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Value stocks, which trade at attractive price-to-book, price-to-earnings, and price-to-sales ratios, were relative outperformers amid last year’s market turmoil. The Russell 1000 Value Index beat its growth counterpart by about 21%.

Most value stocks are mature, dividend-paying companies that are being favored by investors currently. These stocks tend to hold up better in a rising rate and high inflation environment.

Value stocks were earlier out of favor for more than a decade as investors flocked to high-flying growth companies. However, these stocks have outperformed growth stocks by 4.1% annually in the US since 1927, per Dimensional Fund Advisers.

The Vanguard Value ETF (VTV - Free Report) selects stocks based on multiple value factors. Berkshire Hathaway (BRK-B - Free Report), UnitedHealth Group (UNH - Free Report), and Exxon Mobil (XOM - Free Report) are its top holdings.

The SPDR Portfolio S&P 500 Value ETF (SPYV - Free Report) and the iShares Core S&P U.S. Value ETF (IUSV - Free Report) select stocks with highest value scores from the S&P 500 Index and the S&P 900 Index respectively. Beaten-down tech giants Microsoft (MSFT - Free Report) and Amazon (AMZN) are among the top holdings in these funds.

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