Best ETFs/Best Value ETFs for 2026

Best Value ETFs for 2026

Value ETFs target companies trading at discounted valuations relative to their fundamentals, including metrics like low price-to-earnings ratios, high dividend yields, and low price-to-book values. Value investing — the discipline of buying companies for less than their intrinsic worth — has been one of the most academically supported investment strategies, though its performance has been cyclical, with long periods of underperformance relative to growth interspersed with sharp reversals.

VTV from Vanguard tracks the CRSP US Large Cap Value Index and provides broad exposure to hundreds of large-cap value stocks at Vanguard's ultra-low expense ratio. IWD from iShares tracks the Russell 1000 Value Index and is one of the most heavily traded value ETFs with strong institutional adoption. SCHV from Schwab tracks the Dow Jones U.S. Large-Cap Value Total Stock Market Index and competes aggressively on cost with the lowest expense ratio in the category.

Value stocks tend to outperform during economic recoveries, rising interest rate environments, and periods of inflation — conditions that have been present in recent years. They typically pay higher dividends than growth stocks and exhibit lower volatility, making them attractive for income-oriented and risk-conscious investors. Sector weightings in value ETFs lean toward financials, healthcare, energy, and industrials, creating a portfolio that looks very different from the tech-heavy growth and broad market indices.

How We Rank

ETFs are ranked by assets under management (AUM). Only ETFs with $50M+ in assets are included. Data is updated daily.

#SymbolFund NameAUM
1BNDVanguard Total Bond Market ETF$389.20B
2VTVVanguard Value ETF$227.40B
3VYMVanguard High Dividend Yield ETF$88.50B
4SCHDSchwab U.S. Dividend Equity ETF$83.69B
5IWDiShares Russell 1000 Value ETF$68.78B
6VBRVanguard Small-Cap Value ETF$62.30B
7IVEiShares S&P 500 Value ETF$48.13B
8VOEVanguard Mid-Cap Value ETF$34.60B
9SPYVState Street SPDR Portfolio S&P 500 Value ETF$32.26B
10EFViShares MSCI EAFE Value ETF$29.49B
11IUSViShares Core S&P U.S. Value ETF$24.24B
12AVUVAvantis U.S. Small Cap Value ETF$22.57B
13AVEMAvantis Emerging Markets Equity ETF$20.19B
14DFIVDimensional - International Value ETF$18.01B
15AVDVAvantis International Small Cap Value ETF$17.33B
16GBTCGrayscale Bitcoin Trust ETF$15.28B
17SCHVSchwab U.S. Large-Cap Value ETF$14.87B
18IWSiShares Russell Mid-Cap Value ETF$14.78B
19AVDEAvantis International Equity ETF$14.04B
20DFUVDimensional - US Marketwide Value ETF$13.28B
21DFATDimensional - US Targeted Value ETF$12.55B
22IAGGiShares Core International Aggregate Bond ETF$12.33B
23IWNiShares Russell 2000 Value ETF$12.21B
24MGVVanguard Mega Cap Value ETF$11.50B
25AVUSAvantis U.S. Equity ETF$10.96B

What to Look For

Different value indices define value differently — some use only price-to-book, while others incorporate earnings yield, dividend yield, and sales growth to classify value stocks. These methodology differences lead to meaningfully different portfolios. Expense ratios are very low across major value ETFs, typically 0.04% to 0.20%.

Examine the sector weights, as value ETFs are typically heavy in financials, healthcare, and industrials while underweight in technology. Consider the dividend yield, which is usually higher for value ETFs than the broad market, and check for value traps — stocks that are cheap for a reason — by reviewing the fund's quality screening criteria.

Which Value ETFs Is Best for You?

VTV is the premier large-cap value ETF, holding roughly 340 stocks at a low 0.04% expense ratio. Its broad diversification across value sectors including financials, healthcare, energy, and consumer staples provides comprehensive value exposure. VTV has been a reliable performer during value-led markets and offers a competitive dividend yield above the S&P 500 average.

IWD tracks the widely followed Russell 1000 Value Index and has the liquidity and options market depth that institutional investors require. Its portfolio is similar to VTV with slightly different weightings due to index methodology differences. IWD is the go-to value ETF for traders and tactical allocators.

SCHV provides the lowest-cost access to large-cap value stocks at an expense ratio of roughly 0.04%. Its Dow Jones index methodology creates a portfolio that is highly correlated with but not identical to VTV and IWD. For Schwab customers and cost-focused investors, SCHV is an excellent choice that delivers value factor exposure at minimal cost.

Frequently Asked Questions

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