In this article, we discuss the Deep Value Stocks ETFs: Top 10 Picks.
This year, growth stocks are largely overvalued, trading at massive premiums compared to the riotous tech bubble of 2021. This is why Morningstar suggests that investors should underweight growth stocks in their portfolios and focus on value stocks instead. As of March 24, 2025, the Morningstar US Market Index saw the highest losses in artificial intelligence stocks, while undervalued stocks gained. Value stocks are trading at an impressive 13% discount to fair value. Thus, Morningstar advises investors to pick up small-cap stocks, which are trading at an 18% discount to fair value, compared to large and mid-cap equities, which trade at the same discount as the broader market.
William C. Nygren, partner, portfolio manager, and chief investment officer at Harris Associates, believes that it is an attractive time to be a value investor in this day and age because of the large spread in valuations between a few tech giants that drive the broader market and everything else. It is a golden time for value investors because the market is so concentrated, which means that cheap stocks are spread all across the other industries, allowing a unique opportunity to put together an investment portfolio comprising low P/E stocks. According to Nygren, it’s not just bank and oil stocks that look cheap right now. Consumer durables, healthcare, and media companies are also attractively valued. Since a value investor focuses on buying stocks that the market isn’t favoring at the moment, they get a much lower price. A value investor has to brave the odds, step in when others waver, and patiently wait for the market to reprice so their portfolio can thrive.
Similarly, veteran value investor Joel Greenblatt of Gotham Asset Management acknowledges that while value stocks have underperformed compared to their growth counterparts over the last two decades, investors who keenly observe and play the market can certainly prevail and outperform the broader market. Greenblatt’s Gotham Asset Management has returned a positive spread for the last three years, and the value investor noted that for a couple of mega stocks to consistently outperform the broader market is rather “abnormal”, possibly hinting that the market will reset its course. With this market outlook in mind, let’s take a look at some of the top performing deep value stocks ETFs.
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Our Methodology
We curated our list of the best deep value stocks ETFs by choosing consensus picks from multiple credible websites. We have mentioned the 5-year share price performance of each ETF as of April 6, 2025, ranking the list in ascending order of the share price performance. Additionally, we analyzed the top holdings of these ETFs to give investors deeper insights. Hedge fund sentiment from Insider Monkey’s Q4 2024 database is also included.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. iShares Russell 1000 Value ETF (NYSE:IWD)
5-Year Share Price Performance as of April 6: 56.48%
iShares Russell 1000 Value ETF (NYSE:IWD) aims to replicate the performance and investment results of the Russell Value Index, which consists of large- and mid-cap American value stocks. These companies are relatively undervalued compared to their market competitors. The ETF was established on May 22, 2000. As of April 1, 2025, the fund holds nearly $62 billion in net assets, with a portfolio comprising 870 holdings. IWD’s 30-day SEC yield stands at 1.79%, with a quarterly distribution frequency. The fund offers an expense ratio of 0.19%.
The biggest holding of iShares Russell 1000 Value ETF (NYSE:IWD) is Berkshire Hathaway Inc. (NYSE:BRK-B), which is one of the top deep value stocks. On January 24, UBS analyst Brian Meredith assigned a Buy rating to Berkshire Hathaway (class A shares), raising the price target from $796,021 to $803,444. UBS made the price adjustment after incorporating the expected insurance impact from the Los Angeles fires.
According to Insider Monkey’s fourth quarter database, 131 hedge funds reported owning stakes in Berkshire Hathaway Inc. (NYSE:BRK-B), up from 120 funds in the prior quarter. Bill & Melinda Gates Foundation Trust was the largest stakeholder of the company, with a position worth nearly $9 billion.
9. Harbor Mid Cap Value Instl (NASDAQ:HAMVX)
5-Year Share Price Performance as of April 6: 58.39%
Harbor Mid Cap Value Instl (NASDAQ:HAMVX) follows the performance of the Russell Midcap Value Index, which represents US mid-cap value stocks. The fund has a quant strategy, with investment models that are rooted in academic research, offering exposure to deep value stocks. As of March 31, 2025, HAMVX offers net assets of $329.5 million and an expense ratio of 0.85%. The ETF was established on March 1, 2002. Its portfolio consists of 181 stocks, and over the past three years, the fund achieved EPS growth of 10.3%.
The Bank of New York Mellon Corporation (NYSE:BK) is the biggest holding of Harbor Mid Cap Value Instl (NASDAQ:HAMVX). The bank operates through Securities Services, Market and Wealth Services, and Investment and Wealth Management segments, among others. On January 15, CFRA analyst Kenneth Leon maintained a Buy rating on The Bank of New York Mellon Corporation (NYSE:BK) and raised the price target from $88 to $95. The analyst reaffirmed an optimistic outlook fueled by BK’s performance and future earnings potential.
According to Insider Monkey’s fourth quarter database, 59 hedge funds were bullish on The Bank of New York Mellon Corporation (NYSE:BK), compared to 45 funds in the last quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the leading stakeholder of the company, with 14 million shares valued at $1 billion.
8. Vanguard Mid-Cap Value Index Fund ETF Shares (NYSE:VOE)
5-Year Share Price Performance as of April 6: 60.81%
Vanguard Mid-Cap Value Index Fund ETF Shares (NYSE:VOE) seeks to replicate the price and yield performance of the CRSP US Mid Cap Value Index, which invests in mid-cap American value stocks. The fund maintains a passively managed, full-replication approach. It was established on August 17, 2006. As of April 26, 2024, VOE offers a 0.07% expense ratio. Its 30-day SEC yield is 2.13%, with distribution per quarter. The fund has a portfolio consisting of 192 stocks, and total net assets stand at $30.8 billion as of February 28.
Arthur J. Gallagher & Co. (NYSE:AJG) is the top holding of Vanguard Mid-Cap Value Index Fund ETF Shares (NYSE:VOE). The company is an insurance and reinsurance provider for businesses and individuals worldwide. On April 1, AJG announced that it has acquired Tresidder Insurance Brokers, an Australian company that offers property and casualty brokerage. This move marks Gallagher’s entry into the Australian market. Arthur J. Gallagher & Co. (NYSE:AJG) is one of the deep value stocks that investors should watch out for.
Among the hedge funds tracked by Insider Monkey, Arthur J. Gallagher & Co. (NYSE:AJG) was part of 77 public stock portfolios at the end of Q4 2024, up from 44 in the preceding quarter. Ken Griffin’s Citadel Investment Group was the largest stakeholder of the company, with 2.40 million shares worth $682.7 million.
7. Vanguard Value Index Fund ETF Shares (NYSE:VTV)
5-Year Share Price Performance as of April 6: 61.18%
Vanguard Value Index Fund ETF Shares (NYSE:VTV) seeks to track the performance of the CRSP US Large Cap Value Index. This benchmark index focuses on investing in large-cap American stocks. VTV is a passively managed fund that follows a full-replication strategy. The ETF was established on January 26, 2004. Since April 24, 2024, the fund’s expense ratio has been 0.04%. Its 30-day SEC yield is 2.09% as of February 28, 2025, with a quarterly dividend distribution policy. VTV holds 340 stocks in its portfolio, with net assets amounting to $195.2 billion as of February 28 this year.
American banking giant, JPMorgan Chase & Co. (NYSE:JPM), is one of the largest holdings of Vanguard Value Index Fund ETF Shares (NYSE:VTV). On March 18, the company announced a quarterly dividend of $1.40 per share, up from the prior dividend of $1.25 per share. The dividend is distributable on April 30, to shareholders listed by April 4, 2025. In the fourth quarter of 2024, the company shelled out $3.5 billion in dividend payments. It is one of the best deep value stocks to keep an eye on.
Among the hedge funds tracked by Insider Monkey, 123 funds reported owning stakes in JPMorgan Chase & Co. (NYSE:JPM) at the end of Q4, compared to 105 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management was the largest stakeholder of the company, with 17.4 million shares worth over $4 billion.
6. Vanguard Small-Cap Value Index Fund ETF Shares (NYSE:VBR)
5-Year Share Price Performance as of April 6: 72.95%
Vanguard Small-Cap Value Index Fund ETF Shares (NYSE:VBR) follows the investment results of CRSP US Small Cap Value Index, which tracks the performance of small-cap American equities. VBR is a passively managed fund that employs a full-replication approach. The ETF was established on January 26, 2004. It offers an expense ratio of 0.07% as of April 26, 2024. The fund’s 30-day SEC yield is 1.99%, and it has a quarterly distribution schedule. VBR has 838 stocks in its portfolio, and its net assets came in at $57.6 billion as of February 28, 2025.
Smurfit Westrock Plc (NYSE:SW), one of the top deep value stocks to monitor, is the biggest holding in Vanguard Small-Cap Value Index Fund ETF Shares (NYSE:VBR)’s portfolio with 8.7 million shares. It is an Irish manufacturer of containerboard, corrugated containers, and paper-based packaging products. On February 13, Citi analyst Anthony Pettinari maintained a Buy rating on Smurfit Westrock Plc (NYSE:SW) but trimmed the price target from $62 to $58. The price cut came after Q4 results and Q1 2025 guidance didn’t meet Wall Street expectations, and the stock slid 5% consequently.
Among the hedge funds tracked by Insider Monkey, 35 funds reported owning stakes in Smurfit Westrock Plc (NYSE:SW) at the end of Q4, compared to 29 funds in the prior quarter.
5. iShares Focused Value Factor ETF (NYSE:FOVL)
5-Year Share Price Performance as of April 6: 87.01%
iShares Focused Value Factor ETF (NYSE:FOVL) tracks the investment results of the Focused Value Select Index, which provides access to American large and mid-cap value stocks. The fund offers concentrated exposure to the stock market, following a rules-based strategy to navigate risk. The ETF was established on March 19, 2019, and it held net assets worth $18.7 million as of April 4, 2025. The fund’s portfolio consists of 40 stocks, with a 30-day SEC yield of 2.93%. Its expense ratio stands at 0.25%.
One of the deep value stocks that iShares Focused Value Factor ETF (NYSE:FOVL) invests in is UGI Corporation (NYSE:UGI). It is a Pennsylvania-based company that distributes, stores, and transports energy products in the US and around the world. The company has four business divisions – Utilities, Midstream & Marketing, UGI International, and AmeriGas Propane. On March 20, Julian Dumoulin-Smith, a Jefferies analyst, maintained a Buy rating on UGI and bumped the price target from $35 to $38. The analyst noted that UGI’s AmeriGas subsidiary has fastened its debt repayment efforts, which will likely result in EBITDA growth in FY 2025 and beyond.
According to Insider Monkey’s fourth quarter database, 27 hedge funds held stakes in UGI Corporation (NYSE:UGI), compared to 26 funds in the last quarter. Cliff Asness’ AQR Capital Management was the biggest position holder in the company, with 2.4 million shares worth over $68 million.
4. Invesco S&P 500 Pure Value ETF (NYSE:RPV)
5-Year Share Price Performance as of April 6: 87.25%
Invesco S&P 500 Pure Value ETF (NYSE:RPV) follows the S&P 500 Pure Value Index, which provides exposure to deep value stocks. The ETF and the benchmark are rebalanced annually. RPV was established on March 1, 2006. The fund offers an expense ratio of 0.35%, and its portfolio consists of 108 stocks as of April 4, 2025. The ETF distributes dividends quarterly, with a 30-day SEC yield of 2.53%.
Invesco S&P 500 Pure Value ETF (NYSE:RPV)’s largest holding is CVS Health Corporation (NYSE:CVS). The company is divided into the Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. On March 20, the company announced a $0.665 per share quarterly dividend. The dividend is to be distributed on May 1, 2025, to shareholders listed by April 22. CVS is one of the top deep value stocks to monitor.
Among the hedge funds tracked by Insider Monkey, CVS Health Corporation (NYSE:CVS) was part of 74 hedge fund portfolios at the end of Q4 2024, compared to 63 in the prior quarter. Richard S. Pzena’s Pzena Investment Management was the biggest stakeholder of the company, with 19.6 million shares valued at $880.3 million.
3. WisdomTree U.S. Value Fund (NYSE:WTV)
5-Year Share Price Performance as of April 6: 107.39%
WisdomTree U.S. Value Fund (NYSE:WTV) invests in US companies that are high quality and offer strong shareholder yields. The fund promotes long-term investing and focuses on a disciplined, model-based approach. As of April 4, 2025, WTV offers an expense ratio of 0.12% and has total assets worth nearly $760 million. The ETF has a 30-day SEC yield of 1.97%, and it was established on February 23, 2007.
American tobacco giant, one of the top deep value stocks on Wall Street, Altria Group, Inc. (NYSE:MO) is the largest holding in WisdomTree U.S. Value Fund (NYSE:WTV)’s portfolio. On February 27, Altria declared a quarterly dividend of $1.02 per share, set to be distributed on April 30, to shareholders on record as of March 25. Altria Group, Inc. (NYSE:MO) has raised its dividend payout for 55 consecutive years.
According to Insider Monkey’s fourth quarter database, 47 hedge funds held long positions in Altria Group, Inc. (NYSE:MO), compared to 32 funds in the earlier quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital was the biggest stakeholder of the company, with 22.2 million shares valued at $1.16 billion.
2. Avantis US Small Cap Value ETF (NYSE:AVUV)
5-Year Share Price Performance as of April 6: 123.56%
Avantis US Small Cap Value ETF (NYSE:AVUV) tracks the price and yield performance of the Russell 2000 Value Index, which offers access to small-cap value stocks with stable financial profiles. As of February 28 this year, AVUV’s portfolio consists of 772 holdings. The fund’s net assets came in at over $13 billion as of April 4, 2025, and it had 168,440,000 outstanding shares. AVUV was launched on September 25, 2019. Avantis US Small Cap Value ETF (NYSE:AVUV)’s expense ratio is 0.25%.
GATX Corporation (NYSE:GATX) is the biggest holding of Avantis US Small Cap Value ETF (NYSE:AVUV). It is a Chicago-based railcar leasing company that has three business segments – Rail North America, Rail International, and Engine Leasing. On January 31, 2025, GATX declared a quarterly dividend of $0.61 per share, which was paid on March 31. The company’s dividend payments have been constant since 1919, and the current payout reflects a 5.2% boost compared to last year’s dividend. It is one of the best deep value stocks to watch.
According to Insider Monkey’s fourth quarter database, 14 hedge funds were bullish on GATX Corporation (NYSE:GATX), compared to 16 funds in the previous quarter. Mario Gabelli’s GAMCO Investors was the largest stakeholder of the company, with 1.32 million shares worth $204.7 million.
1. Invesco S&P SmallCap 600 Pure Value ETF (NYSE:RZV)
5-Year Share Price Performance as of April 6: 129.24%
Invesco S&P SmallCap 600 Pure Value ETF (NYSE:RZV) follows the performance of the S&P SmallCap 600 Pure Value Index. The fund and the index are rebalanced on an annual basis. RZV was established on March 1, 2006. As of April 4, 2025, Invesco S&P SmallCap 600 Pure Value ETF (NYSE:RZV)’s portfolio consists of 147 stocks, with an expense ratio of 0.35%. The fund distributes dividends quarterly and has a 30-day SEC yield of 2.25%.
SpartanNash Company (NASDAQ:SPTN) is the top holding of Invesco S&P SmallCap 600 Pure Value ETF (NYSE:RZV). It is a Michigan-based food solutions company that markets and sells grocery products in the United States. On March 11, SPTN announced a quarterly dividend of $0.22 per share, up 1.1% from its prior dividend of $0.2175. The dividend was distributed on April 2. The company has 33,689,005 outstanding shares as of March 10, 2025. SpartanNash Company (NASDAQ:SPTN) is one of the best deep value stocks to invest in.
Among the hedge funds tracked by Insider Monkey’s fourth quarter database, 14 hedge funds were bullish on SpartanNash Company (NASDAQ:SPTN), the same as the prior quarter. Jim Simons’ Renaissance Technologies was the leading stakeholder of the company, with 742,812 shares worth $13.6 million.
Overall, RZV ranks first among the Deep Value Stocks ETFs: Top 10 Picks. While we acknowledge the potential of deep value ETFs, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RZV but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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