Investors optimistic about the post-pandemic world are channeling cash into “riskier companies acutely sensitive to the economic cycle—led by the famed resurgence in the value factor,” according to a recent Bloomberg article that adds, “as the safety trade in big tech eases, equity gains are broadening and popular allocation styles like momentum are rebounding.”

The article quotes CFRA Research director of ETF research Todd Rosenbluth: “Investors have rotated away from mega-cap growth stocks that dominate the broader index-based ETFs toward more economically sensitive styles including value and equal weighted,” led by banks and travel operators.

According to the article, quality, low-volatility and momentum have also stabilized of late, after seeing a sell-off last November, and the market has seen a boom in all things ESG and thematic (i.e., clean energy, robotics, automation). It notes there is evidence that the smart-beta industry is reaching maturity if you consider a longer time frame, according to Morningstar analysts who recently wrote, “The slowing pace of organic growth, the year-over-year decline in the number of products on the menu and unrelenting fee competition are signs.”