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As rising commodity prices have sparked inflation fears, investors are rotating out of the high-growth areas into the low-valued stocks. This is especially true as value stocks have strong fundamentals — earnings, dividends, book value and cash flow — that trade below their intrinsic value and are undervalued by the market.

Value stocks seek to capitalize on the inefficiencies in the market and have the potential to deliver higher returns with lower volatility compared with their growth and blend counterparts. Additionally, value stocks are less susceptible to trending markets and their dividend payouts offer safety in times of market turbulence. Currently, the stock market is being hit by resurging coronavirus cases in Asia, which could dampen the global economic recovery.

Investors should note that the U.S. economy is running hot given the rapid pace of vaccinations, massive stimulus, and large infrastructure spending. This has ignited fears of inflation. The consumer price index for April jumped 4.2% from the year-ago level, representing the sharpest increase since September 2008 and raising concerns that the U.S. economy is overheating.

Moreover, the improvement in corporate earnings growth bodes well for the value stocks. The overall earnings picture for Q1 emerged as one of all-around strength and momentum. Earnings for the 92% of the S&P 500 companies that have reported Q1 results are up 45.8% on 9.0% higher revenues, with 86.1% beating EPS estimates and 76.8% beating revenue estimates. Earnings and revenue growth are tracking above the group’s recent trend, including the pre-pandemic period.

In fact, the overall Q1 total earnings are on track to reach a new all-time quarterly record. Further, estimates for the current and coming quarters are steadily going up — a trend that has been in place since last summer. The positive revisions trend is likely to accelerate in the coming months as we start looking past the pandemic.

That being said, iShares Russell 1000 Value ETF (IWD - Free Report), which targets the value segment, has risen 1.1% over the past month compared with a loss of 4.2% for its growth counterpart iShares Russell 1000 Growth ETF (IWF - Free Report). As such, we have presented five top-performing ETFs that are leading the way higher over the past month and will continue their outperformance given their solid Zacks ETF Rank of #1(Strong Buy) or 2 (Buy).

Invesco S&P 500 Enhanced Value ETF (SPVU - Free Report) – Up 5.3%

This fund follows the S&P 500 Enhanced Value Index, holding 98 stocks in its basket. It has accumulated $135.2 million in AUM while trades in a light average daily volume of 29,000 shares. The product charges 13 bps in annual fees and has a Zacks ETF Rank #1.

Invesco S&P 500 Pure Value ETF (RPV - Free Report) – Up 5.2%

This ETF follows the S&P 500 Pure Value Index, which measures the performance of securities that exhibit strong value characteristics in the S&P 500 Index. It holds 122 securities in its basket and trades in an average daily volume of 859,000 shares. The fund has amassed $2.7 billion in its asset base and charges 35 bps in annual fees. It has a Zacks ETF Rank #2.

Roundhill Acquirers Deep Value ETF (DEEP - Free Report) – Up 4%

With AUM of $48.9 million, this ETF offers exposure to deeply undervalued stock by tracking the performance of the Acquirers Deep Value Index. Holding 99 stocks in its basket, it charges 80 bps in fees from investors per year and trades in an average daily volume of 25,000. DEEP carries a Zacks ETF Rank #2.

Invesco S&P MidCap 400 Pure Value ETF (RFV - Free Report) – Up 3.6%

This fund provides pure exposure to the mid-cap value segment of the U.S. equity market by tracking the S&P MidCap 400 Pure Value Index. With AUM of $183.8 million, it holds 105 stocks in its basket. The product charges 35 bps in fees per year and trades in an average daily volume of 32,000 shares. It has a Zacks ETF Rank #2.

SPDR S&P 400 Mid Cap Value ETF (MDYV - Free Report) – Up 1.4%

With AUM of $1.6 billion, this ETF also targets the mid-cap value segment by tracking the S&P Mid Cap 400 Value Index. It holds 308 securities in its basket and charges 15 bps in annual fees. Volume is good as it exchanges 743,000 shares in hand per day on average.