Best Value ETFs in 2025 – Invest in Undervalued Stocks

Best Value ETFs in 2025 – Invest in Undervalued Stocks for High Returns

ETFs
February 28, 2025

Why Invest in Value ETFs?

Value ETFs focus on companies that are trading below their intrinsic value, often offering lower volatility, higher dividends, and stable long-term returns. These funds are ideal for investors looking for consistent growth with less risk.

✅ Key Benefits of Value ETFs:

Invest in Undervalued Stocks – Buy companies with strong fundamentals at a discount
Lower Volatility – Less risk than growth stocks
Consistent Returns – Focus on long-term value creation
Strong Dividends – Many value ETFs offer higher dividend yields

Top 5 Value ETFs for 2025

1️⃣ Vanguard Value ETF (VTV) – Best Overall Value ETF

✅ Expense Ratio: 0.04%
✅ 1-Year Return: 14.5%
✅ Top Holdings: Berkshire Hathaway, JPMorgan Chase, Johnson & Johnson
Why Invest? VTV tracks the CRSP U.S. Large Cap Value Index, providing exposure to top blue-chip value stocks.

2️⃣ iShares Russell 1000 Value ETF (IWD) – Best for Large-Cap Value

✅ Expense Ratio: 0.19%
✅ 1-Year Return: 13.8%
✅ Top Holdings: Procter & Gamble, ExxonMobil, Pfizer
Why Invest? IWD offers exposure to large-cap value stocks with a diversified portfolio.

3️⃣ Schwab U.S. Dividend Equity ETF (SCHD) – Best for Dividend Income

✅ Expense Ratio: 0.06%
✅ Dividend Yield: 3.7%
✅ Top Holdings: Coca-Cola, PepsiCo, Texas Instruments
Why Invest? SCHD focuses on high-dividend, high-value stocks, making it ideal for income-focused investors.

4️⃣ SPDR S&P 500 Value ETF (SPYV) – Best for Broad Market Exposure

✅ Expense Ratio: 0.04%
✅ 1-Year Return: 13.2%
✅ Top Holdings: Bank of America, Verizon, IBM
Why Invest? SPYV is a cost-effective way to invest in large-cap U.S. value stocks.

5️⃣ Invesco S&P 500 Pure Value ETF (RPV) – Best for Deep Value Investing

✅ Expense Ratio: 0.35%
✅ 1-Year Return: 15.1%
✅ Top Holdings: Citigroup, Dow Inc., Walgreens Boots Alliance
Why Invest? RPV focuses on deep-value stocks with strong rebound potential.