← Back

Value ETFs

A value ETF screens its potential holdings based on how expensive a company's stock market price is using measures like price to earnings or price to book value. Value investing is one of the oldest investing approaches, made famous by Ben Graham and David Dodd in their 1934 value investing classic "Security Analysis" and later popularized by Warren Buffett and others. Fama French, in their influential 1993 publication of their "three factor" model, stated that small size and value were the two most important factors to explain the outperformance of stocks over long periods of time. So there are a lot of believers in value investing.

There are a large number of value ETFs, as shown in this table:

NameSymbolLast priceCurrency
Brandes International ETF Brandes U.S. Small-Mid Cap Value ETFBATS:BSMC30.62USD
Dimensional International Value ETFARCX:DFIV34.95USD
Strive 1000 Value ETFXNYS:STXV29.67USD
Vanguard S&P 500 Value ETFARCX:VOOV186.32USD
First Trust Large Cap Value AlphaDEX FndXNAS:FTA76.12USD
Schwab U.S. Large-Cap Value ETFARCX:SCHV26.08USD
iShares Edge MSCI USA Value Factor ETFBATS:VLUE105.60USD
WBI BullBear Value 1000 ETFARCX:WBIF28.67USD
INVESCO S&P MIDCAP VALUE WITARCX:XMVM55.39USD
AAM S&P 500 Sector High DividendARCX:SPDV32.70USD
Advisor Managed Portfolios Miller Value Partners Appreciation ETFARCX:MVPA35.83USD
INVESCO S&P MIDCAP 400 PUREARCX:RFV119.97USD
EA Bridgeway Omni Small-Cap Value ETFXNAS:BSVO21.51USD
iShares S&P 500 Value ETFARCX:IVE191.78USD
Vanguard Mega Cap 300 Value IndexARCX:MGV125.44USD
iShares Russell Mid-Cap ValueARCX:IWS129.93USD
American Century ETF Trust Avantis U.S. Mid Cap Value ETFARCX:AVMV65.45USD
iShares Trust iShares ESG Aware MSCI USA Value ETFBATS:EVUS28.86USD
WisdomTree LargeCap ValueARCX:WTV84.07USD
Hartford Funds Exchange-Traded Trust Hartford Quality Value ETFBATS:QUVU25.44USD
Vanguard S&P Mid-Cap 400 Value ETFARCX:IVOV96.98USD
Bushido Capital US Equity ETFXNAS:SMRI31.57USD
Invesco S&P 500 Pure Value ETFXNYS:RPV90.20USD
Brandes International ETF Brandes International ETFBATS:BINV29.85USD
EA Series Trust Euclidean Fundamental Value ETFARCX:ECML32.12USD
American Century ETF Trust Avantis All Equity Markets Value ETFARCX:AVGV60.92USD
COLUMBIA RESEARCH ENHANCED VARCX:REVS24.81USD
Vanguard Russell 1000 Value ETFXNAS:VONV81.82USD
iShares US Small Cap Value Factor ETFBATS:SVAL32.45USD
Federated Hermes ETF Trust Federated Hermes MDT Large Cap Value ETFARCX:FLCV27.39USD
Fidelity Covington Trust Fidelity Fundamental Large Cap Value ETFBATS:FFLV21.40USD
iShares Russell 2000 Value ETFARCX:IWN164.11USD
Tidal ETF Trust Gotham 1000 Value ETFARCX:GVLU23.67USD
EA Series Trust Morgan Dempsey Large Cap Value ETFBATS:MDLV25.83USD
INVESCO S&P 500 ENHANCED VALARCX:SPVU49.32USD
Alpha Architect Intl Quantitative ValueBATS:IVAL23.82USD
Brookstone Intermediate Bond ETF Brookstone Value Stock ETFBATS:BAMV31.41USD
Dimensional ETF Trust Dimensional US Large Cap Value ETFARCX:DFLV30.03USD
Spdr S&P600 ScvARCX:SLYV88.07USD
Vanguard Small-Cap ValueARCX:VBR199.65USD
T. Rowe Price Exchange-Traded Funds, Inc. T. Rowe Price Value ETFARCX:TVAL31.25USD
LEGG MASON SMALL-CAP QUALITYXNAS:SQLV42.54USD
Alpha Architect US Quantitative Value ETBATS:QVAL44.87USD
Brandes International ETF Brandes U.S. Value ETFBATS:BUSA31.77USD
Dimensional ETF Trust Dimensional US Marketwide Value ETFARCX:DFUV40.90USD
iShares Russell 1000 Value ETFARCX:IWD185.54USD
iShares Morningstar Mid-Cap ETFXNAS:IMCV74.19USD
iShares Morningstar Small-Cap Value ETFARCX:ISCV63.15USD
ETRACS 2x Leveraged US Value Factor TR ETNARCX:IWDL38.90USD
SHL Telemedicine Ltd VanEck Morningstar Wide Moat Value ETFBATS:MVAL32.51USD
iShares Morningstar Lg ValueARCX:ILCV81.38USD
Dimensional U.S. Targeted Value ETFARCX:DFAT55.48USD
NuShares ESG Large-Cap ValueBATS:NULV39.47USD
SEI EXCHANGE TRADED FDS SEI Enhanced U.S. Large Cap Value Factor ETFBATS:SEIV33.56USD
Opus Small Cap Value PlusBATS:OSCV37.20USD
PGIM ETF Trust PGIM Jennison Focused Value ETFARCX:PJFV70.32USD
KraneShares Trust KFA Value Line Dynamic Core Equity Index ETFARCX:KVLE25.42USD
The 2023 ETF Series Trust Eagle Capital Select Equity ETFARCX:EAGL28.09USD
SPDR Portfolio S&P 500 Value ETFARCX:SPYV51.74USD
Vanguard U.S. Value FactorBATS:VFVA118.46USD
PRINCIPAL SHAREHLD YIELD ETFXNAS:PY49.78USD
First Trust Small Cap Value AlphaDEX FndXNAS:FYT54.74USD
iShares Russell Top 200 ValueARCX:IWX79.09USD
BrandywineGLOBAL - Dynamic US Large Cap Value ETFXNAS:DVAL13.51USD
John Hancock Exchange-Traded Fund Trust John Hancock Disciplined Value International Select ETFARCX:JDVI25.48USD
Fidelity® International Value Factor ETFARCX:FIVA24.17USD
iShares Core US ValueXNAS:IUSV93.02USD
American Century ETF Trust Avantis U.S Small Cap Equity ETFARCX:AVSC54.46USD
First Trust Mid Cap Value AlphaDEX FundXNAS:FNK53.01USD
INVESCO S&P SMALLCAP VALUE WARCX:XSVM54.76USD
American Century STOXX U.S. Quality ValueARCX:VALQ61.52USD
J.P. Morgan Exchange-Traded Fund Trust JPMorgan Active Small Cap Value ETFARCX:JPSV59.43USD
ClearBridge Focus Value ESG ETFBATS:CFCV38.08USD
iShares S&P SmallCap 600 Value ETFARCX:IJS108.86USD
First Trust Multi Cap Value AlphaDEX FndXNAS:FAB81.91USD
WisdomTree US Dividend ex-Financials FunARCX:AIVL107.32USD
Capital Group Dividend Value ETF Capital Group Dividend Value ETFARCX:CGDV35.60USD
Fidelity Blue Chip Value ETFBATS:FBCV31.68USD
Spdr S&P400 McvARCX:MDYV80.33USD
INVESCO S&P 500 VALUE WITH MARCX:SPVM57.91USD
Avantis U.S. Large Cap Value ETFARCX:AVLV66.85USD
Avantis International Large Cap Value ETFARCX:AVIV51.33USD
WisdomTree Int'l Dividend Top 100 FundARCX:AIVI39.48USD
Absolute Select Value ETFARCX:ABEQ31.85USD
Fidelity Covington Trust Fidelity Enhanced Large Cap Value ETFARCX:FELV30.58USD
Goldman Sachs ETF Trust Goldman Sachs MarketBeta Russell 1000 Value Equity ETFARCX:GVUS47.47USD
iShares S&P Mid-Cap 400 Value ETFARCX:IJJ124.26USD
iShares Edge MSCI Intl Value Factor ETFARCX:IVLU26.76USD
JPMorgan Active Value ETFARCX:JAVA63.79USD
Avantis Emerging Markets Value ETFARCX:AVES46.76USD
AVANTIS US SMALL CAP VALUEARCX:AVUV96.19USD
DBX ETF Trust Xtrackers S&P 500 Value ESG ETFBATS:SNPV31.37USD
Dimensional ETF Trust Dimensional US Small Cap Value ETFARCX:DFSV30.56USD
AAM S&P Emerging Markets Sector High DividendARCX:EEMD20.09USD
iShares MSCI Japan ValueXNAS:EWJV30.58USD
AVANTIS INTL S/C VALUE ETFARCX:AVDV63.96USD
Simplify Exchange Traded Funds Simplify Next Intangible Value Index ETFBATS:NXTV26.84USD
Putnam Focused Large Cap Value ETFARCX:PVAL37.19USD
iShares MSCI EAFE Value ETFBATS:EFV51.81USD
Cambria Global Value ETFBATS:GVAL20.72USD
SPDR S&P 1500 Value Tilt ETFARCX:VLU186.31USD
Dimensional ETF Trust Dimensional Emerging Markets Value ETFARCX:DFEV26.37USD
ETF Opportunities Trust Cultivar ETFBATS:CVAR25.89USD
iShares Focused Value FactorARCX:FOVL70.02USD
AAM S&P Developed Markets High Dividend ValueARCX:DMDV23.63USD
American Century ETF Trust Avantis All International Markets Value ETFARCX:AVNV55.22USD
Vanguard Russell 2000 Value ETFXNAS:VTWV145.63USD
Vanguard S&P Small-Cap 600 Value ETFARCX:VIOV93.94USD
Affinity World Leaders Equity ETF Foundations Dynamic Value ETFBATS:FDVL10.34USD
BlackRock ETF Trust BlackRock Large Cap Value ETFARCX:BLCV31.58USD
Affinity World Leaders Equity ETF Conductor Global Equity Value ETFXNYS:CGV12.71USD
Lattice Strategies Trust Hartford US Value ETFBATS:VMAX47.56USD
iShares Trust iShares International Developed Small Cap Value Factor ETFBATS:ISVL33.93USD
Northern Lights Fund Trust III FPA Global Equity ETFBATS:FPAG30.26USD
Deep Value ETFARCX:DEEP34.99USD
American Century Focused Large Cap Value ETFARCX:FLV66.59USD
Fidelity Value FactorARCX:FVAL61.82USD
NuShares ESG Mid-Cap ValueBATS:NUMV34.98USD
Madison ETFs Trust Madison Dividend Value ETFARCX:DIVL21.39USD
The Acquirers Fund ETFARCX:ZIG38.95USD
Dimensional ETF Trust Dimensional International Small Cap Value ETFBATS:DISV26.29USD
INVESCO S&P SMALLCAP 600 PURARCX:RZV111.90USD
JPMORGAN US VALUE FACTOR ETFARCX:JVAL43.59USD
INVESCO DYNAMIC LARGE CAP VAARCX:PWV57.03USD

Value versus pure value indexes

Each of the major index providers has their own approach to creating a value index. But generally speaking, during the 1990's the index providers adopted a fairly consistent approach to creating "value" and "growth" indexes. Generally speaking, every stock in an index universe, such as the S&P 500 Index, was classified into one of three buckets: 1) stocks that were primarily value stocks; 2) stocks that were primarily growth stocks; and 3) stocks that were not strongly growth or value stocks. This third category of stocks was labeled either "core" or "blend" or "neither" stocks.

When creating a "value" index during the 1990's, most index providers included in the "value" index stocks from the value bucket and stocks from the "blend" or "core" bucket (buckets #1 and #3). At the same time, most index providers created a second "pure value" index that included only the stocks in the "value" index.

SPYV, the SPDR S&P 500 Value ETF, is a good example of an ETF that follows a "value" index, while RPV, the Guggenheim S&P 500 Pure Value ETF, follows the "pure value" index.

In the past ten years, this older framework of everything being a "value" or a "growth stock" has been largely superseded by the concept of multi-factor investing, or smart beta investing. But many of these older "value" and "growth" ETFs continue to be around and continue to have a large amount of assets under management.

Does value investing work?

Let's look first at the performance of some of the oldest value ETFs. Many of the value ETFs have performed really well. What makes it difficult to analyze, however, is that most of these well performing value ETFs are also small and mid cap ETFs, or total market ETFs. Did they outperform because of the size factor or the value factor?

If you look at price charts of some of the oldest value ETFs against their respective benchmarks, the performance of value ETFs is not that amazing. If the value factor exists, it is difficult to tell from current price charts.

If the value factor exists, it is subtle. Or perhaps no longer exists as a significant factor because over time too many investors have used value investing such that it has been "played out". Or perhaps it has been out of favor for a while, but will eventually come back.

Academic factor research has also "waffled" a little bit on whether the value factor is important. In their five factor model, Fama French state that the value factor (what they call HML) is redundant: "the five-factor model never improves the description of average returns from the four-factor model that drops HML (Table 5). The explanation is interesting. The average HML return is captured by the exposures of HML to other factors. Thus, in the five-factor model, HML is redundant for describing average returns, at least in U.S. data for 1963–2013." Hou Xue and Zhang don't use value as a factor in their updated four factor model published in 2015.

Perhaps the value premium exists but it is so closely tied to the size factor that it is difficult to isolate. Fama French state in their 5 factor model:

The value, profitability, and investment factors are averages of small and big stock factors. Here again, joint controls produce interesting changes in the premiums for small and big stocks (Panel A of Table 4). The factors from the 2 3 and 2 2 sorts confirm earlier evidence that the value premium is larger for small stocks (e.g., Fama and French, 1993, 2012; Loughran, 1997).