Exchange-Traded Funds (ETFs) are a popular investment vehicle for traders and investors looking to gain exposure to a diversified portfolio of assets. ETFs offer several advantages over mutual funds, such as lower fees, tax efficiency, and intraday trading.
One popular investment strategy among traders and investors is to invest in value stocks - companies that are trading at a lower price relative to their fundamental value. Value ETFs aim to track a basket of stocks that are undervalued by the market.
Here are the top 10 performing value ETFs based on year-to-date returns as of April 2023:
iShares Edge MSCI USA Value Factor ETF (VLUE) - With a year-to-date return of over 16%, VLUE is one of the top performing value ETFs. This ETF invests in large and mid-cap US stocks that are considered undervalued based on specific value factors.
Invesco S&P SmallCap Value with Momentum ETF (XSVM) - XSVM is a small-cap value ETF that invests in US companies with both value and momentum characteristics. It has a year-to-date return of over 15%.
iShares Russell 1000 Value ETF (IWD) - IWD is a large-cap value ETF that tracks the performance of US stocks with lower price-to-book ratios and lower expected earnings growth rates. It has a year-to-date return of over 15%.
Vanguard Value ETF (VTV) - With a year-to-date return of over 14%, VTV is another top performing value ETF. It invests in large-cap US stocks that are considered undervalued based on specific value factors.
Invesco S&P 500 Value with Momentum ETF (SPVM) - SPVM is a large-cap value ETF that invests in US companies with both value and momentum characteristics. It has a year-to-date return of over 14%.
SPDR Portfolio S&P 500 Value ETF (SPYV) - SPYV is a large-cap value ETF that tracks the performance of US stocks with lower price-to-book ratios. It has a year-to-date return of over 14%.
Schwab U.S. Large-Cap Value ETF (SCHV) - SCHV is a large-cap value ETF that invests in US stocks that are considered undervalued based on specific value factors. It has a year-to-date return of over 13%.
iShares Morningstar Large-Cap Value ETF (JKF) - JKF is a large-cap value ETF that tracks the performance of US stocks with lower price-to-book ratios and higher-than-average dividend yields. It has a year-to-date return of over 13%.
Invesco S&P MidCap Value with Momentum ETF (XJH) - XJH is a mid-cap value ETF that invests in US companies with both value and momentum characteristics. It has a year-to-date return of over 13%.
iShares S&P Small-Cap 600 Value ETF (IJS) - IJS is a small-cap value ETF that tracks the performance of US small-cap stocks with lower price-to-book ratios. It has a year-to-date return of over 12%.
It's worth noting that past performance is not indicative of future results, and traders and investors should always do their due diligence before investing in any ETF. Additionally, while value investing can be a profitable strategy, it's important to remember that undervalued stocks can stay undervalued for an extended period. Therefore, investors should have a long-term investment horizon and a diversified portfolio to mitigate risks.