The Hottest Value Stock ETFs To Buy Now

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Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

This week, she’s joined by a special guest, Zacks Director of ETF Research, Neena Mishra, to discuss what is going on with value stock ETFs in 2021.

Value has outperformed growth for the first time in years in 2021.

Some of the hottest ETFs, as far as fund inflows, have been value stock ETFs, including Vanguard’s Value ETF (VTV - Free Reportwhich has seen about $9.5 billion flow in this year. That puts it in the top 10 for fund inflows.

It’s up 18% year-to-date, beating the S&P 500 which is up 12%.

But if you want an even bigger outperformance, you may have to take a look at one of the niche value ETFs.

4 Hot Value ETFs for 2021

1.  Invesco S&P SmallCap 600 Pure Value ETF (RZV - Free Reportholds just 168 small cap stocks, so it is more concentrated in value. Financials are the largest sector, at 20.5% of the portfolio. Shares are up 48.7% year-to-date.

2.  Invesco S&P 500 Pure Value ETF (RPV - Free Reportis the large cap equivalent of the ETF above. But the Financials are an even bigger percentage of the portfolio at 43.9%. It only has 120 stocks. Because financials are the second-best performing sector in 2021, after energy, RPV is up 31% year-to-date.

3.  Invesco S&P SmallCap Value with Momentum ETF (XSVM - Free Reportalso holds just 120 positions. But it’s largest holding is GameStop, at 10% of the portfolio. Because of its emphasis on momentum, it also has exposure to the hot agriculture and energy industries. XSVM is red-hot in 2021, up 55%.

4.  Avantis US Small Cap Value ETF (AVUV - Free Reportis a rare actively managed value ETF. It had 583 holdings as of Mar 31, 2021. Financials were also the largest industry, at 29%, followed by Industrials at 17%. Energy had a bigger representation than in some other value ETFs, at 11%. AVUV is up 37% year-to-date.

Disclaimer: Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the  more

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