at Miller Tabak + Co., said, 'This positive market performance seems to indicate that investors now have more confidence that the rate cuts to be taken will help economic growth next year and contribute to more balanced profit growth.'

The market widely expects the Federal Reserve to start an interest rate cut cycle on Wednesday, with a possible reduction of 50 basis points. On Tuesday morning, despite the latest economic data showing resilient U.S. consumers, the market estimates the possibility of policymakers announcing a 50 basis point interest rate cut to be around 55%.

Editor/Rocky