7 Best Value ETFs to Buy and Hold

 The latest and greatest ETFs to add to your portfolio.  

MARCH 10, 2023 Invested Advice, rankings and stock market news for investors.

Happy Friday, investors! Stocks slide as a high-stakes jobs report looms, and SVB Financial drops 60% after its securities fire sale. Highlights of today's newsletter include our market insights plus these new articles: 7 Best Value ETFs to Buy and Hold 7 Best Psychedelic Stocks to Watch in 2023 5 Apps for Socially Responsible Investing TODAY'S FEATURED STORY 7 Best Value ETFs to Buy and Hold Groundbreaking research by Nobel laureates Eugene Fama and Kenneth French opened the door for fund managers to systematically home in on factors like value when choosing investments. Today, numerous large firms like Vanguard and Blackrock have launched multiple exchange-traded funds, or ETFs, that deliver affordable and transparent value exposure. However, not all value ETFs are created equal. Depending on their methodology, holdings and strategy, different ETFs can deliver varying levels of value-factor exposure. Here's what the experts recommend for those looking to add a value ETF to their portfolio, plus seven picks for top-rated value ETFs: Why target the value factor? "Fama and French define value as a lower price-to-book ratio compared to sector peers, but in practice, there are a number of different ways investors define value risk factors," says Anessa Custovic, chief information officer at Cardinal Retirement Planning Inc. "The general idea is that value stocks are underpriced and cheap, so if you find those now and purchase them you would likely experience higher returns." Why use an ETF for value investing? Enterprising value investors can use online stock screeners to filter for stocks with value characteristics, but managing a portfolio of a dozen or more value stocks can be time consuming and expensive for non-professional investors. "My experience has been that value-factor ETFs tend to be used as a 'satellite' investment in a portfolio to achieve a certain objective," says Clark. For example, an investor could hold an S&P 500 ETF at 80% of their portfolio and augment it with the SPDR S&P 600 Small Cap Value ETF (ticker: SLYV). Click here to continue reading. VALUE ETFEXPENSE RATIO SPDR S&P 600 Small Cap Value ETF (ticker: SLYV)0.15% Roundhill Acquirers Deep Value ETF (DEEP)0.8% Vanguard Value ETF (VTV)0.04% Vanguard High Dividend Yield ETF (VYM)0.06% Dimensional US Targeted Value ETF (DFAT)0.28% Avantis US Large Cap Value ETF (AVLV)0.15% JPMorgan Active Value ETF (JAVA)0.44%