Best Value ETFs in 2026

How We Chose These ETFs

Selecting the right ETFs for value investing investors requires a careful evaluation of multiple factors. We analyzed dozens of funds across the industry and narrowed our recommendations based on the following criteria. Each factor was weighted according to its importance for investors in this specific category, ensuring that our picks are truly optimized for your goals.

1. Systematic value screening — Systematic value screening based on price-to-earnings and price-to-book metrics
2. Broad diversification across — Broad diversification across undervalued companies
3. Low expense ratios — Low expense ratios for efficient value factor exposure
4. Historical evidence of — Historical evidence of long-term value premium over growth

We also factored in our proprietary Beginner Suitability Score, which evaluates each fund on a 1-to-10 scale considering expense ratios, volatility (beta), diversification (holdings count), dividend history, and track record length. Funds that score consistently high across these dimensions earned a spot on our list.

1. Vanguard Value ETF (VTV) — Best Overall

Vanguard • US Large-Cap Value

VTV tracks the CRSP US Large Cap Value Index, offering broad exposure to large U.S. companies that are considered undervalued relative to their fundamentals. It is a core holding for investors who believe value stocks will outperform over the long run. The fund spans established companies across financials, healthcare, and industrials at a rock-bottom cost.

Vanguard Value ETF earns its spot as our best overall pick because it delivers on the metrics that matter most for value investing investors. With an expense ratio of just 0.04%, you keep more of your returns working for you over time. The fund manages $130.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, VTV has delivered a total return of 10.00%, outperforming many of its peers and rewarding patient, long-term investors. The fund holds 340 individual securities, giving you solid diversification across a meaningful number of positions. Its beta of 0.88 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

VTV currently pays a dividend yield of 2.50%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2004, VTV has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

2. SPDR Portfolio S&P 500 Value ETF (SPYV) — Runner-Up

State Street • US Large-Cap Value

SPYV tracks the S&P 500 Value Index, which selects value-oriented stocks from the S&P 500 based on book value, earnings, and sales ratios relative to price. At just 0.04% in fees, it is one of the cheapest ways to get pure large-cap value exposure. The fund favors financially stable, established companies that trade at reasonable valuations relative to their fundamentals.

SPDR Portfolio S&P 500 Value ETF earns its spot as our runner-up pick because it delivers on the metrics that matter most for value investing investors. With an expense ratio of just 0.04%, you keep more of your returns working for you over time. The fund manages $20.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, SPYV has delivered a total return of 9.50%, outperforming many of its peers and rewarding patient, long-term investors. The fund holds 440 individual securities, giving you solid diversification across a meaningful number of positions. Its beta of 0.89 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

SPYV currently pays a dividend yield of 2.20%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2000, SPYV has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

3. Schwab U.S. Large-Cap Value ETF (SCHV) — Best for Growth

Schwab • U.S. Large-Cap Value

SCHV invests in large U.S. companies that appear undervalued based on fundamental measures like price-to-book and price-to-earnings ratios. It holds roughly 350 stocks focused on financials, health care, and industrials rather than high-flying tech names. Beginners who prefer a more conservative equity approach with higher dividends often find SCHV a good complement to growth-focused funds.

Schwab U.S. Large-Cap Value ETF earns its spot as our best for growth pick because it delivers on the metrics that matter most for value investing investors. With an expense ratio of just 0.04%, you keep more of your returns working for you over time. The fund manages $12.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, SCHV has delivered a total return of 10.50%, outperforming many of its peers and rewarding patient, long-term investors. The fund holds 350 individual securities, giving you solid diversification across a meaningful number of positions. Its beta of 0.88 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

SCHV currently pays a dividend yield of 2.30%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2009, SCHV has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

4. iShares Russell 1000 Value ETF (IWD) — Best for Stability

BlackRock • US Large-Cap Value

IWD tracks the Russell 1000 Value Index, which selects stocks from the largest 1,000 U.S. companies based on lower price-to-book ratios and lower expected growth rates. It provides broad value exposure with more holdings than S&P 500 value funds. The fund is widely used by institutional investors and financial advisors as a core value allocation in diversified portfolios.

iShares Russell 1000 Value ETF earns its spot as our best for stability pick because it delivers on the metrics that matter most for value investing investors. With an expense ratio of just 0.19%, you keep more of your returns working for you over time. The fund manages $55.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, IWD has delivered a total return of 9.50%, outperforming many of its peers and rewarding patient, long-term investors. The fund holds 850 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 0.90 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

IWD currently pays a dividend yield of 2.20%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2000, IWD has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

Comparison Table

Here is a side-by-side comparison of all 4 ETFs in our value investing category. This table highlights the key metrics you should evaluate when choosing between these funds. Pay close attention to expense ratios and beginner scores, as these are the most impactful factors for long-term investment success.

*Beginner Score is calculated based on expense ratio, beta, holdings count, dividend yield, and fund inception year. Past performance does not guarantee future results.

Common Mistakes Value Investing Investors Make

Even with a solid selection of ETFs, investors in the value investing category can undermine their results by falling into avoidable traps. Understanding these common pitfalls will help you stay on track and avoid costly errors that could set back your financial progress by years or even decades.

• 1

  Expecting value stocks to: Expecting value stocks to outperform every single year when it is cyclical

• 2

  Confusing cheap stocks with: Confusing cheap stocks with value stocks since some are cheap for good reasons

• 3

  Abandoning value strategies during: Abandoning value strategies during growth-dominated market cycles

• 4

  Concentrating too heavily in: Concentrating too heavily in a single value sector like financials or energy

The best defense against these mistakes is a simple, written investment plan that you commit to following regardless of market conditions. Define your target allocation, set up automatic contributions, and schedule a review only once or twice per year. This removes emotion from the process and keeps you focused on long-term wealth building rather than short-term noise.

Frequently Asked Questions