Could 2025 finally be the year for value ETF investing? Value funds, by some definition, are infrequent star players in market narratives. For many value investors, the aim is to hold value funds over longer periods of time. However, 2025 may be the year where more than just true believers lean on value. One specific value ETF pair, with a particular active investing tilt, could be poised to stand out from the value crowd.
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What’s the case for value this year? Valuations are red hot right now — historically so. That leaves tech firms with red-hot valuations potentially vulnerable to external issues like tariffs or other policy changes. That concentration risk may speak to the case for investors to look to undervalued firms. Especially if tariffs poke a hole in market reliance on big tech, active value ETF investing can really appeal.
Value ETF Duo to Watch
The pair of AVMV and AVLV could provide some compelling options for investors for whom the value case appeals. The duo, investing in midcap and large-cap value firms, respectively, both actively invest.
The Avantis U.S. Mid Cap Value ETF (AVMV ) charges a 20 basis point (bps) fee. The strategy screens firms based on fundamental metrics. Its managers assess firms based on factors like shares outstanding, cash flow, revenue, and more. The strategy can over- or underweight various firms as needed to meet its goals. The Avantis U.S. Large Cap Value ETF (AVLV ), by contrast, charges 15 bps. The fund actively invests in large-cap firms that meet its value screens. Specifically, the value ETF also considers metrics like revenue, cash flow, shares outstanding, and more.
AVMV and AVLV both have seen their ETF prices rise above both their 200- and 50-day simple moving averages, an indication of notable momentum. For investors looking to cycle into value, their low-cost active approach can provide adaptability and tight fundamental scrutiny.
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