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Growth stocks outperformed value stocks by an average of 8% per year over the past decade, thanks mainly to the surge in mega-cap technology stocks since the 2008 global financial crisis.

Value stocks, which trade at relatively attractive price-to-book (P/B), price-to-earnings (P/E) and price-to-sales (P/S) ratios, were largely ignored by investors who flocked to high-flying growth companies. But value is making a comeback lately and the Russell 1000 Value Index has outperformed the Growth Index by about 6% over the past year.

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.

The Vanguard Value ETF (VTV - Free Report) is the most popular and one of the cheapest funds in the space. The Invesco S&P 500 Pure Value ETF (RPV - Free Report) focuses on companies with highest value scores. The actively managed Alpha Architect U.S. Quantitative Value ETF (QVAL - Free Report) looks for cheapest and highest quality value stocks.

Berkshire Hathaway (BRK-B - Free Report), Johnson & Johnson (JNJ - Free Report), Exxon Mobil (XOM - Free Report), Chevron (CVX - Free Report), and JPMorgan Chase (JPM - Free Report) are among the top holdings in these ETFs. Please watch the short video to learn more.

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