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An effective vaccine could be the turning point for value stocks, but perhaps not just yet

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Value stocks have been on a tear in the last week after positive vaccine news from Pfizer and BioNTech raised hope of the U.S. economy staging a fast recovery next year. However, investors loading up on beaten-down value names should brace for some volatile swings as risks to the group linger.

The iShares Russell 1000 Value ETF (IWD) rallied 5.7% last week after Pfizer and BioNTech said Monday that their coronavirus vaccine candidate was more than 90% effective at preventing the coronavirus during a late-stage trial. Value's gain came at the expense of high-flying growth stocks. The iShares Russell 1000 Growth ETF (IWF) lost 1.2% last week.

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