{"menuItems":[{"label":"Our top picks for where to buy the best value ETF","anchorName":"#toppicks"},{"label":"Best value ETF","anchorName":"#best-value-etf"},{"label":"How to buy the best value ETFs in 5 easy steps","anchorName":"#how-to-buy-the-best-value-etfs-in-5-easy-steps"},{"label":"Why invest in the best value ETF?","anchorName":"#why-invest-in-the-best-value-etf"},{"label":"Compare more trading platforms to invest in value ETFs","anchorName":"#compare"},{"label":"Frequently asked questions about value ETFs","anchorName":"#frequently-asked-questions-about-value-etfs"}]}
Value exchange-traded funds (ETFs) are funds composed of stocks that trade below what their performance suggests. In other words, stocks that are undervalued. Value stocks stand out for their high dividend yields, low price-to-book (P/B) ratio and low price-to-earnings (P/E) ratio. Value ETFs also seek to capitalize on these undervalued assets by offering broad exposure to a variety of value stocks.
Sign up bonus: [FINDER EXCLUSIVE] Get a $25 bonus when you sign up and deposit $100
Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.
Finder is not an adviser or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.
Best value ETF
Here are the best value ETFs for small, mid and large cap companies based on YTD price change with expense ratios less than 0.25%.
Logo
ETF name and ticker
ETF description
Expense ratio
YTD return
Market Cap
Avantis U.S. Small Cap Value ETF (AVUV)
AVUV is an ETF designed to track and invest in small-cap value stocks within the U.S. market.
0.25%
0.75%
Small cap
SPDR S&P 400 Mid Cap Value ETF (MDYV)
MDYV is an exchange-traded fund designed to replicate the performance of mid-cap U.S. stocks with a value investing approach
0.15%
-4.40%
Mid cap
Franklin FTSE Italy ETF (FLIY)
FLIY is an ETF offered by Franklin Templeton, focused on tracking the FTSE Italy Capped Index.
0.09%
15.89%
Large cap
How to buy the best value ETFs in 5 easy steps
Choose an online stock trading platform. Choose from our Top Picks above, use our comparison table below or jump straight to the best ETF brokers 2023.
Sign up for an account. Provide your personal information and sign up.
Set up a funding method to pay for the transaction. Deposit funds into your account by linking your banking information.
Choose the stocks you want to buy. Search for the stock by name or ticker symbol.
Place your order. Buy the stock. It’s that simple.
What Matt thinks about investing value ETFs
Value stocks are stocks that trade below what they're worth, but identifying these potential gems means analyzing metrics like price-to-book ratios and price-to-earnings ratios. Value ETFs will follow this strategy for you and provide an efficient way to diversify your portfolio. And because many value stocks are of well-established companies, value ETFs tend to provide an attractive dividend yield.
Let’s be honest: it’s been difficult for value to keep up with growth over the last decade. Cathie Wood’s tech-focused ARK Innovation ETF (ARKK) has produced average returns of 46.35% over the last five years, with one-year returns of 177.10%.
So why add value stocks or ETFs to your portfolio? Just ask Warren Buffett. Over time, value stocks are a predictable, stable investment. The valuations are lower, and these securities tend to fare better in times of market turmoil. My inclusion of funds such as the Vanguard S&P Mid-Cap 400 Value Index Fund ETF Shares aims at adding exposure to those smaller capitalized companies that have the potential to really grow.
Compare more trading platforms to invest in value ETFs
1 - 6 of 6
Frequently asked questions about value ETFs
According to our analysis, as of October 2023, the highest performing value ETFs are:
Small cap: Avantis U.S. Small Cap Value ETF (AVUV)
Mid cap: Vanguard S&P Mid-Cap 400 Value ETF (IVOV)
Large cap: Franklin FTSE Italy ETF (FLIY)
Yes, value ETFs are a great way to diversify your portfolio and manage risk. Value ETFs are composed of stocks that are undervalued. Value stocks stand out for their high dividend yields, low price-to-book (P/B) ratio and low price-to-earnings (P/E) ratio. Value ETFs also seek to capitalize on these undervalued assets by offering broad exposure to a variety of value stocks.
Shannon Terrell is a lead writer and spokesperson at NerdWallet and a former editor at Finder, specializing in personal finance. Her writing and analysis on investing and banking has been featured in Bloomberg, Global News, Yahoo Finance, GoBankingRates and Black Enterprise. She holds a bachelor’s degree in communications and English literature from the University of Toronto Mississauga.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
