9 Best ETFs for Value Investors in 2026: Low Fees, High Conviction
Not everyone wants to pick individual stocks. And honestly? That's perfectly fine.
Benjamin Graham himself acknowledged that most investors are better off with a diversified, low-cost approach. In The Intelligent Investor, he drew a clear line between "defensive" investors (who should own broad, cheap funds) and "enterprising" investors (who do deep stock-by-stock analysis).
If you're a defensive investor — or you just want a value-tilted core for your portfolio — value ETFs are one of the smartest tools available.
But not all value ETFs are created equal. Some charge outrageous fees. Some define "value" so loosely that growth stocks sneak in. And some are so concentrated that one bad holding tanks the whole fund.
Here are our 9 best ETFs for value investors in 2026, ranked and analyzed.
What Makes a Good Value ETF?
Before we dive into the picks, here's what we looked for:
- Low expense ratio — Every dollar in fees is a dollar not compounding. We want 0.10% or less when possible.
- True value methodology — The fund should screen for low P/E, low price-to-book, high dividends, or other classic value metrics.
- Broad diversification — At least 200+ holdings to reduce single-stock risk.
- Track record — Minimum 5 years of history so we can see how it performs in different markets.
- Liquidity — High trading volume and tight bid-ask spreads.
The 9 Best Value ETFs
1. Vanguard Value ETF (VTV)
The Gold Standard
| Metric | Value |
|---|---|
| Expense Ratio | 0.04% |
| AUM | ~$130 billion |
| Holdings | ~340 stocks |
| Dividend Yield | ~2.5% |
| Top Holdings | Berkshire Hathaway, JPMorgan, UnitedHealth, Exxon |
VTV is the default value ETF for good reason. At just 0.04% expense ratio, you pay $4 per year for every $10,000 invested. It tracks the CRSP US Large Cap Value Index and holds roughly 340 large-cap value stocks.
Why we like it: Rock-bottom fees, massive liquidity, true large-cap value exposure. If you only buy one value ETF, make it this one.
Graham score: The portfolio trades at an average P/E of roughly 16x and price-to-book around 2.5x — not screaming cheap, but solidly in value territory for large caps.
2. iShares Russell 1000 Value ETF (IWD)
The Deep Bench
| Metric | Value |
|---|---|
| Expense Ratio | 0.19% |
| AUM | ~$55 billion |
| Holdings | ~850 stocks |
| Dividend Yield | ~2.0% |
| Top Holdings | Berkshire, JPMorgan, Exxon, Johnson & Johnson |
IWD casts a wider net than VTV, holding around 850 stocks from the Russell 1000 Value Index. The tradeoff? A slightly higher 0.19% expense ratio.
Why we like it: If you want broader diversification within large-cap value, IWD gives you more names. The Russell methodology splits stocks into value and growth buckets using price-to-book and earnings growth forecasts.
3. Vanguard Small-Cap Value ETF (VBR)
The Hidden Gems
| Metric | Value |
|---|---|
| Expense Ratio | 0.07% |
| AUM | ~$30 billion |
| Holdings | ~850 stocks |
| Dividend Yield | ~2.2% |
| Top Holdings | IDEX Corp, Atmos Energy, Reliance Steel |
Small-cap value is where Graham did his best work. These are the stocks that Wall Street ignores — too small for institutional coverage, too boring for CNBC. But historically, small-cap value has been the single best-performing asset class over the long run.
Why we like it: At 0.07% fees, VBR gives you exposure to the "Graham sweet spot" — small, overlooked companies trading at low valuations. The average P/E in this fund is consistently lower than large-cap equivalents.
Important note: Small-cap value can be volatile. Expect bigger swings than VTV. But over 10-20 year periods, the outperformance has been significant.
4. Schwab U.S. Large-Cap Value ETF (SCHV)
The Fee War Winner
| Metric | Value |
|---|---|
| Expense Ratio | 0.04% |
| AUM | ~$12 billion |
| Holdings | ~540 stocks |
| Dividend Yield | ~2.4% |
| Top Holdings | Berkshire, JPMorgan, Exxon, Broadcom |
SCHV matches VTV's 0.04% expense ratio while holding slightly more stocks (~540 vs ~340). It tracks the Dow Jones U.S. Large-Cap Value Total Stock Market Index.
Why we like it: Tied for the cheapest value ETF available. If you already have a Schwab account, this is the obvious pick — zero commission, 0.04% expense ratio, solid value exposure.
5. Avantis U.S. Small Cap Value ETF (AVUV)
The Factor Purist's Pick
| Metric | Value |
|---|---|
| Expense Ratio | 0.25% |
| AUM | ~$15 billion |
| Holdings | ~750 stocks |
| Dividend Yield | ~1.8% |
| Top Holdings | Rotating (actively managed factor tilt) |
AVUV is different from the others on this list — it's actively managed, not purely index-tracking. The fund uses a quantitative approach to target small-cap stocks with low valuations AND high profitability. This dual-factor approach (value + quality) is designed to capture the best of academic research.
Why we like it: AVUV has been one of the best-performing value ETFs since its 2019 launch. The 0.25% expense ratio is higher than passive alternatives, but the strategy has justified the cost. If you believe in factor investing, AVUV is the gold standard for small-cap value.
6. iShares MSCI International Value Factor ETF (IVLU)
Go Global
| Metric | Value |
|---|---|
| Expense Ratio | 0.30% |
| AUM | ~$3 billion |
| Holdings | ~350 stocks |
| Dividend Yield | ~3.5% |
| Top Holdings | Toyota, Novartis, HSBC, Samsung |
Value isn't just an American phenomenon. International stocks have been trading at significantly lower valuations than U.S. stocks for years — the average P/E of international value stocks is around 10-12x, compared to 16-18x for U.S. value.
Why we like it: International diversification at a reasonable 0.30% fee. The higher dividend yield (around 3.5%) reflects the cheaper valuations abroad. For a Graham-style investor, international value is where some of the deepest bargains live.
7. Vanguard High Dividend Yield ETF (VYM)
Income-Focused Value
| Metric | Value |
|---|---|
| Expense Ratio | 0.06% |
| AUM | ~$60 billion |
| Holdings | ~550 stocks |
| Dividend Yield | ~2.8% |
| Top Holdings | JPMorgan, Broadcom, Exxon, Procter & Gamble |
VYM isn't marketed as a "value" ETF, but it effectively is one. By selecting stocks with above-average dividend yields, it naturally tilts toward value — high-dividend stocks tend to have lower P/E ratios and higher book values.
Why we like it: At 0.06% fees, VYM combines income and value in one package. The yield of roughly 2.8% is meaningfully higher than the S&P 500's ~1.3%. If you want dividends and don't want to pick individual stocks, VYM is hard to beat.
8. iShares S&P 500 Value ETF (IVE)
S&P 500, Value Half Only
| Metric | Value |
|---|---|
| Expense Ratio | 0.18% |
| AUM | ~$30 billion |
| Holdings | ~440 stocks |
| Dividend Yield | ~2.2% |
| Top Holdings | Berkshire, JPMorgan, Exxon, Walmart |
IVE takes the S&P 500 and keeps only the value half. If you like the stability of S&P 500 companies but think the index is too growth-heavy (thanks to the "Magnificent 7" tech stocks), IVE strips out the expensive names.
Why we like it: You get S&P 500 quality without S&P 500 overvaluation. The average P/E is significantly lower than SPY, and you won't have 30%+ concentration in tech stocks.
9. Dimensional U.S. Targeted Value ETF (DFAT)
The Academic's Choice
| Metric | Value |
|---|---|
| Expense Ratio | 0.28% |
| AUM | ~$10 billion |
| Holdings | ~1,700 stocks |
| Dividend Yield | ~1.5% |
| Top Holdings | Broadly diversified across small and mid caps |
DFAT comes from Dimensional Fund Advisors, founded by students of Nobel Prize-winning economists Eugene Fama and Kenneth French. Their research proved that value stocks (and small stocks) outperform over time. DFAT puts that research into practice.
Why we like it: Ultra-broad diversification (1,700+ holdings) with a systematic value tilt informed by the best academic research in finance. The 0.28% fee is reasonable for the active management involved.
How to Build a Value ETF Portfolio
Here are three model portfolios depending on your goals:
The Simple Value Portfolio
- 100% VTV — One fund, done.
- Annual cost on $10,000: $4
The Diversified Value Portfolio
- 50% VTV (U.S. large-cap value)
- 25% VBR (U.S. small-cap value)
- 25% IVLU (International value)
- Annual cost on $10,000: $12
The Factor Maximizer
- 40% VTV (U.S. large-cap value)
- 30% AVUV (U.S. small-cap value + quality)
- 20% IVLU (International value)
- 10% VYM (High dividend income)
- Annual cost on $10,000: $16
Value ETFs vs. Stock Picking
Benjamin Graham would have loved today's value ETFs. They give you instant diversification across hundreds of value stocks for almost nothing in fees. The tradeoff? You won't find those extreme bargains — the stocks trading at 50% of book value or 5x earnings — because they're diluted across hundreds of holdings.
If you want to hunt for deep value, you'll need to do individual stock analysis. Our Graham Number Calculator can help you screen for stocks trading below their intrinsic value. But for the core of your portfolio? A low-cost value ETF is hard to beat.
The Bottom Line
Value investing doesn't require picking individual stocks. A well-chosen value ETF gives you Graham-style exposure — low P/E, low price-to-book, dividend-paying companies — for pennies a year in fees.
Start with VTV or SCHV as your foundation. Add VBR for small-cap value if you can handle volatility. Sprinkle in IVLU for international diversification. And if you're a factor nerd, AVUV and DFAT are worth the premium.
The most important thing? Start. A dollar invested in a value ETF today is worth more than a dollar invested in the "perfect" pick next year.
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The information on this site is for educational purposes only. Poor Man's Stocks does not provide financial advice, and nothing here should be interpreted as a recommendation to buy or sell any security. Always do your own research and consult a licensed financial advisor before making investment decisions.
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