Is the Vanguard Value ETF a good buy?

The Vanguard Value ETF (VTV) is one of the best value stock ETFs on the market. With a low expense ratio and a strong record of tracking the CRSP Large Cap Value index, it's a great option for those interested in investing in value stocks without researching individual companies.

What is the difference between VTV and VGT?

VTV is the ticker for the Vanguard Value ETF, and VGT is the ticker for the Vanguard Information Technology ETF. VTV invests in value stocks trading below their intrinsic value, while VGT invests in tech stocks, which are primarily growth stocks but may also present some value.

What is the best value stock ETF?

The Vanguard Value ETF is the best overall value stock ETF. Its low expense ratio and strong index-tracking record make it a great all-around option for investors looking for a value stock ETF.

Do value ETFs pay dividends?

Value ETFs often hold dividend-paying stocks. The funds will distribute those dividends to shareholders on a regular schedule, usually quarterly or annually.

Does Fidelity have a value ETF?

Yes, Fidelity issues several value ETFs, including a general value factor ETF and large-cap, blue chip, and international funds.

Are value ETFs riskier than growth ETFs?

Value ETFs are typically considered less risky than growth ETFs, but that's only true if you're comparing similar ETFs. For example, a deep-value ETF focused on small companies may exhibit greater volatility and risk than a large-cap growth ETF.

Are value ETFs suitable for income-focused investors?

There is often considerable overlap between value stocks and high-dividend stocks. However, income-focused investors will want to find ETFs designed to pay dividends to shareholders. Those ETFs are often composed of quality value stocks.

Best Value ETFs to Buy in September 2026

Value ETFs can net serious profits over time.

By Adam Levy – Updated Apr 9, 2026 at 2:00 AM EST | Fact-checked by Frank Bass

Key Points

Value ETFs provide easy access to diversified portfolios of undervalued stocks.
Top value ETFs include Vanguard Value ETF, tracking large-cap stocks with low fees.
Value ETFs are ideal for adding stability to your portfolio during market downturns.

Many investors are drawn to value stocks for the potential to generate outsize returns, but identifying mispriced stocks takes serious research. A value exchange-traded fund (ETF) does that work for you by investing in a basket of undervalued companies, giving you instant diversification without having to pick individual stocks.

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How do value ETFs work?

A value ETF pools money from investors and uses specific criteria, such as low price-to-book ratios or high dividend yields, to find companies whose intrinsic value exceeds their market price. Most track an index automatically, though some are actively managed.

Unlike mutual funds, ETFs trade on an exchange throughout the day, making them more flexible and easier to transfer between brokers.

Top value ETFs to consider

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Top value exchange-traded funds (ETFs) in ##YEAR##.

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1. Vanguard Value ETF

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NYSEMKT: VTV

Vanguard Morningstar Value ETF

Today's Change

(-0.32%) $-0.72

Current Price

$223.92

Key Data Points

AUM

$257B

Dividend Yield

1.83%

Expense Ratio

0.03%

Top Holdings

JPM

3.50%

3.45%

BRK-B

2.99%

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The Vanguard Value ETF (VTV -0.32%) is the best overall option for investors seeking diversified portfolio exposure to value stocks. With more assets under management than any other ETF in the sector, it tracks the CRSP Large Cap Value index by investing directly in its component companies. The ETF holds shares of the companies in the index in close proportion to their index weighting.

The CRSP Large Cap Value index is predominantly composed of large-cap companies, but it also includes companies with relatively small market capitalization, providing some exposure to mid-cap stocks.

Vanguard keeps transaction fees low for ETF shareholders by allowing the fund's proportional holdings to deviate slightly from the index's composition. Despite that allowance, the difference between the Vanguard Value ETF and the index it tracks is extremely small and among the best in the industry. The ETF's turnover was just 8.8% in 2025.

With an expense ratio of only 0.03%, investors don't pay much in fees, either. That makes the Vanguard Value ETF one of the least expensive and most efficient ways to invest in more than 300 value stocks.

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2. iShares Russell 1000 Value ETF

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NYSEMKT: IWD

iShares Trust - iShares Russell 1000 Value ETF

Today's Change

(-0.57%) $-1.47

Current Price

$254.06

Key Data Points

AUM

$84B

Dividend Yield

1.38%

Expense Ratio

0.18%

Top Holdings

AMZN

6.05%

AAPL

5.71%

MSFT

4.98%

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The iShares Russell 1000 Value ETF (IWD -0.57%) tracks the Russell 1000 Value index, which selects large- and mid-cap stocks based on valuation metrics. It overweights index members with low price-to-book ratios and steady revenue and earnings growth. Meanwhile, it throws out most stocks that exhibit growth characteristics. The result is a broad portfolio with a heavy value tilt.

Investors looking for a more diverse ETF may like the iShares Russell 1000 Value ETF. It contained 865 stocks in March 2026, far more than most of its peers. But since it casts such a wide net, it can also include many value traps and stocks that behave much more like growth stocks.

With an expense ratio of 0.18%, the ETF is a bit more expensive than many other large-cap value ETFs. But few offer the level of diversification this one does.

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3. Vanguard Mid-Cap Value ETF

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NYSEMKT: VOE

Vanguard Morningstar Mid-Cap Value ETF

Today's Change

(-0.73%) $-1.51

Current Price

$205.28

Key Data Points

AUM

$39B

Dividend Yield

1.81%

Expense Ratio

0.05%

Top Holdings

VLO

1.55%

MPC

1.54%

CMI

1.46%

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The Vanguard Mid-Cap Value ETF (VOE -0.73%) tracks the CRSP US Mid Cap Value index by owning stocks in proportion to their weightings in the index. The CRSP US Mid Cap Value index includes companies covering 70% to 85% of cumulative capitalization and identifies value stocks based on several metrics.

Companies with high book values, projected earnings, historical earnings, dividends, or sales relative to their share prices are potential index candidates.

Since more criteria govern the CRSP US Mid Cap Value Index, the ETF has a relatively high turnover rate, but that's an issue with all mid-cap value ETFs. With an extremely low expense ratio of just 0.05%, the Vanguard Mid-Cap Value ETF is a top way to gain exposure to undervalued medium-sized companies.

4. Avantis U.S. Small Cap Value ETF

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NYSEMKT: AVUV

American Century ETF Trust - Avantis U.s. Small Cap Value ETF

Today's Change

(-0.81%) $-1.01

Current Price

$124.31

Key Data Points

AUM

$31B

Dividend Yield

1.59%

Expense Ratio

0.25%

Top Holdings

MATX

1.04%

0.90%

LNTH

0.90%

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The Avantis U.S. Small Cap Value ETF (AVUV -0.81%) is an actively managed small-cap value fund. Its benchmark index is the Russell 2000 Value index, which tracks the returns of companies with low price-to-book ratios and lower forecast growth values in the Russell 2000, an index that represents 2,000 of the smallest companies in the U.S.

Although technically an active ETF, the fund manager aims to maintain the benefits of indexing, such as diversification and low turnover. However, active management allows the fund to add value for investors by using current price and profitability information.

The Avantis U.S. Small Cap Value ETF gives investors more concentrated exposure to the small-cap value factor than most small-cap value index funds. The fund's turnover rate is also very low. While investors will pay an expense ratio of 0.25% (higher than the average index fund), the premium provides greater exposure to actual small-cap value stocks.

The combination of a passive philosophy and some active implementation may not be suitable for everyone since it involves the risk of underperforming the benchmark. Still, Avantis is one of the best ways to gain concentrated exposure to small-cap value stocks.

5. iShares MSCI Intl Value Factor ETF

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NYSEMKT: IVLU

iShares Trust - iShares Msci Intl Value Factor ETF

Today's Change

(-0.72%) $-0.32

Current Price

$44.37

Key Data Points

AUM

$4.7B

Dividend Yield

3.17%

Expense Ratio

0.31%

Top Holdings

HSBA.L

2.20%

7203.T

1.93%

BNP.PA

1.79%

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BlackRock's (BLK -2.13%) iShares MSCI Intl Value Factor ETF (IVLU -0.72%) tracks the MSCI World ex USA Enhanced Value index. Although this ETF includes some mid-cap stocks, it is mostly composed of large-cap companies, as the index is weighted by market capitalization.

The MSCI World ex USA Enhanced Value index comprises about 350 companies operating in 22 developed markets, with Japan, the U.K., France, and Germany accounting for most of its weight. The index determines which companies to include based on how a company's stock price compares to its book value or forward earnings, or on how its enterprise value compares to its cash flow from operations.

The ETF's 0.31% expense ratio is higher than the one charged by many domestic ETFs. However, it is still an attractive option for investors seeking a global, value-oriented ETF.

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6. VictoryShares Emerging Markets Value Momentum ETF

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NASDAQ: UEVM

Victory Portfolios II - VictoryShares Emerging Markets Value Momentum ETF

Today's Change

(-0.23%) $-0.14

Current Price

$60.53

Key Data Points

AUM

$257M

Dividend Yield

2.63%

Expense Ratio

0.53%

Top Holdings

3988.HK

1.34%

KBANK.BK

1.26%

3328.HK

1.23%

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Investors seeking an ETF that provides portfolio exposure to undervalued companies in emerging markets can opt for shares in the VictoryShares Emerging Markets Value Momentum ETF (UEVM -0.23%).

This ETF tracks the MSCI Emerging Markets Select Value Momentum Blend index, which selects companies for inclusion based on both value and growth momentum.

The index assigns each included company a single score, giving more weight to companies with the lowest stock price volatility. Companies from China, South Korea, and Taiwan account for the majority of the index's weight.

The ETF uses representative sampling to track the underlying index, meaning it owns only a fraction of the index's stocks. Representative sampling by an ETF, while more efficient and cost-effective, reduces the correlation between the ETF's performance and the index it tracks. The ETF's expense ratio of 0.45% is about average for emerging market ETFs.

7. Vanguard High Dividend Yield ETF

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NYSEMKT: VYM

Vanguard High Dividend Yield ETF

Today's Change

(-0.51%) $-0.83

Current Price

$162.69

Key Data Points

AUM

$99B

Dividend Yield

2.23%

Expense Ratio

0.04%

Top Holdings

AVGO

7.36%

JPM

3.82%

XOM

2.63%

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Most stocks that pay dividends are considered value stocks. As a result, investors often find overlap between ETFs focused on value stocks and those focused on dividend stocks. And if you want a higher dividend yield than the average value stock ETF, you should consider the Vanguard High Dividend Yield ETF (VYM -0.51%).

The fund seeks to track the performance of the FTSE High Dividend Yield index, which includes all stocks with relatively high dividend yield forecasts. This forward-looking criterion ensures that the index's dividend yield remains consistently high.

Indeed, the recent yield on the Vanguard High Dividend Yield ETF is 2.4%, which is about 0.4 percentage points higher than the Vanguard Value ETF. Importantly, it maintains a tilt toward large-cap value stocks, so investors still gain exposure to value. The ETF charges an expense ratio of just 0.04%.

8. Schwab U.S. Dividend Equity ETF

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NYSEMKT: SCHD

Schwab U.S. Dividend Equity ETF

Today's Change

(-0.93%) $-0.32

Current Price

$34.09

Key Data Points

AUM

$111B

Dividend Yield

3.07%

Expense Ratio

0.06%

Top Holdings

MRK

4.88%

AMGN

4.81%

ABT

4.63%

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The Schwab U.S. Dividend Equity ETF (SCHD -0.93%) tracks the Dow Jones US Dividend 100 Index. As the name implies, the index includes 100 stocks. They're selected based on strict criteria, including 10 consecutive years of paid dividends, with a balance sheet and earnings outlook to support continued dividend payments and increases. So, while the fund might not be as diverse as some others on this list, it holds high-quality stocks.

While technically focused on dividend stocks, the index ends up being full of value stocks. The best dividend payers are often mature, slow-growing, and cash-rich businesses, overlapping with the typical value stock.

The recent yield on the ETF is 3.4%, which is even higher than the Vanguard High-Yield ETF. The index's more selective nature means higher turnover rates and potentially greater volatility, but investors won't have to pay much extra to hold the ETF. Its expense ratio of 0.06% is in line with the other low-cost ETFs on this list.

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How investors use value ETFs in portfolios

Value ETFs are a simple way to increase your portfolio's allocation to value stocks. That can be done by balancing a value stock ETF with a growth stock ETF as the core of a portfolio, or an investor might add a value stock ETF alongside a broad market index fund to tilt toward value stocks. Many investors like to add small-cap value stocks to their portfolio using an ETF.

Pros and cons of investing in value ETFs

Pros

Downside protection: In a bear market, value stocks typically hold up better than the rest of the market.
Diversification: Value ETFs can help diversify your portfolio.

Cons

Less upside: Value stocks rarely climb as high or as fast as growth stocks.
Industry concentration: Value ETFs are heavily weighted toward financials and energy stocks.
Tracking error: Smaller indexes can introduce tracking error, leading to returns that don't match the index they're meant to match.

Value ETFs versus dividend ETFs

Many value ETFs offer relatively high dividend yields because value stocks tend to pay higher dividends. They're often mature companies with steady cash flow that supports a solid dividend. But a dividend ETF is particularly focused on dividends, either high-yielding stocks or high-potential dividend growers (or both). A value ETF typically ignores the dividends of the stocks in the portfolio; they're merely a side effect of the types of stocks that usually trade for lower valuations.

How to choose a value ETF

Start by deciding what kind of exposure you want. Small-cap value stocks have historically outperformed the market, but are less volatile. International funds add diversification but carry additional risk. If income matters, a dividend-focused fund may be the better fit.

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Value stock ETFs FAQ

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About the Author

Adam Levy is a contributing Motley Fool stock market analyst covering technology, consumer, and financial stocks and how policy, economic, and consumer trends shape personal finance, Social Security and retirement savings. Before The Motley Fool, Adam was a financial advisor at Edward Jones. He studied finance and electrical engineering at Carnegie Mellon University.

TMFnCaffeine

@admlvy

Adam Levy has positions in American Century ETF Trust - Avantis U.s. Small Cap Value ETF. The Motley Fool has positions in and recommends Vanguard High Dividend Yield ETF and Vanguard Value ETF. The Motley Fool recommends BlackRock. The Motley Fool has a disclosure policy.

Best Value ETFs to Buy in September 2026: How to Invest and Future Outlook

Value ETFs can net serious profits over time.

Key Points

How do value ETFs work?

Top value ETFs to consider

1. Vanguard Value ETF

Key Data Points

2. iShares Russell 1000 Value ETF

Key Data Points

3. Vanguard Mid-Cap Value ETF

Key Data Points

4. Avantis U.S. Small Cap Value ETF

Key Data Points

5. iShares MSCI Intl Value Factor ETF

Key Data Points

6. VictoryShares Emerging Markets Value Momentum ETF

Key Data Points

7. Vanguard High Dividend Yield ETF

Key Data Points

8. Schwab U.S. Dividend Equity ETF

Key Data Points

How investors use value ETFs in portfolios

Pros and cons of investing in value ETFs

Pros

Cons

Value ETFs versus dividend ETFs

How to choose a value ETF

Related investing topics

Best REIT ETFs for 2026 and How to Invest

Best ETFs for Long-Term Growth

6 Best Growth ETFs to Buy in 2026: Are They Right for Your Portfolio?

5 Best Treasury Bond ETFs in 2026

Value stock ETFs FAQ

Is the Vanguard Value ETF a good buy?

Is the Vanguard Value ETF a good buy?

What is the difference between VTV and VGT?

What is the difference between VTV and VGT?

What is the best value stock ETF?

What is the best value stock ETF?

Do value ETFs pay dividends?

Do value ETFs pay dividends?

Does Fidelity have a value ETF?

Does Fidelity have a value ETF?

Are value ETFs riskier than growth ETFs?

Are value ETFs riskier than growth ETFs?

Are value ETFs suitable for income-focused investors?

Are value ETFs suitable for income-focused investors?

About the Author

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Value stock ETFs FAQ

Is the Vanguard Value ETF a good buy?

Is the Vanguard Value ETF a good buy?

What is the difference between VTV and VGT?

What is the difference between VTV and VGT?

What is the best value stock ETF?

What is the best value stock ETF?

Do value ETFs pay dividends?

Do value ETFs pay dividends?

Does Fidelity have a value ETF?

Does Fidelity have a value ETF?

Are value ETFs riskier than growth ETFs?

Are value ETFs riskier than growth ETFs?

Are value ETFs suitable for income-focused investors?

Are value ETFs suitable for income-focused investors?

How do value ETFs work?

Top value ETFs to consider

Best REIT ETFs for 2026 and How to Invest

Best ETFs for Long-Term Growth

6 Best Growth ETFs to Buy in 2026: Are They Right for Your Portfolio?

5 Best Treasury Bond ETFs in 2026

1. Vanguard Value ETF

2. iShares Russell 1000 Value ETF

3. Vanguard Mid-Cap Value ETF

6. VictoryShares Emerging Markets Value Momentum ETF

Related investing topics

Key Data Points

How investors use value ETFs in portfolios