Each year, as headlines tout inflation or red hot returns, investors revisit their favorite value stocks. Value is rarely as flashy as growth, and in a moment defined by AI, value has trailed lots of tech and growth strategies. In response, many investors want to wait for the right moment for value. That may be a mistake, when an active value ETF like the T. Rowe Price Value ETF (TVAL ) is already delivering in the value stocks space.
Key Takeaways:
The S&P 500 is overvalued almost 200% based on recent data from June 2026.
Even while investors want to wait for an AI bubble burst, an active value ETF can deliver right now.
TVAL has outperformed its benchmark, the Russell 1000 Value index.
Just because huge AI stocks and tech funds have had some big hot streaks recently doesn’t mean value stocks can’t deliver right now. Recent analysis found that the S&P 500 is overvalued 116% to 207% based on June 2026 monthly data. The time may be now, then, to look to stocks the market is missing out on.
That’s where TVAL’s active value stocks approach can really stand out. Rather than wait for the right value stocks to bubble up in an index, TVAL can move more quickly. The strategy charges 33 basis points. Leaning on T. Rowe Price’s research capabilities, the strategy takes a bottom-up approach, finding stocks to construct the portfolio based on its managers’ convictions.
TVAL does not have market-cap limits but primarily targets large-caps. The active ETF looks for underrated stocks. Its managers assess firms for dividend yield and restructuring opportunities. It also looks for measures like book value, sales, cash flow, and earnings.
See more: 3 Reasons to Use Active ETFs in Your Core Allocation
The strategy uses the Russell 1000 Value index as a benchmark per T. Rowe Price. TVAL has outperformed that index on a YTD basis per YCharts data. TVAL has returned 19.4% in that time, compared to just 18.9% for the index.
Together, the value stocks fund can make the case for inclusion in a core plus role. With valuations still very high, now may be the time to add some value stocks with an active heuristic.
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