Large-cap tech growth strategies aren’t the only way forward for navigating the U.S. equity market.
The BNY Investments team recently published an insights post explaining why value equities might be worth a closer look right now. To start, the BNY Investments team noted that value companies tend to perform more resiliently during bouts of inflation than growth stocks, at least from a historical perspective. Given that inflationary pressures are unlikely to abate any time soon, this could continue to create favorable opportunities for value companies.
Even though advisors and investors continue to favor tech-tilted growth strategies, the BNY Investments post highlighted that other sectors could prove potent for value-focused strategies. Specifically, the team cited the financials and energy sectors as ones worth considering.
“In financials, we believe large banks like Bank of America and JP Morgan can offer opportunities through diversified lines of business where deregulation and buybacks or dividends are tailwinds for the sector,” the BNY Investments team noted. “In energy, we see attractive supply-demand dynamics in oil, gas, and refineries, such as Exxon, Phillips 66, and Marathon Petroleum.”
BKDV's Bottom-Up Approach to Value
The BNY Dynamic Value ETF (BKDV ) provides exposure to all of these aforementioned sectors and companies. An actively managed take on value investing, BKDV employs a mix of fundamental and quantitative research to select its stocks.
BKDV uses a bottom-up approach to select companies for its portfolio, with an emphasis on three factors in particular. These factors are intrinsic value, sound business fundamentals, and positive business momentum. This balanced approach helps the fund find good discounts, while still emphasizing companies with sound business models and long-term potential.
The financial sector remains the largest sector tilt within BKDV’s portfolio, accounting for a little over 25% of assets as of October 31, 2025. However, the fund remains well-diversified across other sectors, including energy, providing ample avenues for generating long-term value. This approach could help put BKDV in a good position not only to adapt to inflationary pressures but also to favorable market valuations.
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